Introduction to risk management -Masters, Business, Mathematics, Final Exam, Monish, Financial Derivatives

This course has always been a required course for majors of Master of business, but in recent years it has also been recommended as an elective course by many other business schools. In previous years, there was a big controversy in this course, although the name is called risk management, almost all of them are theoretical knowledge points, which makes many skilled and calculating students cry out of pain. Therefore, from 2019, the course content and structure have been significantly adjusted, and gradually began to introduce the important content of quantitative risk management: financial derivatives and hedging transactions.


BFF5902,The basic structure of the entire course can be divided into three categories: the first category is the first five weeks of content, from the very beginning of the introduction of risk management, and risk control framework, after the risk management structure and risk measurement, these are considered a basic introduction, a lot of content is more common in our daily lives, for example, large enterprises in addition to external accounting companies to do the accounts, their internal audit department, which is the most basic The embodiment of risk control. The next step is to explain in detail the risk management structure from the vertical dimension: background, identification, assessment, determination, program, continuous review, etc. These are integrated into many real cases in the financial industry, which students need to fully understand in the learning process. The second major category is a two-week study of the secondary market risk categories: strategic risk, operational risk, environmental risk, compliance risk, and reputational risk, starting in week six. Each category will have a background description, development direction, and management approach, which is often tested in the final exam. The last category is the financial derivatives we talked about before, across the last four weeks, the four basic categories of derivatives: Forwards, Futures, Options, Swap will be explained in detail here, but you can rest assured that, as a basic introduction to risk control course, derivatives are only the basic four "product introduction, however, you can rest assured that as a basic introduction to risk control, derivatives are only the basic four "product introductions" and compound derivatives will not appear in this course. Need help clicking GPA.


In comparison, the final derivatives section is not very difficult. For most students, as long as they understand the mathematical logic, the exam is just a "substitution of numbers". The real complexity is the "reading comprehension" of the theoretical questions, the first two categories will have a lot of case studies and terminology, which requires students to have a strong ability to apply and explain the knowledge. For example, the final exam will not only ask: What is a risk management framework? It also asks: How can the framework be used to address the strategic risks of such-and-such a company? Therefore, as you can see, rote memorization is not very effective, so long live the understanding.


Regardless of the specific specialization of the students, this course can help you to have a preliminary understanding of the basic risks. More theoretical learning can build a foundation that will better serve the subsequent professional courses. For more details, click GPA Expert.


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