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We hope you have enjoyed the first week of the course – Understanding risk management. So far we’ve introduced you to the financial markets and some key financial instruments, as …
Course: Risk Management in the Global Economy
Week 1: Closing thoughts
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 …
What is the relationship between diversification and risk?
It is helpful to differentiate between two types of risk. First, think of the risk associated with a specific company, also known as unique, idiosyncratic, unsystematic, or diversifiable risk. What …
Financial diversity, risk and systemic stability
In the financial industry as a whole, risk is spread by having different types of firms specialising in different activities. However recent changes in industry regulation have seen banks increasingly …
What are the risks of bonds and equities?
All investments come with a level of risk, but how can we deal with the risks associated with bonds and equities? In this video, Prof Pasquale Scaramozzino outlines the main …
How to Calculate the Return on Bonds
There are two main measures of return on bonds: the current yield and the yield to maturity. Current Yield The current yield, also known as interest yield or flat yield, …
What are Bonds and Equities?
The main types of financial securities are bonds and equities. Bonds Bonds are debt instruments. They are a contract between a borrower and a lender in which the borrower commits …
What are the main types of financial securities?
By financial securities, or financial assets, we mean legally binding contracts which give their owners the right to receive future payments, under specified conditions. But there are many ways of …
The Role of Financial Institutions
We often have a negative view of finance. We blame the recklessness of financial institutions and financial investors for when things go wrong in the economy. Financiers and bankers are …
How do financial markets work?
What are the main types of financial markets, and who are the main investors? From capital markets to futures markets, commercial banks to investment banks, this video introduces the main …
How can finance help cope with risk?
Financial investment almost always yields uncertain returns, so the risk is an essential aspect of finance. But how can finance help cope with risk? The modern corporation The modern corporation …
What is risk?
We face risk whenever we cannot be certain of the outcome of our actions. But what are the different types of risk that firms may face? And how does risk …
Week 1: Introduction
Why is risk management important in our global and interconnected world? How do investors deal with risk when making their financial decisions? And how can ideas from risk management be …
Week 4: Introduction
In this video, Dr Hong Bo introduces the topics covered in this week, including how to use financial tools to implement risk management in practice.