The 2008 global financial crisis which acquired unparalleled proportions inflicted long-term damage on economies, countries and people throughout the world.
This was not a unique event. Throughout history we have observed many banking crises, currency crises, bubbles and crashes. But what can we learn from these events? To quote Winston Churchill “Never let a good crisis go to waste”.
One issue the crisis highlighted was the need to improve risk management strategies throughout the financial services industry.
So what is risk management? Risk management is a two-step process. Firstly determine what risks exist and secondly manage those risks.
Risk management occurs everywhere in the financial services. It occurs when an investor buys low-risk government bonds over more risky corporate debt, when fund managers hedges their currency exposure with currency derivatives and when a bank performs a credit check on an individual before issuing them a personal line of credit.
To learn more about this critical issue you should enrol in Managing Risk. This subject comprises four topics – a capstone topic ‘Financial Risk Management’, which provides a high-level overview; followed by three more detailed topics from each of the key risk classifications – credit risk, market risk and operational risk