This e-Learning course is designed for all those in the public and private sectors who need a practical introduction to risk management principles, methods and techniques. No previous knowledge of risk management will be assumed in this course. While risk management can be applied to every aspect of public and private financial activity, given the time available, the course will focus on generic risk management methods and techniques that can be easily applied by participants to their respective workplaces.

The UNITAR e-Learning Course on Fundamentals of Risk Management is designed to present the content and the tools of modern financial risk assessment and management. The content and structure of the course is designed with the aim of satisfying the needs for credit risk training especially in developing countries and emerging markets, some of which have experienced or have been affected by a huge surge of financial crisis during the last two decades. This online course is divided in five main parts, each describing and illustrating one separate area of the topic in this fundamentals course.

This fundamentals course will give a holistic overview of the principles of risk management, including definitions and misconceptions. It will also focus on risk identification, risk assessment and setting up practical and effective risk management systems.

• To introduce modern, international risk management practices; both qualitatively and quantitatively. Among others, this includes traditional techniques of credit risk management (including Value-At-Risk, simulations, and other models developed in the credit risk literature).
  
• To establish common terminology and approaches to evaluate risk and risk management in financial institutions.
  
• To analyze, together with course participants, the advantages and disadvantages of the qualitative and quantitative techniques of risk management.
  
• To discuss the international legislation as well as the country rating procedures from the perspective of developing countries and emerging economies.

This course is designed to give practitioners the theoretical understanding and practical tools necessary to identify risks, assess them and to find practical solutions to mitigate these risks.

This e-Learning Course is a fundamental course which is targeted to risk management professionals in the finance industry from developing and transition countries. This includes practicing risk managers, senior managers, and professionals from public and private finance-related institutions (e.g. members of local authorities, banks and financial institutions, and other government agencies) desiring an accessible, but thorough, introduction to the subject.
 

Proposed Agenda

MODULE 1. OVERVIEW: DEVELOPMENTS IN FINANCIAL RISK MANAGEMENT IN PUBLIC AND PRIVATE SECTORS
(Risk Management and Financial Corporations; Effects of Globalisation on Risk Management Techniques; Risk Management in Public Finance; Risk Management and Public Debt Management; Current Issues in Risk Management; and Effective techniques for Successful Risk Management)

MODULE 2. ANALYSIS OF RISK MANAGEMENT TECHNIQUES IN PUBLIC FINANCE
(Outline of Main Risk Management Tools for Public Finance; Disaster Risk Management and Government Policies; Risk Management Tools for Credit Risk, Market Risk and Operational Risk Management; Significance of Bonds in Risk Management; Liquidity Risk Management; Development Challenges and Sovereign Debt; Choice of Risk Management Tools and Processes)

MODULE 3. VALUE-AT-RISK (VaR) AND COST-AT-RISK (CaR)
(Role of VaR and CaR Models in Quantitative Risk Analysis; Calculation of VaR by Mathematical Formulae; Strengths and Weaknesses of VaR and CaR Techniques; Methods to Remedy Shortcomings of VaR and CaR; Concept of Risk-Adjusted Return on Capital (RAROC) and Risk-Adjusted Profitability)
 

This course is designed as an online course in which participants will be primarily responsible for their own learning. Each lesson will consist of the following components:

1) Basic Reading Materials (Compulsory Reading Materials): these materials are intended to educate the participants about the basic concepts and principles applicable to the subject-matter of the lesson. It will include, where appropriate, sample materials. These materials will constitute the required reading materials for the lesson

2) Advanced Reading Materials (Optional Reading Materials): this will consist of optional reading materials for participants who wish to learn more about the topic than what is covered in the lesson.

3) External Links: This will refer the interested participants to additional books, articles, documents, and websites that deal with the issues raised in the lesson.

4) Glossary: A glossary of terms tailored to the online course will be provided to the participants and act as a learning support during the entire course.

5) Quizzes: At the end of each lesson there will be a set of quizzes for participants to answer. These quizzes are designed to test the participant's understanding of the lesson. Participants are required to pass each quiz and obtain at least 80% or more passing grade in order to be eligible for a certificate. All quizzes will need to be taken online.

6) Community Discussion Board: There will be a community discussion board available on which participants can post questions or comments that can be seen by the instructor and the other participants. This discussion board will be moderated by the course director and UNITAR. Structured discussion strings will be posted on a weekly basis.

All successful participants will be eligible to a certificate after completion of this online course.