25751 Financial Institution Management

Description

In this subject, students learn about the business models of banks and other financial institutions and the processes employed by them for asset-liability management, cash flow management and risk management. They also investigate how these processes allow financial institutions to meet internal, professional, regulatory and public standards in an increasingly dynamic and challenging environment. Using bank simulations, the subject develops a holistic understanding of the risks and complexities faced by financial institutions, and students learn how to make decisions under uncertainty. They also study how financial institutions learn from the observed outcomes of their decisions, as well as from the economy and the behaviour of their competitors. The subject develops measures for interest rate risk, market risk, credit risk, operational risk and liquidity risk, and introduces students to the key strategies for hedging and managing these risks.