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Description:	This course examines modern techniques used by major financial institutions for managing financial risks: market risks, credit risks, liquidity risks and operational risks.
Topics:	Managing market risks: Value-at-Risk (VaR)   Defining Value-at-Risk. Basic mathematics surrounding the establishment of variance and standard deviations. Probability distribution function and normal distribution. VaR- the standard approach VaR- historical simulation VaR- Monte-Carlo simulation Back testing. Stress testing. Managing credit risk   Scoring, structural models, ratings based models Internal models and  Rating Agencies Basel II regulation on Credit Risk Managing liquidity risk, operational risks, and legal risks Capital adequacy: Basel II Accord
Teaching:	28 hours during third semester