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FM202: Analysis and Management of Financial Risk

Subject Area: Finance

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Course details

  • Department
    Department of Finance
  • Application code
    SS-FM202
Dates
Session oneNot running in 2023
Session twoOpen - 10 Jul 2023 - 28 Jul 2023
Session threeNot running in 2023

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We are accepting applications. Apply early to avoid disappointment.

Overview

Companies must take risks if they are to survive and prosper. The risk management function plays a critical role in understanding a company’s current exposure to risk and the risks it plans to take in the future.

This course is designed to develop your understanding of risk management practices to thrive in an increasingly competitive and complex business environment. Starting with an introduction to the classification of risk, diversification, hedging strategies, and optimal portfolio choice, you will move on to tackle important topics like how endogenous risk can be used to understand the origins of financial risk within the financial system. You will also explore behavioural aspects of risk and their impact on risk management practices.

This hands-on course allows you to apply the theory to real-world situations, giving you the tools and techniques needed to assess financial risk in various sectors, such as banking, insurance, asset management, hedge funds and regulation. By the end of the course, you will know how to critically assess risk management research and reports in an industry setting, understanding the limitations of quantitative risk management in real-life situations.

Key information

Prerequisites: Basic mathematics and statistics. Introductory Finance (to the level of FM250) or Introductory Microeconomics (to the level of EC101).

Level: 200 level. Read more information on levels in our FAQs

Fees: Please see Fees and payments

Lectures: 36 hours

Classes: 18 hours

Assessment: Two written examinations

Typical credit: 3-4 credits (US) 7.5 ECTS points (EU)

Please note: Assessment is optional but may be required for credit by your home institution. Your home institution will be able to advise how you can meet their credit requirements. For more information on exams and credit, read Teaching and assessment

Is this course right for you?

This course helps to develop relevant knowledge and understanding of risk management practices. It is especially useful if you are aiming to advance your career in the competitive world of global finance, in fields such as asset management, hedge funds, investment analysis or risk management.

Outcomes

  • Learn the main tools and practices needed to assess and evaluate financial risks
  • Understand risk management practices in an industry setting
  • Gain the ability to critically assess risk management reports and research
  • Define the use and implementation of Value-at-Risk and its use in risk forecasts
  • Understand the impact of the credit crisis and its implications for risk management and regulation

Content

Matt Stark, Australia

My course will really help my career, as the skills I learnt are applicable to the field I want to go into. I wouldn’t have this opportunity at my home institution, so it has been a great opportunity.

Faculty

The design of this course is guided by LSE faculty, as well as industry experts, who will share their experience and in-depth knowledge with you throughout the course.

Dr Georgy Chabakauri

Associate Professor of Finance

Dr Cameron Peng

Assistant Professor of Finance

Department

The LSE Department of Finance is devoted to excellence in teaching and research in the full range of the subfields of finance including corporate finance, asset pricing theory, risk management, empirical analysis of capital markets, behavioural finance, portfolio analysis, derivatives pricing, microstructure and financial econometrics.

The Department of Finance (formerly part of the Department of Accounting and Finance) has grown in recent years to become one of the largest and most highly-regarded finance groups in the UK and Europe. It is closely associated with the LSE's Financial Markets Group and Systemic Risk Centre which regularly host a wide variety of seminars, conferences and public addresses by leading academics and practitioners.

With over 200 post-graduate students selected from a pool of top applicants world-wide, a faculty recruited from the top departments internationally, and a steady flow of distinguished visitors, we have a stimulating environment for research and learning that is on par with the best in the world.

The Department, along with the Departments of Accounting and Management, was ranked as the UK leader for Business and Management Studies in the 2014 Research Excellence Framework.

Apply

Applications are open

We are accepting applications. Apply early to avoid disappointment.