Risk Management in Financial Institutions

This course provides a rigorous introduction to risk management in financial institutions, emphasizing the theory, measurement, and empirical applications of financial risk. Students will learn to identify, quantify, and manage market and credit risk using modern statistical tools. Practical implementation with adequate software and critical evaluation of Value-at-Risk (VaR) and other methods will be highlighted throughout the course. MAT ACS Advanced Actuarial Mathematics (3.0); 3 cr. This course covers: Multiple Life insurance and Annuities (paid in advance, in arrears or continuous) for a whole life, term or deferred period; Multi-Entry Models using Markov Chains to evaluate the pricing, reserving and profit for various health and retirement plans; Estimation of mortality rates using complete and censored data and using the rates to construct Mortality Tables; Profit measures and determination of total profit and profit by source; Non-conventional insurance products such as Universal Life and Participating Insurance that allow for flexible premium payments and withdrawal possibilities.