Financial Risk Management of Insurance Enterprises Course Review 1

What You Should Have Learned From This Course Basic Financial Risk Management Tools Motivation for studying financial risk management Derivatives Techniques used to evaluate financial risk Asset/Liability management Valuing embedded options Interest rate modeling Measuring sensitivity to interest rate risk How insurers use (or could use) financial risk management Effective duration and convexity of liabilities Dynamic Financial Analysis Securitization – Catastrophe losses and longevity Credit derivatives

Final Exam Thursday, May 10, 2007 1:30-4:30 pm 304 Lincoln Hall

How To Prepare for Final Review First and second exams Homework assignments Bring assignment 7 to the exam – questions will be based on it Class projects Lecture notes Know how to: Define financial risk management tools Perform basic calculations Explain how and why particular approaches are used

Pre-exam Office Hours 311 Wohlers Hall Wednesday 5/2 1-2:30 pm