Introduction
This course focuses on the quantitative techniques essential for assessing and managing risks in complex organisational settings. The course introduces learners to foundational concepts like operational risk and Basel II’s principles, and advances to sophisticated models including Value-at-Risk (VaR), Conditional Value-at-Risk (CVaR), and Entropic Value-at-Risk (EVaR). Learners will apply these models in organisational contexts, exploring scenarios involving Knightian uncertainty, the Ellsberg paradox, and Black Swan events. The course includes financial models such as the Black-Scholes model, teaching students to interpret and utilise these techniques in decision-making processes. By the end, learners will be adept in using data-driven models to identify, assess, and mitigate financial and operational risks effectively.
Learning Outcomes
