The aim of this course is to enable students to recognize the main types of risks encountered in the financial system, understand how to measure and manage these risks, adopt the enterprise-wide risk management approach, and learn how to manage risks using various tools, especially derivatives.

This course begins with an introduction to the major types of risks encountered in the financial system, including currency risk, interest rate risk, credit risk, liquidity risk, and operational risk. It explores contemporary techniques used in risk measurement such as Value at Risk (VaR), stress testing, and volatility analysis. The COSO framework for enterprise risk management is presented, along with a detailed examination of risk regulation practices in the banking sector under Basel Accords. The course also covers the use of derivative instruments—such as forwards, futures, options, and swaps—for hedging purposes. Real-world case studies from both the financial and real sectors are included to support practical understanding. By the end of the course, students will be able to formulate risk management strategies at the enterprise level.