VTU MBA Risk Management Notes

Hi buddy I am doing MBA from VTU university and here looking for Risk Management paper notes/syllabus , so would you plz provide me same ??

[Rajkumar Agarwal]

As you doing MBA from VTU university and here looking for Risk Management paper notes/syllabus , so on your demand here I am providing same for you:


MODULE 1
(4 Hours)
Over view of Risk, Risk identification, Risk, Insurance and Management: Introduction to Risk and Insurance.
Risk identification and Risk Evaluation,
Risk assessment & Management- Risk analysis: Exposure of physical assets, financial assets, and Human assets,
Exposure to legal liability. Risk Management, Risk control.


MODULE 2
(7 Hours)
Risk Management using futures and forwards differences-valuation of futures, valuation of long and short
forward contract. Mechanics of buying &selling futures, Margins, Hedging using futures -specification of
futures -Commodity futures, Index futures interest rate futures-arbitrage opportunities.


MODULE 3
(8 Hours)
Risk Management using Swaps: Mechanics of interest rate swaps –volatility of interest rate swaps –currency
swaps –valuation of currency swaps.


MODULE 4
(10 Hours)
Risk Management using Options: Types of options, option pricing, factors affecting option pricing – call and
put options on dividend and non-dividend paying stocks put-call parity-mechanics of options- stock options-
options on stock index- options on futures – interest rate options. Concept of exoctic option.
Hedging & Trading strategies involving options, valuation of option: basic model, one step binomial model,
Black and Scholes analysis, option Greeks. Arbitrage profits in options

MODULE 5
(7 Hours)
Commodity derivatives: commodity futures market-exchanges for commodity futures in India, Forward
markets, commissions and regulation-commodities traded – trading and settlements – physical delivery of
commodities.


MODULE 6
(7 Hours)
Interest rate markets-Type of rates, Zero rates, Bond pricing, Determining Zero rates, Farward rules, Farward
rate agreements (FRA), Treasury bond
& Treasury note futures, Interest rate derivatives (Black model).


MODULE 7
(5 Hours)
Credit risk-Bond prices and the probability of default, Historical default experience, Reducing exposure to
Credit risk, Credit default swaps, Total return swaps, Credit spread options, Collateralized debt obligation.

MODULE 8
(8 Hours)
Value at Risk (VAR)-Measure, Historical simulation, Model building approach, linear approach, Quadratic
model, Monte Carlo simulation, stress testing and back testing