The financial ecosystem comprising banks, financial markets, central banks and regulators has deepened in size, sophistication and complexity across countries over the last few decades. However, they have also been the subject of abuse and manipulation thanks to the rapid proliferation of complex financial products and a plethora of risk transfer instruments such as CDOs, CDS, etc. That, in turn, resulted in a ‘risk contagion’, which spiraled out of control and eventually resulted in the global financial crisis of 2008, a calamitous event that has forever significantly altered the banking and financial markets landscape worldwide.
What are the lessons learnt from the 2008 financial crisis? What is the likelihood that the world might witness a similar crisis in the future? This Professional Certificate Program, a compendium of five courses plus a ‘certification course’, will help answer those questions through an elucidation of the theories, concepts and practices that make up the complex and dynamic world of banking and financial markets and the plethora of risks embedded in that domain. How are those risks identified using tools such as ‘value at risk’ (VaR), ‘stress testing’, etc.? How are those risks minimized using hedging instruments such as futures, options, swaps, etc.? Can the stability of financial systems be ensured using ‘liquidity measures’ such as ‘cash reserves’ and ‘solvency measures’ such as ‘capital adequacy’?
This Program will also critically examine why those measures could not predict and contain the financial crisis of 2008 and to what extent can more recent global regulatory initiatives such as Basel-III (and Basel-IV?) guidelines ensure the future stability of banks and financial markets worldwide. Can those measures at all ‘ring-fence’ financial systems worldwide from a recurrence of the global financial meltdown, as witnessed in 2008!
This Professional Certificate Program is offered by IIM-Bangalore, one of the leading business schools in Asia, and taught by Prof. P C Narayan who has nearly four decades of experience and is well regarded in this field of study. It uses an array of spreadsheets and other interactive tools to help learners fully grasp and master the concepts, without getting too deeply entangled in the mathematical complexities of risk management.
This program is particularly well suited for risk management professionals who wish to up-skill themselves as well as those preparing for certification exams such as FRM, PRMIA, etc. who wish to understand risk management in Banking and Financial Markets in great detail.