In this course, we will analyze different sources of risk for firms and discuss in detail the tools available to managers to mitigate those risks. Most of our analysis will be focused on risk management in financial institutions for two interrelated reasons. First, these institutions are more exposed to financial risks than non-financial firms, due to the nature of their activities. Second, the importance of adequately managing these risks fosters the permanent creation of new tools to address them. ​This is an area of growing interest and high demand in the job market, after the large losses incurred during the global financial crisis due to failures in risk management systems. During the course we will look at the most recent developments in these models, reflecting many of the lessons learned during the crisis.

Prerequisites: Yes (see syllabus)