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Measuring Risk

Equity, Fixed Income, Derivatives and FX

Anton Theunissen

This economics and finance course is a survey of risk measures and risk measurement practices applied to individual securities and portfolios. Students will also study risk reports of publicly traded financial institutions.

Upon completion of this course, participants will receive a certificate bearing the New York Institute of Finance (NYIF) name. A NYIF certificate is a valuable addition to your credentials, proving that you have acquired the work-ready skills that employers value.

For those who wish to learn more, students can enroll in the remaining four courses to earn the complete Risk Management Professional Certificate, backed by the New York Institute of Finance’s 93-year history.

What you'll learn

Understand beta as a measure of equity risk.
Describe duration and convexity as first and second order interest rate sensitivity / risk measures for fixed income instruments.
Explain and provide examples of linear and non-linear (‘convex’) securities.
Describe and the sensitivity measures (Greeks) for options.
Describe the various approaches utilized for determining value at risk and expected shortfall as measures of market and credit risk for portfolios.

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What's inside

Learning objectives

Understand beta as a measure of equity risk.
Describe duration and convexity as first and second order interest rate sensitivity / risk measures for fixed income instruments.
Explain and provide examples of linear and non-linear (‘convex’) securities.

Describe and the sensitivity measures (greeks) for options.
Describe the various approaches utilized for determining value at risk and expected shortfall as measures of market and credit risk for portfolios.

Understand beta as a measure of equity risk.
Describe duration and convexity as first and second order interest rate sensitivity / risk measures for fixed income instruments.
Explain and provide examples of linear and non-linear (‘convex’) securities.
Describe and the sensitivity measures (greeks) for options.
Describe the various approaches utilized for determining value at risk and expected shortfall as measures of market and credit risk for portfolios.

Syllabus

Module 1: Risk by Asset Class

Lesson 1: Fixed Income Risk

Lesson 2: Derivatives Risk

Lesson 3: Credit Risk

Lesson 4: Equity Risk

Module 2: Portfolio Risk Measurement

Lesson 1: Weighted Scenarios

Lesson 2: Volatility Updating

Lesson 3: Normal Approximation

Good to know

Know what's good

, what to watch for

, and possible dealbreakers

Covers fundamentals regarding asset classes, which is standard in finance

Teaches portfolio management and risk, which helps learners understand finance

Examines duration and convexity as measures of fixed income instrument and interest rate sensitivity, which is highly relevant to finance

Explores beta as a measure of equity risk, which is highly relevant to finance

Covers value at risk and expected shortfall as measures of portfolio risk, which is important in risk management

Taught by Anton Theunissen, an established instructor in finance

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Activities

Be better prepared before your course. Deepen your understanding during and after it. Supplement your coursework and achieve mastery of the topics covered in Measuring Risk: Equity, Fixed Income, Derivatives and FX with these activities:

Review accounting basics

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Accounting is the foundation of finance, so it would be a useful review before the course starts.

Browse courses on Financial Accounting

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Review basic accounting concepts such as assets, liabilities, and equity.
Solve practice problems.

Review basic calculus

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Calculus is the foundation of finance, so it would be a useful review before the course starts.

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Review limits, derivatives, and integrals.
Solve practice problems.

Watch video tutorials on financial modeling

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Video tutorials can provide a clear and concise explanation of financial modeling concepts.

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Find a set of video tutorials on financial modeling.
Watch the videos and take notes.
Try out the techniques you learned in the videos.

Five other activities

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Solve practice problems on financial ratios

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Financial ratios are a key tool for evaluating the financial health of a company, and practicing using them will help you understand the material better.

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Find a set of practice problems online or in a textbook.
Solve the problems and check your answers.
Review the problems you got wrong and try to understand why.

Join a study group with other students

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Studying with other students can help you improve your understanding of the material and identify areas where you need more help.

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Find a study group or create your own.
Meet with your study group regularly to discuss the material.
Work together on problem sets and practice exams.

Attend a workshop on financial modeling

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Workshops can provide a more in-depth understanding of financial modeling concepts.

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Find a workshop on financial modeling.
Register for the workshop.
Attend the workshop and take notes.

Read The Intelligent Investor by Benjamin Graham

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The Intelligent Investor is a classic book on value investing that can provide valuable insights into the financial markets.

View The Intelligent Investor Third Edition,... on Amazon

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Purchase a copy of the book.
Read the book carefully and take notes.
Discuss the book with other students or a financial advisor.

Write a blog post about a financial topic

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Writing a blog post will help you synthesize your knowledge of the material and improve your communication skills.

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Choose a financial topic that interests you.
Research the topic and gather information.
Write a draft of your blog post.
Edit and revise your blog post.
Publish your blog post.

