lOMoARcPSD|837380
Financial risk management - lecture 1 - F000738 A -
Keuleneer
Valuation and Risk management (Universiteit Gent)
StuDocu wordt niet gesponsord of ondersteund door een hogeschool of universiteit
Gedownload door Stefanie Deleu ()
, lOMoARcPSD|837380
Financial Risk Management
LECTURE 1 (20 nov)
Financial Instruments:
Derivatives
1. FRAMEWORK
You need a framework. The most important job of CEO? All about risk management, related to
strategy. If you know the risk → develop strategy.
1. Identification: identify the different risks
Identification: Financial (liquidity!!) and operational risks (bad governance at the top)
There are 2 types of risk: operational risk (non-financial) and financial risk.
➔ Operational risks (non-financial)
What is the most dangerous operational risk? Supply chain! Supply chain management. Biggest
problem is cyber security. Company can be hacked. Data is very important. Companies sometimes
have to close because of hacking. Bad governance is not good, this last are stupid decisions regarding
IT. Bad governance at the top is the problem. This can affect the existence of the bank. The most
dangerous of the operational risks is governance risk -> higher management takes bad/stupid
decisions.
1
Gedownload door Stefanie Deleu ()
Financial risk management - lecture 1 - F000738 A -
Keuleneer
Valuation and Risk management (Universiteit Gent)
StuDocu wordt niet gesponsord of ondersteund door een hogeschool of universiteit
Gedownload door Stefanie Deleu ()
, lOMoARcPSD|837380
Financial Risk Management
LECTURE 1 (20 nov)
Financial Instruments:
Derivatives
1. FRAMEWORK
You need a framework. The most important job of CEO? All about risk management, related to
strategy. If you know the risk → develop strategy.
1. Identification: identify the different risks
Identification: Financial (liquidity!!) and operational risks (bad governance at the top)
There are 2 types of risk: operational risk (non-financial) and financial risk.
➔ Operational risks (non-financial)
What is the most dangerous operational risk? Supply chain! Supply chain management. Biggest
problem is cyber security. Company can be hacked. Data is very important. Companies sometimes
have to close because of hacking. Bad governance is not good, this last are stupid decisions regarding
IT. Bad governance at the top is the problem. This can affect the existence of the bank. The most
dangerous of the operational risks is governance risk -> higher management takes bad/stupid
decisions.
1
Gedownload door Stefanie Deleu ()
