This Financial Risk Management course provides a comprehensive introduction to the quantitative tools and techniques used to measure, analyze, and manage financial risk in modern financial markets. The course begins with the fundamentals of financial risk management and systematic versus unsystematic risk, building a strong theoretical foundation.
A major part of the course focuses on Value at Risk (VaR) using historical, parametric, and Monte Carlo methods, with full implementations in both Excel and Python. Learners will also study Expected Shortfall (CVaR), maximum drawdown, and portfolio risk analysis techniques.
The course covers portfolio theory and optimization, including the Efficient Frontier, CAPM, Monte Carlo portfolio simulation, and asset allocation strategies. It also explains fixed income risk through bond duration, convexity, and interest rate risk management.
In derivatives, learners will explore forward and futures contracts, options strategies, Black-Scholes and Binomial option pricing models, the Greeks, delta hedging, cross hedging, and basis risk. Advanced topics include counterparty credit risk, credit default swaps, margin trading, leverage, and implied volatility.
This course is ideal for finance students, risk analysts, portfolio managers, and candidates preparing for FRM or CFA certifications.
