According to the educational goals declared for the graduate program, the course analyses the main risks faced by financial intermediaries, their origin, definition, evaluation, management and protection strategies, implications for capital requirements and for governance. Specific attention is devoted to risk management banks and in insurance companies. Furthermore, the course will analyse the role that financial intermediation may play in driving the economic system through the delicate processes of social, ecological and technological transition and how the intermediaries themselves are involved in these processes.After completion of the course, the student will be able to face, with a suitable technical toolkit and an analytical approach the main problems related to risk management in financial intermediaries. He/she will be able to interpret the evolution processes in financial systems with reference to the national and international contexts.
In order to make the learning process more efficient, best if students have taken the following undergraduate courses: Management of financial intermediaries, Financial systems and instruments, Financial markets for corporate and retail clients
Lectures, excercises, discussion of papers. Group works may be organized, if the conditions are suitable (n. of attendees and lecture mode).
Written exam. This allows the student to show both knowledge and ability to critically analyse facts and issues. Each module will be tested separately with open and multiple choice questions. An essay preparation might be requested. The final grade is the average of the grades of each module. Eventual in-class assignments may be part of the evaluation.
MODULE 1: Banking and insurance intermediation: goals, role in the economic and social system, management profiles, focus on risk exposure. Credit risk: definition, elements, management approaches, protection strategies and tools. Liquidity risk, operational risk.
MODULE 2: Interest rate, market risks in banks and insurance companies. The typical technical risk of insurance companies and its management.
MODULE 3: Capital requirements in bank and insurance companies. Hot topics and recent developments in bank and insurance systems in Italy, in Europe and worldwide.
Program for the 6 CFU course: Modules 1 and 2.
