Investment Risk Assessment and Mitigation

This week’s topics

Investment Risk Assessment and Mitigation

1. Value at risk (VaR) and stress testing
2. Derivative hedging strategies
3. Portfolio diversification techniques
4. Credit and liquidity risk management
5. ACCA AFM | Financial Risk Management | Value at risk VAR and Futures | Lecture 33
6. CIMA P3 Hedging techniques for interest rate risk
7. 4. Portfolio Diversification and Supporting Financial Institutions
8. Moody's KMV Model
9. The Use of Loss Given Default (LGD) - Deloitte

What you will be able to do

• 5.2 Evaluate a range of risk mitigation methods used in investments.
• 5.3 Analyse practical risk mitigation methods.

Activity

Start with this week’s 5 videos, then: Seminar, guided reading and a short written task: evaluate a range of risk mitigation methods used in investments.

Study materials

Videos

• ACCA AFM | Financial Risk Management | Value at risk VAR and Futures | Lecture 33 · YouTube · Tutor Star · 36 min · for registered students
• CIMA P3 Hedging techniques for interest rate risk · YouTube · OpenTuition · 31 min · for registered students
• Moody's KMV Model · YouTube · TU Delft · 13 min · for registered students
• The Use of Loss Given Default (LGD) - Deloitte · YouTube · TU Delft · 8 min · for registered students

Further resources

• MIT 15.401 Finance Theory I, lecture notes: Portfolio Theory · PDF · Other, slides · for registered students
• Risk Management for Enterprises and Individuals, ch. 5: The Evolution of Risk Management: Enterprise Risk Management · PDF · Saylor Academy, textbook chapter; pp. 185–229 · for registered students