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Banking and Financial Markets: A Risk Management Perspective

By P C Narayan   |   Indian Institute of Management Bangalore (IIMB)
Learners enrolled: 23637
Banking and financial markets encompass the ‘ecosystem’ that (a) channelizes money from those who have it (i.e. savers/investors) to those who need it (i.e. borrowers) and (b) facilitates cross-border flow of funds through exchange of currencies. That ecosystem of banks and financial markets (including Central Banks) has deepened in size, sophistication and complexity over the years. However, in recent times they have also been the subject of abuse, failures and economic distress in several countries resulting in a ‘contagion’ that has concurrently affected several countries around the world!

More recently, and perhaps more importantly, thanks to the liberalization of most economies, the world has witnessed an exponential increase in the free flow of capital across countries. Banking institutions and financial markets, being the predominant conduit for such free flow of capital across countries, have therefore become even more "globally interconnected." Such a globally interconnected financial system, combined with regulatory systems that are country-specific and hence varying considerably in rigor and implementation, has further compounded the risks and the consequent contagion, as witnessed in the global financial meltdown that was triggered in 2008.

This course will look at banking and financial markets from a risk management perspective where you will learn about:

  •     How to measure and manage credit risk, interest rate risk, foreign exchange risk, operational risk, off-balance sheet risk, etc. in any financial system.
  •     How these risks have become ‘omnipresent’ and significantly more complex as a result of globalization and interconnectedness of banking and financial markets across countries.
  •     Liquidity and solvency issues in financial institutions and markets and how they could be managed.
  •     The structure of asset securitization and credit derivatives and their role in managing (sometimes augmenting) risks in any financial system.
  •     How to measure, quantify and analyze the level and degree of financial risk over a stipulated time frame using different tools and techniques such as Value at Risk (VaR), Stress Test, etc.
  •     The role of regulation and monetary policy to: (a) ensure the stability and longevity of any financial system and (b) minimize the impact of possible adverse outcomes and contagion effects implicit in any financial crisis, particularly when the financial systems are globally interconnected.
Summary
Course Status : Completed
Course Type : Core
Duration : 6 weeks
Category :
  • Management Studies
Credit Points : 2
Level : Postgraduate
Start Date : 31 Jul 2023
End Date : 31 Oct 2023
Enrollment Ends : 09 Sep 2023
Exam Date : 30 Nov 2023 IST

Note: This exam date is subject to change based on seat availability. You can check final exam date on your hall ticket.


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Course layout

Week 1: Overview of Risk Management
Week 2: Credit Risk
Week 3: Interest Rate Risk
Week 4: Foreign Exchange Risk
Week 5: Asset Securitization, CDO & CDS
Week 6: BASEL II, BASEL III and Regulation & Monetary Policy

Click here for Syllabus

Books and references

None

Instructor bio

P C Narayan

Indian Institute of Management Bangalore (IIMB)
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.

Course certificate

Enrolling and learning from the course is free. However, if you wish to obtain a certificate, you must register and take the proctored exam in person at one of the designated exam centre’s. The registration URL will be announced when the registration form is open. To obtain the certification, you need to fill out the online registration form and pay the exam fee. More details will be provided when the exam registration form is published, including any potential changes. For further information on the exam locations and the conditions associated with filling out the form, please refer to the form.

Grading Policy: 

Assessment Type

Weightage

Mid-Term & End-Term

25%

Final Exam

75%


Certificate Eligibility:
  • 40% marks and above in Mid Term & End Term
  • 40% marks and above in the final proctored exam

Score

Type of Certificate

>=90

Gold

75 - 89

Silver

70 - 74

Bronze

40 - 70

Successfully Completed

<40

No Certificate


Sample Certificate:


Disclaimer: In order to be eligible for the certificate, you must register for enrolment and exams using the same email ID. If different email IDs are used, you will not be considered eligible for the certificate.



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