Skip main navigation

Week 1: Closing thoughts

In the closing video, Prof Pasquale Scaramozzino gives a round up of the course and our examination of risk management so far.
12.8
This week, we’ve discussed why risk is such a central aspect of finance, we have seen how financial markets work, and we’ve examined the main types of financial securities. We have also studied the risks associated with the most common securities - bonds and stocks. Risk is very pervasive in finance. And indeed, one of the main purposes of finance is to transfer risks among investors. It is important that investors are aware of the different risks that they face, and of the main factors that can affect the value of their investment and that could potentially lead to large losses.
56.1
We have also seen why it is important that there is a diverse range of financial institutions in the economy which specialise in serving the needs of different categories of investors. Next week, we’ll look at a number of methods that have been developed to manage risk and to reduce the possibility of losses from an investment. Crucially, we’ll find that it is often possible to reduce risk without sacrificing the return on your investment. We look forward to exploring this with you next week.

In this closing video, Prof Pasquale Scaramozzino gives a round up of the course and our examination of risk management so far.

He also previews next week’s learning, where we will look at the number of methods that have been developed to manage risk and to reduce the possibility of losses from an investment.

This article is from the free online

Risk Management in the Global Economy

Created by
FutureLearn - Learning For Life

Our purpose is to transform access to education.

We offer a diverse selection of courses from leading universities and cultural institutions from around the world. These are delivered one step at a time, and are accessible on mobile, tablet and desktop, so you can fit learning around your life.

We believe learning should be an enjoyable, social experience, so our courses offer the opportunity to discuss what you’re learning with others as you go, helping you make fresh discoveries and form new ideas.
You can unlock new opportunities with unlimited access to hundreds of online short courses for a year by subscribing to our Unlimited package. Build your knowledge with top universities and organisations.

Learn more about how FutureLearn is transforming access to education