Risk ManagementUniversity of Economics, Kraków, 2012 Tomasz Aleksandrowicz
Risk management• relatively new and developing discipline• growing importance in recent years• financial crisis brings attention on how risk is managed• public perception and awareness of risk is increasing• core competence in many industries
recent risk related events on media• EURO currency under pressure• Europe in debt - sovereign rating downgrading• Greece critical situation• Banking issues: capitalization, compensation, layoffs• Commodities prices fluctuations• Middle-east political situation• LIBOR manipulation scandal
Have you ever been investing actively on stock exchange?working for financial institution (or corporation)? applying for credit in a bank? running your own business? involved in extreme sports? travel to less developed countries on your own?
Organizational issues course practical information
organizational issues• 15 seminars, each Tuesday• presence not mandatory (but rewarded)• method of study: lectures, exercises, case studies• materials will be published on dropbox• examination based on course contents• suggested books & internet sites facultative only• any questions - please ask
how to get materials from• use public link (registration not needed): – http://dl.dropbox.com/u/1353770/Risk/RM-01.pptx• replace ‘01’in ‘RM-01’ with correct seminar number• additional materials file names will be provided
interesting reference books• Fundamentals of Risk Management for Accountants and Managers: Tools & Techniques, Paul M. Collier, CIMA, 2009• The Essentials of Risk Management, Robert Mark, Dan Galai and Michel Crouhy, McGraw-Hill, 2005• Fundamentals of Enterprise Risk Management, John Hampton, Amacom, 2009• Financial Risk Manager Handbook, Philippe Jorion, Wiley Finance, 2009
risk management on internet• Newspapers, e.g.: Financial Times or Wall Street Journal• The Institute of Risk Management - www.theirm.org• Financial Risk Management News & Analysis - www.risk.net• The Business Insurance - www.businessinsurance.com• Risk Management Professional - www.rmprofessional.com• Risk Management Magazine - www.rmmag.com
risk management on internet (II)• GARP - Global Association of Risk Professionals - www.garp.org (FRM certificate)• PRMIA - Professional Risk Managers International Association - www.prmia.org (PRM certificate)• Calculated risk - www.calculatedriskblog.com• Clusterstock - www.businessinsider.com/clusterstock• Deal Book - dealbook.nytimes.com• RM Monitor - www.riskmanagementmonitor.com
What are your expectations on this course what you would like to learn here? what will be most interesting?
course content• introduction to risk & risk management• risk management principles, process and techniques• financial markets & crisis in risk management perspective• financial risk management: market risk, credit risk, liquidity risk• operational risk management• business / strategic and hazard risk management• practical application on stock exchange, in investment, banking, insurance, enterprise, for private individuals• risk management in projects
why study risk management?• investing on stock exchange• working in finance industry (e.g. banking or insurance)• working as manager in enterprise or corporation• working in advisory or government institutions• running a company• managing own career and personal finance• working as project manager and being involved in projects