This unit goes beyond market risk analytics/management and addresses important systemic sources of risk which are more difficult to quantify and model. Topics include: risk and loss aversion, Black Scholes option pricing, risk management of options and the Greeks, value at risk, credit risk both single name and portfolio, agency risk and behavioural finance. The lecturers add relevance, particularly in case studies, by showing how the concepts studied manifest in events currently unfolding in the real world. The unit is intended to round out students' exposure to the big risk measurement and management issues. -- Course Website
Instructor: Associate Professor Bernd Luedecke
Prerequisites: (Admission to MAppFin or PGCertAppFin) and ECFS865 and ECFS867
