Portfolio and Risk Management

Start Date: 07/05/2020

Course Type: Common Course

Course Link: https://www.coursera.org/learn/portfolio-risk-management

About Course

In this course, you will gain an understanding of the theory underlying optimal portfolio construction, the different ways portfolios are actually built in practice and how to measure and manage the risk of such portfolios. You will start by studying how imperfect correlation between assets leads to diversified and optimal portfolios as well as the consequences in terms of asset pricing. Then, you will learn how to shape an investor's profile and build an adequate portfolio by combining strategic and tactical asset allocations. Finally, you will have a more in-depth look at risk: its different facets and the appropriate tools and techniques to measure it, manage it and hedge it. Key speakers from UBS, our corporate partner, will regularly add a practical perspective on these different topics as you progress through the course.

Course Syllabus

In this introductory week, you will first be presented with a few mistakes you will no longer make after following this course. In order to avoid making these mistakes, you will start by gaining a foundation and understanding of the three main types of information we need in order to build optimal portfolios: expected returns, risk and dependence.

Coursera Plus banner featuring three learners and university partner logos

Course Introduction

Portfolio and Risk Management Have you ever wondered how financial professionals make their estimated $200,000 portfolio? Fundamentals of risk management are taught to all financial professionals, regardless of their financial background. This course will introduce you to the primary risk factors for your portfolio. You will learn about the different types of asset classes, their trading volumes, and how they can affect your financial future. You will also learn about margin financing, trade financing, and the various types of derivative contracts. You will also learn about asset pricing models. This course is the foundation for all of your future asset allocation decisions. Upon completing this course, you will: 1. understand the different types of asset classes that financial professionals hold 2. be able to recognize and describe the different types of transactions that occur in a portfolio 3. be able to identify the different types of trading that take place within a portfolio 4. be able to describe the impact of different types of transactions in a portfolio 5. be able to identify the impact of margin financing on a portfolio's financial health 6. be able to describe the impact of trade financing on a portfolio's financial health 7. be able to differentiate between a broker-dealer and an investment company LIMITED TIME OFFER: Subscription is only $39 USD per month for access to graded materials and a certificate.Week 1: Introduction to Portfolio and Asset Management Week 2: Risk Management and Portfolio

Course Tag

Portfolio Theories Risk Management Value At Risk (VAR) Portfolio Optimization

Related Wiki Topic

Article Example
Misys On 12 November 2010, Misys announced that it had reached an agreement to acquire Sophis, a provider of portfolio and risk management software.
Arabesque Partners The firm’s investment strategy uses extra-financial (ESG) information to improve portfolio quality and deliver financial outperformance. The investment process combines ESG criteria with fundamental analysis and portfolio and risk management.
Panopticon Software In May 2011, Imagine Software, a developer of software for hedge funds, asset management firms, pension funds, investment banks, prime brokers, market-makers, and sovereign wealth funds, integrated Panopticon visualizations into its portfolio and risk management system
Imagine Software (US) Imagine Software Inc., founded in 1993 in New York City, is a global provider of real-time portfolio and risk management technology and consulting solutions for the global financial community.
Markit JPMorgan Chase's FCS Corporation, a provider of syndicated loan market portfolio and risk management software and services, including the Wall Street Office family of products, was acquired by Markit in July 2008.
IT portfolio management Jeffery and Leliveld (2004) have listed several benefits of applying IT portfolio management approach for IT investments. They argue that agility of portfolio management is its biggest advantage over investment approaches and methods. Other benefits include central oversight of budget, risk management, strategic alignment of IT investments, demand and investment management along with standardization of investment procedure, rules and plans.
Financial Markets and Portfolio Management Financial Markets and Portfolio Management (FMPM) is a journal publishing original research and survey articles in all areas of finance, especially in financial markets, portfolio theory, wealth management, asset pricing, risk management, and regulation. Its principal objective is to serve as a bridge between innovative research and practical application. The readers of the journal are researcher, economists, asset managers, financial analysts, and other professionals in finance and related areas.
Credit risk Counterparty risk increases due to positively correlated risk factors. Accounting for correlation between portfolio risk factors and counterparty default in risk management methodology is not trivial.
Project portfolio management An analysis of the risk sensitivities residing within each project, as the basis for determining confidence levels across the portfolio. The integration of cost and schedule risk management with techniques for determining contingency and risk response plans, enable organizations to gain an objective view of project uncertainties.
Risk management According to the standard ISO 31000 "Risk management – Principles and guidelines on implementation," the process of risk management consists of several steps as follows:
Risk and Insurance Management Society The Risk and Insurance Management Society, Inc. (RIMS) is a professional association dedicated to advancing the practice of risk management. It was founded in 1950, and is headquartered in Manhattan. It publishes the industry-focused "Risk Management" magazine.
Coherent risk measure In financial risk management, monotonicity implies a portfolio with greater future returns has less risk.
Project risk management Project risk management remains a relatively undeveloped discipline, distinct from the risk management used by Operational, Financial and Underwriters' risk management. This gulf is due to several factors: Risk Aversion, especially public understanding and risk in social activities, confusion in the application of risk management to projects, and the additional sophistication of probability mechanics above those of accounting, finance and engineering.
The Journal of Portfolio Management The Journal of Portfolio Management is a quarterly academic journal covering asset allocation, performance measurement, market trends, risk management, and portfolio optimization. The journal was established in 1974 by Peter L. Bernstein. The current editor-in-chief is Frank J. Fabozzi (Yale University).
Governance, risk management, and compliance Governance, risk management, and compliance or GRC is the umbrella term covering an organization's approach across these three areas: Governance, risk management, and compliance.
Risk management In enterprise risk management, a risk is defined as a possible event or circumstance that can have negative influences on the enterprise in question. Its impact can be on the very existence, the resources (human and capital), the products and services, or the customers of the enterprise, as well as external impacts on society, markets, or the environment. In a financial institution, enterprise risk management is normally thought of as the combination of credit risk, interest rate risk or asset liability management, liquidity risk, market risk, and operational risk.
Financial risk management Financial risk management can be qualitative and quantitative. As a specialization of risk management, financial risk management focuses on when and how to hedge using financial instruments to manage costly exposures to risk.
Risk management For medical devices, risk management is a process for identifying, evaluating and mitigating risks associated with harm to people and damage to property or the environment. Risk management is an integral part of medical device design and development, production processes and evaluation of field experience, and is applicable to all types of medical devices. The evidence of its application is required by most regulatory bodies such as FDA. The management of risks for medical devices is described by the International Organization for Standardization (ISO) in ISO 14971:2007, Medical Devices—The application of risk management to medical devices, a product safety standard. The standard provides a process framework and associated requirements for management responsibilities, risk analysis and evaluation, risk controls and lifecycle risk management.
IT portfolio management The biggest advantage of IT portfolio management is the agility of the investment adjustments. While balanced scorecards also emphasize the use of vision and strategy in any investment decision, oversight and control of operation budgets is not the goal. IT portfolio management allows organizations to adjust the investments based upon the feedback mechanism built into the IT portfolio management.
Application portfolio management IT application portfolio management (APM) is a practice that has emerged in mid to large-size information technology (IT) organizations since the mid-1990s. Application portfolio management attempts to use the lessons of financial portfolio management to justify and measure the financial benefits of each application in comparison to the costs of the application's maintenance and operations.