Career center

Learners who complete Measuring Risk: Equity, Fixed Income, Derivatives and FX will develop knowledge and skills that may be useful to these careers:

Risk Manager

Risk Managers develop and implement strategies to minimize financial risks for organizations. This course provides essential skills and knowledge in risk measurement and management techniques across different asset classes, making it relevant to those seeking to pursue a career as a Risk Manager.

See salaries and explore the career path for Risk Manager

Risk Analyst

Risk Analysts assess and quantify financial risk, and help develop appropriate strategies to mitigate it. This course can help build a strong foundation in risk measurement and mitigation practices across asset classes, providing valuable skills for someone seeking to become a Risk Analyst.

See salaries and explore the career path for Risk Analyst

Risk Consultant

Risk Consultants provide independent advice to organizations on risk management issues. This course provides a comprehensive overview of risk measurement and management practices, which can be valuable for those seeking to become Risk Consultants.

See salaries and explore the career path for Risk Consultant

Hedge Fund Manager

Hedge Fund Managers make investment decisions for hedge funds. The topics covered in this course are central to the work of a Hedge Fund Manager, who must be able to measure and manage risk across multiple asset classes.

See salaries and explore the career path for Hedge Fund Manager

Trader

Traders assume risk by buying and selling financial instruments in order to make a profit. The risk measurement practices covered in this course are fundamental to the role of a trader, who must understand and quantify the risks associated with different investments.

See salaries and explore the career path for Trader

Financial Analyst

Financial Analysts use financial knowledge to evaluate investments. This course provides core knowledge and skills that can be directly applied to the task of evaluating equity and fixed income investments, and can be particularly relevant to those working in the Financial Services industry.

See salaries and explore the career path for Financial Analyst

Credit Analyst

Credit Analysts assess the creditworthiness of borrowers to make recommendations to lenders on whether to approve or deny a loan. The risk measurement practices, such as portfolio risk measurement and stress testing, are relevant to the role of a Credit Analyst.

See salaries and explore the career path for Credit Analyst

Actuary

Actuaries use their knowledge of mathematics and statistics to assess financial risk. Many Actuaries specialize in specific areas of insurance or finance, and this course can provide valuable insights into topics such as portfolio risk measurement, which can be useful in actuarial work.

See salaries and explore the career path for Actuary

Quant Analyst

Quant Analysts combine financial knowledge with programming and data analysis skills to develop quantitative models. Since they typically work in the finance industry, this course provides a good basis for foundational knowledge and can help aspiring Quant Analysts gain a better understanding of the financial markets.

See salaries and explore the career path for Quant Analyst

Portfolio Manager

Portfolio Managers use their knowledge of different asset classes, including fixed income, derivatives, and equities, to manage financial investments. The topics covered in this course can help build foundational knowledge that's necessary for making informed investment decisions, and may be useful to professionals at any level.

See salaries and explore the career path for Portfolio Manager

Insurance Broker

Insurance Brokers help clients to assess and manage their insurance risks. The risk measurement techniques covered in this course may be useful for professionals in this field who need to understand how to quantify and mitigate risks for their clients.

See salaries and explore the career path for Insurance Broker

Regulatory Analyst

Regulatory Analysts monitor regulatory changes and identify risks and opportunities for their organization. The risk measurement practices covered in this course may be useful for individuals in this role who need to understand how to measure and mitigate regulatory risks.

See salaries and explore the career path for Regulatory Analyst

Compliance Analyst

Compliance Analysts ensure that their organization is adhering to appropriate regulations and best practices. The risk measurement techniques covered in this course may be useful for those in this role who need to understand how to measure and mitigate compliance risks.

See salaries and explore the career path for Compliance Analyst

Investment Banker

Investment Bankers provide financial advice to their clients, which may involve helping them to raise capital, merge with other companies, or make strategic investments. This course can be useful for professionals in this field who need to understand how to measure and manage financial risks.

See salaries and explore the career path for Investment Banker

Financial Planner

Financial Planners help individuals and families plan for their financial future, including retirement, education, and more. This course may be useful for someone in this role who is seeking to gain a deeper understanding of risk management practices in order to provide better financial advice to their clients.

See salaries and explore the career path for Financial Planner

Reading list

We've selected 19 books that we think will supplement your learning. Use these to develop background knowledge, enrich your coursework, and gain a deeper understanding of the topics covered in Measuring Risk: Equity, Fixed Income, Derivatives and FX.

Fundamentals of Futures and Options Markets, Global...

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A comprehensive textbook on derivatives, providing a thorough understanding of the pricing, hedging, and risk management of options, futures, and other derivative instruments.

Fundamentals of Futures and Options Markets, Global...

Paperback

$$$

Fixed Income Securities

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Provides an in-depth look at the valuation, risk management, and analysis of fixed income securities. It covers topics such as bond pricing, yield curves, credit risk, and duration analysis.

Fixed Income Securities: Tools for Today's Markets...

Hardcover

$$$

Fixed Income Securities: Tools for Today's Markets,...

Paperback

$$$