Enroll Course: https://www.udemy.com/course/understand-financial-risks-from-banking/
Navigating the world of finance, particularly within the banking sector, can often feel like deciphering a complex code. For professionals looking to bridge the gap in their financial knowledge, especially those without a formal background, finding the right learning resources is crucial. The Udemy course, ‘Understand Financial Risk from Banking,’ aims to do just that – to lift the veil of complexity and make financial risk understandable.
This course is designed for professionals who want to deepen their understanding of bank business models and enhance their careers in the banking industry. It also offers significant value to those working in other financial institutions like pension funds, insurance companies, and investment firms. A particularly insightful aspect is its introduction to Asset & Liability Management (ALM), as risk management is a core function of the Asset & Liability committee (ALCO).
The course breaks down the fundamental concept that banks are essentially ‘risk factories,’ profiting from the management of risk. It provides an overview of core banking activities and their associated risk exposures. The curriculum then dives into the management of three key financial risks: liquidity risk, interest rate risk, and credit risk.
Under interest rate risk, the course explains how to calculate net interest income and explores different interest rate transformation mismatches (neutral, net asset, net liability). It also teaches how to interpret yield curves and forward rates, essential tools for understanding market expectations.
For liquidity risk, learners will discover mitigation strategies such as using buffers, repurchase agreements, securities, and money market programs. The course also touches upon supervisor intervention during money market crises and the role of minimum supervisor standards like the Liquidity Coverage Ratio (LCR) and Net Stable Funding Ratio (NSFR).
Credit risk is addressed by detailing how to calculate expected losses from debtor risk, including the impact of credit spreads. Mitigation techniques like netting and collateral are also covered.
Beyond these specific risks, the course delves into the organization of risk management within a bank and the importance of buffers like capital and provisions to absorb losses. To reinforce learning, the course includes 45 multiple-choice questions to test knowledge. As a bonus, students receive a free PDF copy of ‘Understand Banks and Financial Markets,’ a testament to the instructor’s other successful Udemy offerings.
What makes this course particularly recommendable is its accessibility. The instructors emphasize that no prior financial knowledge is required, making it truly open to everyone. The course also offers free preview sections, allowing potential students to assess its suitability before committing. If you’re looking to gain a solid grasp of financial risk in banking, this Udemy course is a highly recommended starting point.
Enroll Course: https://www.udemy.com/course/understand-financial-risks-from-banking/