Everyone working in business needs to understand and manage risk. This unit provides the basic knowledge and tools needed to do this. It includes material on the risk management strategies that every business needs, as well as specific quantitative and statistical techniques for evaluating risk. Through this unit students learn how different aspects of risk management fit together (like Value-at-Risk (VaR) and tail-VaR calculations, Monte-Carlo simulation, extreme value theory, individual and collective risk models, credibility theory and credit scoring).
1x 2hr lecture and 1x 1hr tutorial per week
assignment 1 (10%), assignment 2 (10%), assignment 3 (10%), mid-semester exam (15%), group assignment (15%), final exam (40%)
QBUS2810 or DATA2002 or ECMT2110Prohibitions