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Risk Management
University 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
examination rules
• End test            0 - 40 points
• Presence (2x)       + 5 points
• Presentation        + 5 points


                  •   2.0         up to 24 points
                  •   3.0         25 – 29 points
                  •   3.5         30 – 34 points
                  •   4.0         35 – 39 points
                  •   4.5         40 – 44 points
                  •   5.0         45 – 49 points
                  •   5.5         over 50 points
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
topics covered during seminar
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

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Rm 01

  • 1. Risk Management University of Economics, Kraków, 2012 Tomasz Aleksandrowicz
  • 2. 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
  • 3. 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
  • 4. 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?
  • 5. Organizational issues course practical information
  • 6. 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
  • 7. examination rules • End test 0 - 40 points • Presence (2x) + 5 points • Presentation + 5 points • 2.0 up to 24 points • 3.0 25 – 29 points • 3.5 30 – 34 points • 4.0 35 – 39 points • 4.5 40 – 44 points • 5.0 45 – 49 points • 5.5 over 50 points
  • 8. 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
  • 9. 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
  • 10. 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
  • 11. 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
  • 12. What are your expectations on this course what you would like to learn here? what will be most interesting?
  • 14. 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
  • 15. 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