1. RMBI 5M6Z0074 2013/14 Risk Management in Banking & Insurance 2014 / 15 Graeme Elgin NBS 4.38 Ext.3766 g.elgin@mmu.ac.uk

2. RMBI 5M6Z0074 2013/4 Course Structure Delivery Modes  Lectures / Super Tutorials  Tutorials  Moodle Modes of Assessment 1.Assignment - 2,000 words (40% of total unit mark) 2.Final Examination (60% of total unit mark) Staffing Lectures / Tutorials – Graeme Elgin E-mail – g.elgin@mmu.ac.ukg.elgin@mmu.ac.uk NBS 4.380161- 247- 3766 Tutorials - Joanne Bambrick E-mail – j.bambrick@mmu.ac.uk@mmu.ac.uk 0161-247- 1016

3. RMBI 5M6Z0074 What is Risk Management? “Risk Management is a formal process that enables the identification, assessment, planning and management of risks” (2008) Merna, T., Al-Thani, F.

4. RMBI 5M6Z0074 So what’s in it for me? Ability to… critically appraise conceptual, organisational, regulatory and environmental perspectives on risk identify and evaluate the principal risks in banking and insurance evaluate the impact of regulatory initiatives on the management of risk analyse the performance of managerial and operational strategies to manage risk engage in independent research to evaluate the effectiveness of risk management initiatives and their impact in the financial services sector

5. RMBI 5M6Z0074 2014 / 15 Case Studies Robert Citron Orange County $2.3 bn $1.6 bn €4.9 bn Jerome Kerviel Societe Generale Kweku Adoboli UBS

6. Programme Outline Weeks 1- 11 The financial crisis 2007-8 Risks & risk management Risk measurement (VaR) Enterprise-wide risk management (EWRM) Banking regulation (Basel III) – The Vickers Report Bank Culture & Ethics Credit risk management Securitisation and capital management

7. Programme Outline Week 7-11 Operational risk Liquidity risk Derivative products Insurance company operations and risks Financial aspects of insurer operations Insurance contracts and pricing Investment of insurance funds Regulation of the insurance industry (Solvency II)

8. Questions??????? E-mail – g.elgin@mmu.ac.ukg.elgin@mmu.ac.uk NBS 4.38 0161- 247- 3766 j.bambrick@mmu.ac.uk 0161- 247- 1016