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1. Course Description: Broadly, Credit Risk, Market Risk and Operational Risk will be discussed. 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 quantify the risk of instruments, Corporates, Retail Borrowers.

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 and instruments.

· Be able to ….have basic idea about risk rating models adopted by different rating agencies.

3. Readings and References

Text Book:

Risk Management and Financial Institutions, 4th Edition by John C.Hull

Further Readings:

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

B. Magazines and Newspapers:

4. Pedagogy: Case discussion, Class Presentations, Quiz

Session 1-3 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 Material Case Study
Session 4-6 Concept of CRAR and Corporate Rating Model Rating Model	Relevant Chapter of the Recommended Text Book and Reference Materials
Session 7-9 Loss Measurement of Loans and Advances Rating Models, Base Rate and Risk Based Pricing of Loans	Relevant Chapter of the Recommended Text Book and Reference Materials Case Study
Session 10-11 Liquidity Risk	Relevant Chapter of the Recommended Text Book and Reference Materials Case study
Session 12-13 Trading Risk of Financial Instruments	Relevant Chapter of the Recommended Text Book and Reference Materials
Last Session Risk Mitigation Techniques, Sovereign Risk Rating	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%: