Course Description

BU439 Financial Risk Management for Insurance Enterprises 0.5

Financial risk management has become an important means by which financial institutions protect themselves against adverse effects of uncertainty caused by fluctuations in interest rates, exchange rates, commodity prices and equity prices. This course analyzes specific risks to which insurers are exposed, introduces popular measures for assessing these risks and describes the techniques used to manage resulting exposure. Subjects to be covered include financial risk versus insurance risk, risk management and firm value, interest rates and term structure theories, duration and convexity, interest rate derivatives (futures, options, swaps, caps/floor) and hedging, risk based capital, value at risk and dynamic financial analysis.

Prerequisite: BU393.

Exclusion: BU493s.

Official electronic version updated at 10:33 a.m. March 31, 2005

M Watson, Editor Class Timetable