Introduction to Risk Management from Coursera

What is risk? Why do firms manage risk? In this course, you will be introduced to the different types of business and financial risks, their sources, and best practice methods for measuring risk. This course will help you gauge different risk types and set risk limits, describe the key factors that drive each type of risk, and identify the steps needed to choose probability distributions to estimate risk. You will explore the history and development of risk management as a science, and financial and business trends that have shaped the practice of risk management. By the end of the course, you will have the essential knowledge to measure, assess, and manage risk in your organization.

To be successful in this course, you should have a basic knowledge of statistics and probability and familiarity with financial instruments (stocks, bonds, foreign exchange, etc). Experience with MS Excel recommended.

What's inside

Syllabus

Getting Started

This course will introduce you to different types of business and financial risk. You will learn how these risks are measured and also gain an understanding of the goals and benefits of risk management. The skills that you will gain by the end of this course will enable you to measure and manage risk in your organization.

Module 01: Overview of Risk Management

In this module, you will learn about financial and business risks. You will also get introduced to the various types of financial risks and learn about their sources and how firms manage risks. We'll also look at the difference between risk measurement and risk management. Let's get started.

Module 02: Types of Business and Financial Risks

In this module, you will learn about the four main types of financial risk. You will then learn about the best measures to use to gauge different risk types and set risk limits. You will also learn how investment managers maximize portfolio returns while keeping risk within their tolerances and then apply these techniques to a portfolio you will construct.

Module 03: Money & Capital Markets and Regulatory

In this module, you will learn the difference between Money and Capital markets. You will also learn to differentiate among the 3 regulatory structures - US, UK, and EU and understand how regulatory structures impact your firm.

Module 04: Introduction to Risk Modeling

In this module, you will learn about the factors that drive each type of risk and then use these factors to create distributions (density functions). You will explore non-parametric measures of loss distributions such as scenario analysis and stress testing.

End of Course

You've come to the end of the course. Let's wrap up with a quick summary of the key takeaways of this course.

Good to know

Know what's good

, what to watch for

, and possible dealbreakers

Provides strong foundation for beginners

Develops professional skills or deep expertise in a particular topic or set of topics

Teaches skills, knowledge, and/or tools that are highly relevant in an academic setting

Explores complex concepts, which is standard in industry

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 Introduction to Risk Management with these activities:

Read Risk Management and Financial Institutions

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Reading this book will provide you with foundational knowledge on risk management and its importance in the financial sector.

View Risk Management and Financial Institutions... on Amazon

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Read Chapter 1: Introduction to Risk Management.
Read Chapter 2: Measuring and Managing Financial Risk.
Read Chapter 3: Risk Management in Financial Institutions.

Review Probability

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Reviewing probability will help solidify your understanding of fundamental concepts used throughout the course.

Browse courses on Probability

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Go over probability axioms.
Review conditional probability, independence, and Bayes' Theorem.
Practice solving probability problems.

Form a Study Group for Risk Management

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Joining a study group will provide you with opportunities to discuss course material, share insights, and learn from your peers.

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Find classmates who are interested in forming a study group.
Set regular meeting times and locations.
Review course material together.
Discuss case studies and practice problems.

Four other activities

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Solve Risk Management Practice Problems

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Solving practice problems will help you apply the concepts learned in the course to real-world scenarios and improve your problem-solving skills.

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Review the course material on risk management.
Attempt practice problems on risk assessment, risk mitigation, and risk management strategies.
Check your answers and identify areas for improvement.

Create a Risk Assessment Matrix

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Creating a risk assessment matrix will help you practice identifying and assessing risks in a real-world scenario.

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Identify potential risks.
Assign likelihood and impact scores to each risk.
Create a risk assessment matrix.
Use the matrix to prioritize risks.

Contribute to Open Risk Management Projects

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Contributing to open-source projects will allow you to apply your risk management skills in a practical setting and connect with a community of professionals.

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Identify open-source risk management projects.
Review the project documentation.
Identify areas where you can contribute.
Submit a pull request with your contributions.

Develop a Risk Management Plan

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Developing a risk management plan will provide you with hands-on experience in applying risk management principles to a specific project.

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Define the project objectives and scope.
Identify potential risks.
Assess the likelihood and impact of each risk.
Develop risk mitigation strategies.
Monitor and review the risk management plan.

Career center

Learners who complete Introduction to Risk Management will develop knowledge and skills that may be useful to these careers:

Risk Analyst

Risk Analysts identify, assess, and manage risks within organizations. The `Introduction to Risk Management` course can be extremely valuable to Risk Analysts, as it provides a comprehensive overview of risk management principles, techniques, and best practices. This knowledge is essential for developing and implementing effective risk management strategies.

