Summary of content

Business is all about taking risks in order to get a return. The advancement in technology has changed the way we perceive risk and reward, and the way we price and manage them. Firms use advance risk management techniques to identify possible sources of risk, analyse and understand relative importance of risk and how they impact the organisation as a whole. Given the emphasis on risk management in recent years, this module is a combination of enterprise and financial risk modelling using both Excel and @Risk software programs. These software applications will be used to develop simple and complex risk management models. The module aims to develop student's knowledge and understanding of both the framework and practical applications of financial/enterprise risk management. Students will be exposed to the measurement and modelling of the industry accepted categorisation of risks, including qualitative and quantitative risks. The module focuses on issues relating to how losses can arise in any business decision and methods of managing and controlling those losses. The basic issues include Financial Analysis, Describing Risk with Probability Distributions, and Risk Analysis using Monte Carlo Simulations amongst others. In addition to a number of contemporary issues currently influencing risk management, students will also be exposed to different methods of modelling Quantitative and Qualitative risks, Sensitivity and Scenario Analysis, amongst others.

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