This course leads to the elucidation of the theories, concepts and practices that make up the complex and dynamic world of banking and financial markets and the plethora of risks embedded in that domain. You are able to identify such risks using tools such as ‘value at risk’ (VaR), ‘stress testing’, etc. You also gain knowledge about hedging instruments such as futures, options and swaps.
We will look at structured financial products such as Asset Backed Securities (ABS), Residential Mortgage Backed Securities (RMBS), Credit Default Swaps (CDS), Collateralized Debt Obligations (CDO) and their role in transferring/diversifying the risks to several entities in the financial markets.
We will also examine the unintended consequences and outcome of those risk transfer instruments that accentuated the systemic risk and eventually lead to the 2008 global financial meltdown.
In addition, we will look at special topics in risk management such as Value at Risk (VaR) and stress testing, as well as recent trends in regulation including the Basel-III guidelines on capital adequacy that have been implemented in several countries to manage risk in a proactive and consistent manner.
We will examine how far have those regulatory measures and guidelines been able to achieve the well-intentioned goal of safeguarding the stability of financial systems across countries and whether they would, in the future, be able to anticipate and avert cascading adverse outcomes as witnessed in the 2008 global financial crisis
You should have a minimum of 1+ Year of Experience with min 50% in any UG Program.
What You’ll Learn
In this course you will learn:
- The basic attributes and structure of Asset Securitization
- Various types of asset-backed securities such as Residential Mortgage Backed Securities (RMBS), Credit Card Securitization, etc.
- Credit Default Swaps (CDS) and Collateralized Debt Obligations (CDO) and their role in managing (sometimes, augmenting) risks in any financial system
- How to measure, analyze and proactively manage the degree of risk embedded in the financial assets portfolio of any entity, using various tools and techniques such as ‘Value at Risk’ (VaR), ‘Stress Testing’ and similar guidelines issued by the Bank of International Settlement (BIS) and other regulatory bodies
- How well could the Basel-III guidelines on capital adequacy: (a) achieve the well-intentioned goal of safeguarding the stability of financial systems across countries and (b) anticipate / avert cascading adverse outcomes as witnessed in the global financial crisis of 2008
P C Narayan
Faculty at IIM Bangalore
P C Narayan is a faculty member in the Finance & Accounting Area at the Indian Institute of Management Bangalore (IIMB), where he has been teaching since 2003. His areas of research interest and expertise include risk management, banking and financial markets, international finance, regulation and monetary policy and technology related to banking and financial markets. His PhD thesis won the ‘Outstanding Doctoral Research Award’ of the European Foundation for Management Education and Emerald Publishing in 2013. He won the ‘Teaching Innovator Award-2016’ from the Ministry of Human Resources Development, Government of India for his innovative and effective use of technology in the graduate class-room. He was a member of the Advisory Group of the Unique Identification Authority of India (UIDAI) set up by the Government of India in 2009. He consults for and trains managers in several organizations in India and abroad in the banking, manufacturing and information technology sectors. Prior to joining IIMB, he was based overseas for several years with a multinational bank and subsequently as the President of a bank in India. Having spent many years in industry as well as in academia and having travelled to over 40 countries and having worked in 20 different countries, he brings a breadth of global experience and a unique cross-cultural perspective in his teaching and research.
We have a dedicated team who will be more than happy to meet and discuss what course suits you best based on your profile and interests. Drop an email on firstname.lastname@example.org to schedule a one-on-one appointment with an enrollment counselor. Or call us on +91 9422 0092 07/09/10/12 and we can find a time to meet.