Understanding financial risk is crucial for anyone involved in managing assets or investments or running a business. Financial risk encompasses a wide array of threats that can significantly impact an individual's or organization's financial health. By exploring financial risk dynamics, one can better grasp how various factors such as market fluctuations, liquidity constraints, credit defaults, business disruptions, and investment uncertainties can lead to potential financial losses.

In this course we are going to delve into understanding five financial risk categories; market risk, liquidity risk, credit risk, business risk and investment risk. Each of these have their own sub-risk categories which include: -

• Market risk - equity risk, interest rate risk, currency risk, and commodity risk, inflation, volatility and systemic risks
• Liquidity risk - refinancing risk, deposit risk and margining risk
• Credit risk - settlement risk, concentration risk, sovereign risk and default risk
• Business risk – reputational risk, operational risk, country risk, political risk, legal risk and moral hazard
• Investment risk – model risk, execution risk and valuation risk

The course also includes many examples of actual events/mini case studies over the past few decades to illustrate the various risks.

Course Key Concepts: Financial Risk, Risk Management, Market Risk, Liquidity Risk, Credit Risk, Business Risk, Investment Risk, Equity Risk, Interest Rate Risk, Currency Risk, Commodity Risk, Inflation Risk, Volatility Risk, Systemic Risk, Refinancing Risk, Deposit Risk, Margining Risk, Settlement Risk, Concentration Risk, Sovereign Risk, Default Risk, Reputational Risk, Operational Risk, Country Risk, Political Risk, Legal Risk, Moral Hazard, Model Risk, Execution Risk, Valuation Risk, Market Fluctuations, Liquidity Constraints, Credit Defaults, Business Disruptions, Investment Uncertainties, Financial Health, Asset Management, Investment Management, Diversification, Financial Stability.