Examines the fundamentals of risk, focusing on:
- The unique characteristics of each type of risk and their causes, measurement, monitoring and management in different types of Financial Services (banking, insurance(both life and general), superannuation, managed investments and hedge funds) in both Australian and international contexts
- Using the study of individual types of risk to identify the fundamentals or risk, i.e. the common characteristics and interconnectedness of different types of risk
- Evaluation of the different methodologies for measuring, monitoring and managing different types of risk
- The common features across different types of risk for measurement and management (such as stress testing)
- The difference between regulatory requirements and commercial imperatives in managing different types of risk
- The use of risk management tools in business practices such as business selection, pricing and performance management
- The difference between simple and very practical procedures for risk measurement and management and more valid, but more complex, procedures
- The need for the deep embedding of risk management in the procedures, culture and governance of a financial services enterprise
- The relationship between the management of individual risks and overall enterprise risk management and overall business management.
This subject contributes to the corporate finance, risk management and investment management majors.