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PC NARAYAN: The financial ecosystem in any country comprising
banks and financial markets, central banks and regulators
has deepened in size, sophistication, and complexity
over the last few decades.
The benefits of such a sophisticated financial ecosystem
are real and visible in most countries around the world.
However, the risks associated with increasingly complex financial products
and instruments, including a plethora of risk transfer instruments offered
by banks and financial market entities, have resulted
in several unintended consequences.
They've also been the subject of abuse, failures,
and economic distress in several countries with a contagion
effect on the rest of the world as we witnessed
in the global financial crisis of 2008.
Hello, my name is PC Narayan.
I've been with the Indian Institute of Management Bangalore
for the last 14 years engaged in teaching, research,
and consulting, primarily in the area of banking and finance.
In this professional certificate program titled
Risk Management in Banking and Financial Markets,
we will first look at the structure and role
of banks and financial intermediaries, the underlying theories and practices,
as well as the risks embedded in banking and financial intermediation.
As well as regulation and monetary policy
and the Basel guidelines on capital adequacy.
Thereafter, we will study at length each of the financial markets, money
markets, debt markets, equities stock markets, foreign exchange
markets, venture capital and private equity markets, and so on.
We will comprehend the underlying theories, the structure and functioning
of each of those markets, the instruments traded,
as well as the trading and settlement practices in those markets.
The many risks that are embedded in each of those markets
and how do they impact the profitability, the liquidity,
and solvency not only of the participants,
but of the market as a whole.
We will also study the various methods used
to identify, assets, manage, and whenever possible,
mitigate those risks.
We will also look at derivative instruments
and how these instruments are used in each of those markets,
either to hedge against or to speculate and profit from those embedded risks.
Further, we will look at several special topics
such as structured financial products, as well as contemporary risk management
techniques, such as value-at-risk, stress testing, et cetera, that
are resorted to by financial market participants
to proactively manage risks often at the behest of the regulator.
We will also critically examine the Basel guidelines and capital
adequacy that was intended to ensure the stability of the financial system
in every country, and evaluate to what extent have the Basel guidelines
actually achieved those objectives.
So join me in this exciting journey to demystify the complex and dynamic world
of banking and financial markets.
More importantly, to gain an in-depth understanding
of the embedded risks, how they're identified, managed, and mitigated.
I look forward to seeing you in this program.
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