Course Overview

A derivative is a financial contract which derives its value from the performance of another entity such as an asset, index, or interest rate, called the “underlying”.. Derivatives include a variety of financial contracts, including futures, forwards, swaps, options, and variations of these such as caps, floors, collars, and credit default swaps.

Risk management is the identification, assessment, and prioritization of risks followed by coordinated and economical application of resources to minimize, monitor, and control the probability and/or impact of unfortunate events^[1] or to maximize the realization of opportunities. the risk management method is in the context of project management, security, engineering, industrial processes, financial portfolios, actuarial assessments, or public health and safety.