LAW630

Does not satisfy the Writing Requirement. This course will provide students with an intensive overview of the management and regulation of financial risk. The management of financial risk is of profound importance to a wide range of stakeholders including investors of all sizes, corporations (including financial institutions), and regulatory agencies. We will focus on the major forms of financial risk: credit risk, market risk, liquidity risk, and solvency risk. We will explore how these risks arise, how they are measured, and the potential consequences if they are not managed properly. Further, we will consider both external regulation from the perspective of supervisory agencies as well as internal regulation from the perspective of senior management and the risk management department. The course emphasizes developing an understanding of the underlying rationale for regulations related to financial risk and how they are interpreted and implemented by firms. Accordingly, students will engage in exercises that stress identifying financial risks and determining what actions should be taken to manage these risks.