Risk Management for Financial Institutions

COURSE OBJECTIVE
This course offers a comprehensive introduction in Risk Management and especially related to financial institutions like insurance companies, pension funds and asset managers. This course will be supported with Deloitte experts.

This course is structured in 6 parts, covering the fundamentals how these institutions work and to what risktypes they are exposed:
Part 1 (three weeks) : Insurance companies;
Part 2 (two weeks): Pension funds;
Part 3 (one week): Asset managers.

The course consists of the following topics regarding each part/different financial institution:
1. The working and business model;
2. Supervision and regulation;
3. Different risk types: Credit Risk, Market Risk and Operational Risk, Interest Rate Risk and Liquidity Risk;
4. Strategic and integrated risk management.

All parts and topics of the course are closely knitted to the learning goals of Quantitative skills, Academic skills, Bridging theory and practice. You will learn to think as a risk manager and will be challenged to have a holistic view.

By the end of the course students should be able to:

• Explain and analyse the working of these financial institutions and their business models;
• Outline and interpret regulation and the impact on these financial institutions;
• Explain, analyse and evaluate the different risk types;
• Identify and apply different risk measure techniques;
• Create and discuss a view on integrated risk management.

COURSE CONTENT
You will learn the fundamentals of Financial Institutions (Insurance companies, Asset Managers and Pension Funds), and the working of these institutions in the financial markets. What are the risks where these institutions have to deal with? How can you identify, monitor and report the different risk types? How are they aligned with each other and, last but not least, how can you manage these risks with all this knowledge? The course will also focus on how you manage an Insurance company with regard to capital. How can you optimize your capital and is there a future for Insurance companies? Pensions are nowadays a actual and political topic. This course will elaborate on the complexity and possibilities of Pension funds. Upon completion you will be challenged to have a broader view on the issues and you will have more background for the actual discussions.

TEACHING METHODS
Interactive lectures and Tutorials

TYPE OF ASSESSMENT
Final written exam (Individual assessment) and assignments.

ENTRY REQUIREMENTS
There is no formal entrance requirement for the Deloitte minor Risk Management except for VWO Wiskunde A (or B).

RECOMMENDED BACKGROUND KNOWLEDGE
Finance I, Accounting I, A basic course in quantitative methods and/or statistics is strongly recommended.