A Complete Course in Risk Management

In an uncertain, complex world with increased risks from societal, environmental and operational factors the role of a future ready Risk Manager is critical for any successful business. Gain confidence and control with this Risk Management course at Imperial College London situated at the heart of the world's financial capital. The programme is five intensive days that will challenge you to think creatively about finance and risk; it will compel you to overturn existing patterns; it will ultimately make you and your organisation more competitive and sustainable.

Our experienced team will guide you and your international peers towards the development of financial foresight enabling the prediction of new societal, financial, corporate and environmental risks. Starting with the management of risk in finance, risk measurement, markets and financial instruments you will learn practical ways to measure and hedge risk applicable to your organisation, enabling powerful business decision making and an ability to face up to regulatory risk.

This risk management training is for those seeking to become a more complete Risk Manager. Senior professionals engaged with any aspect of risk management looking to blend technical skills, quantitative research and intelligent risk strategies with newly developed financial intuition to broaden their risk management abilities. Participants will be required to have good quantitative skills.

Introduction to Risk Management - The Big Picture:

• A brief history of risk management
• Risk management - the big picture
• Simulation of risk management under pressure - Carbon capture lab

This module will provide a big picture overview of risk management and highlight key issues in bank and asset management risk management. It will introduce issues the key risks facing financial services companies and other corporates. The second part of the module will involve a risk management simulation in Imperial's capture lab. The simulation will make risk management tangible as participants will need to make risk management decisions under pressure, communicate effectively within their team, their company and externally while solving the crisis at hand.

Module Outline:

Session I (Instructor: Robert Kosowski (Imperial College Business School) - Back to the Future: the only certainty is risk a brief history - Risk - integral to Financial institutions DNA, but what does it really mean? - The main risks affecting financial companies and other corporates - People, processes, Operational risk

Session II (Instructor: Guy Gumbrell (Imperial College Business School)):

• Carbon Capture Lab simulation
• Risk management communication and decision making under pressure
• What finance can learn from risk management in the energy industry
• Novel technologies, information asymmetries and risk management

Foundations of Risk Measurement:

• Statistics for Risk: Mean, Variance, Correlation, Skewness
• Basic rules of probability
• Probability Distributions Useful for Risk and Financial Models.
• Linear Regressions and Risk Modeling Fundamentals

This module offers an overview of the essential tools of statistical analysis used in the quantitative analysis of financial instruments and risk management. These tools are all used in downstream modules of the Risk Management course. The mathematical prerequisites are similar to those of a newly admitted MBA student, and prior knowledge of statistics and probability is not assumed.

Module Outline:

Session I (Instructor: Paolo Zaffaroni (Imperial College Business School))

Descriptive Statistics:

• Numerical descriptive measures (measures of central tendency and of dispersion)
• The empirical rule (the central limit theorem)
• How to relate two things (covariances and correlations)

Session II (Instructor: Paolo Zaffaroni (Imperial College Business School)):

• Linearly related variables (mean and variance of portfolios)
• Linear regression model
• The p.d.f. and the c.d.f., The normal family of distributions
• Quantiles and Value-at-risk

Welcome to Imperial College Business School, part of one of the world’s leading universities. Our elite status is recognised by our rare triple accreditation from The Association to Advance Collegiate Schools of Business (AACSB), Association of MBAs (AMBA) and European Quality Improvement System (EQUIS). We offer world renowned Postgraduate and Executive Education programmes as well as undergraduate studies for students from other disciplines. Our postgraduate offering includes MBA, Masters and Doctoral programmes as well as our recently launched Global MBA which offers a blended learning experience utilising innovative online teaching tools. By combining cutting-edge thinking and insight with new technology and a research-led approach, we are able to provide our students and staff with an inspirational environment with the aim of developing innovative solutions to real world issues.

Our position in central London, one of the world’s most important financial and cultural centres, continues to attract a high calibre of international students and staff which enhances the global learning experience. It also allows access to leading global organisations and industry experts, providing opportunities for high profile guest lectures and powerful corporate partnerships. Our continuously growing Alumni network currently has 12,000 members in over 125 countries.