In-Class

1. Lectures - Lectures by the instructor are key to providing the students the theory and concepts of risk management as well as the tools of risk management. During lectures multiple real-world examples and problems will be shown and worked-through for students to gain the necessary skills. Finally, we will have occasionally have guest lectures to highlight how modern companies use risk management.
2. Discussion - News and academic articles will be discussed as a larger group in order to encourage students to recognize and critically think about the implementation of risk management in modern companies. We will also discuss several cases that highlight risk management failures and successes. Finally, we will occasionally utilize in-class simulation exercises (e.g., trading games) that allow students to apply and test their knowledge of derivative markets.
3. Videos and Other Digital Activities - We will utilize videos, both internally and externally produced, to expand on topics from lecture, provide additional content, and highlight risk management topics (e.g., the financial crisis of 2008). In addition, we will go through in-class applications of digital tools including Python/R and Excel. This will allow students to further hone their programming and modeling skills in a supervised environment.

Excercises and Assignments

1. Group Assignments - A primary way to evaluate student's learning will be the use of group assignments, this is especially true for topics that are unable to be evaluated in an exam setting (e.g, the use of software tools). Students are given the opportunity to value derivative securities, discuss how risk management adds value, and model hedging strategies and risk measures in real-world cases. Students use digital tools (e.g., Python/R) and multiple estimation methods (e.g., Monte Carlo) in order to complete the assignments, giving them a practical implementation of their knowledge regarding models, estimation, and software. Finally, the assignments allow students to work together in a team environment creating useful practical skills in writing, time management, and coordination.
2. Practice Problems - Outside of group assignments students are also given numerous practice problems in order to self-assess their own learning. These are provided at the end of each major topic and generally consist of select questions from the primary textbooks as well as mock exams.

Exams

• A majority of the assessment of the students' learning will come from a written exam. The exam will evaluate the knowledge, skills, and general competencies of the students. This will include how risk management adds value, the theory and application of derivatives pricing and markets, understanding of financial failures and crises, basic calculations of risk measures, the various risks financial institutions face, and the application of risk management tools.