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1. Course Description: “Multinationality” is an important facet of modern business and it is important for managers to understand international financial development and acquire specific knowledge and skills to function in a multinational business environment. In this course we shall discuss about the Credit Risk, Market Risk, Operational Risk and Forex Risk. The instruments and determination of exchange-rates. The rates themselves are subject to change and it has profound effects on Sales, Costs, Profits, Assets & Liability Values and Individual wellbeing .Political barriers provide additional opportunities and risk when engaging in overseas borrowing and investment. Forex Risk management has the core focus in respect of the problems managers face from these currency risks and managing them for exploiting profitable business opportunities. The preparedness for implementation of Basel II & III has sensitised the banks that the maintenance of capital is emerged as dynamic concept reflecting the various risk banks undertakes during the course of their business. The objective of this course is to provide insight to the students an in-depth understanding and hands on exposure with Risk Management techniques in order to estimate the capital requirements for the Banks with the application of Basel II Approach.

2. Student Learning Outcomes

· Be able to : have basic idea about topology of risk factors, risk identification, risk measurement, risk mitigation and risk management in the financial market

· Be able to ….have basic idea about different instruments in the forex market including foreign exchange derivatives including credit and operational risk

3. Readings and References

Text Book:

International Corporate Finance: Madura ( Tenth Edition), Cenage Learning

Fundamentals of Risk Measurement: Marrison Chris, Tata McGRAW-Hill Edition 2005

Management of Financial Institutions: Meera Sharma

Asset Liability Management: T.Ravi.kumar, Vision Books

Further Readings:

A. Books :

i. Multinational Financial Management: Shapiro (Eighth Edition), John Wiley & Sons

ii. Multinational Business Finance: Eiteman, Stonehill, Moffett and Pandey (Twelth Edition), Pearson Education

iii. International Finance Contemporary Issues :M.D. Levi (Fourth / Third Edition), Routledge Paperback edition

iv International Financial Management: Eun and Resnick (Fourth Edition), 2009, Tata McGraw Hill.

v. Exchange Rates and International Finance: Copeland (Fourth Edition), 2007, Pearson Education

vi. International Financial Management: Apte (Fourth Edition), Tata McGraw Hill

vii. Multinational Finance: Butler (Second Edition), Thomson South-Western

viii. International Finance: O' Brian (Second Edition), Oxford University Press

ix. Currency Exposure & Derivatives- A.V.Rajwade –TataMcGraaw Hill

B. Magazines and Newspapers:

4. Pedagogy: Case discussion, Class Presentations, Quiz

Session -1 Forex Risk – Analysis, source and Macro Policy framework	Case study Relevant Chapters of above referred Book
Session2 3,4 Predicting Exchange rates, International parity Conditions.	Relevant Chapters of above referred Book
Sessions-5,6,7, Forex Derivatives	do
Sessions -8,9 Forex Exposure- measuring and managing the same	Case study
Session- 10,11 Exchange Rate Risk management-Corporate perseptive- (Use of Mifors, Miocs ,POS,COS etc)	Relevant Chapters-A.V.rajwade
Sessions 12,13 -Risk in International Capital Budgeting & International Funding	Relevant Chapters Case Study
Session-14 Indian Regulatory provisions for Forex risk management	A.V.Rajwade
Session 15-17 The Building Blocks of Credit Risk Management, The Objective behind the Basel II, Comparison of Basel I & Basel II Accord	Relevant Chapter of the Recommended Text Book and Reference Materials
Session 18-19 Concept of CRAR and Asset Class	Relevant Chapter of the Recommended Text Book and Reference Materials
Session 20-22 Loss Measurement of Loans and Advances Rating Models	Relevant Chapter of the Recommended Text Book and Reference Materials
Session 22 -24 Liquidity Risk	Relevant Chapter of the Recommended Text Book and Reference Materials
Session 25-27 Interest Rate Risk	Relevant Chapter of the Recommended Text Book and Reference Materials
Session 25-28 Risk Mitigation and Basel III	Relevant Chapter of the Recommended Text Book and Reference Materials

5.Evaluation : The evaluation process is divided into four components.
(a) Quiz: 20%
(b) Class Participation: 10%: This could be comprised of attendance, response and attitude in class and some group presentation exercises in class.
(c) Project : 30%
(d) End Term: 40%: The end term examination will be a closed book one based on topics covered during the entire course.

6. Academic Integrity: Students involved in academic dishonesty will receive a ZERO grade on the particular component in which the violation occurred. Academic dishonesty consists of misrepresentation by deception or by other fraudulent means such as copying or use of unauthorized aids in tests, talking during in-class examinations; aiding another student’s dishonesty; and giving false information for the purpose of gaining credits.