See salaries and explore the career path for Risk Analyst

Risk Manager

Risk Managers oversee the identification, assessment, and management of risks within organizations. The `Introduction to Risk Management` course is highly relevant to Risk Managers, as it provides a comprehensive overview of risk management principles, frameworks, and best practices. This knowledge is essential for developing and implementing effective risk management strategies.

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Vice President of Risk Management

Vice Presidents of Risk Management oversee and manage all aspects of risk management within an organization. The `Introduction to Risk Management` course can be extremely valuable to Vice Presidents of Risk Management, as it provides a comprehensive understanding of risk management principles, best practices, and regulatory frameworks. This knowledge is essential for developing and implementing effective risk management strategies and ensuring the organization's resilience.

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Quantitative Analyst

Quantitative Analysts develop and implement mathematical models to analyze financial data and make investment decisions. The `Introduction to Risk Management` course can be highly useful to Quantitative Analysts, as it provides a strong foundation in risk assessment, risk modeling, and statistical techniques. These skills are essential for building and evaluating quantitative models.

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Risk Consultant

Risk Consultants advise clients on risk management strategies and help them implement risk management programs. The `Introduction to Risk Management` course can be highly beneficial to Risk Consultants, as it provides a thorough understanding of risk assessment, risk management techniques, and regulatory frameworks. This knowledge is crucial for developing and delivering effective risk management solutions to clients.

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Financial Analyst

Financial Analysts provide investment advice and make recommendations to clients based on their understanding of financial markets. The `Introduction to Risk Management` course can aid Financial Analysts in gaining a deeper understanding of financial risks, risk measurement, and risk modeling, which are crucial skills for evaluating investment opportunities.

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Portfolio Manager

Portfolio Managers manage investment portfolios for clients. The `Introduction to Risk Management` course can be beneficial to Portfolio Managers, as it enhances their understanding of financial risks, risk modeling, and portfolio optimization. This knowledge is critical for making informed investment decisions and managing risk within portfolios.

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Investment Banker

Investment Bankers advise companies on mergers, acquisitions, and other financial transactions. The `Introduction to Risk Management` course can be particularly beneficial for Investment Bankers, as it provides a solid foundation in risk assessment and management. This knowledge is essential for evaluating and mitigating risks associated with financial transactions.

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Actuary

An Actuary assesses financial risk and uncertainty to provide guidance on insurance rates and coverage. The course `Introduction to Risk Management` can be an excellent resource for Actuaries, as it provides a comprehensive overview of different types of business and financial risks and explains how to measure and manage risk with effective strategies.

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Regulatory Compliance Analyst

Regulatory Compliance Analysts ensure that companies comply with industry regulations and standards. The `Introduction to Risk Management` course can be valuable to Regulatory Compliance Analysts, as it provides a comprehensive understanding of regulatory frameworks and the factors that drive risk. This knowledge is essential for developing and implementing effective compliance strategies.

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Compliance Officer

Compliance Officers ensure that companies adhere to regulatory guidelines and ethical standards. The course `Introduction to Risk Management` will guide Compliance Officers in understanding the various regulatory structures and the factors that drive risk. This comprehension is essential for making informed decisions and maintaining compliance within an organization.

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Senior Financial Analyst

Senior Financial Analysts provide strategic financial advice and guidance to senior management. The `Introduction to Risk Management` course may be helpful to Senior Financial Analysts, as it enhances their understanding of risk management, risk assessment, and risk modeling. This knowledge is valuable for making informed financial decisions and managing risk within the organization.

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Underwriter

Underwriters assess and evaluate risks associated with providing insurance coverage. The `Introduction to Risk Management` course may be helpful to Underwriters, as it provides insights into risk assessment, risk measurement, and risk management techniques. This knowledge is valuable for making informed underwriting decisions and managing risk within the insurance industry.

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Insurance Underwriter

Insurance Underwriters assess and evaluate risks associated with insuring individuals and businesses and determine the appropriate insurance premiums. The `Introduction to Risk Management` course may be helpful to Insurance Underwriters, as it provides a thorough understanding of risk types, risk measurement, and risk management techniques.

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Credit Analyst

Credit Analysts evaluate the creditworthiness of individuals and businesses to determine their ability to repay loans. This course `Introduction to Risk Management` may be useful to Credit Analysts, as it provides valuable insights into assessing different types of risk, such as credit risk.

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