Overview

Google, IBM & Meta Certificates — All 10,000+ Courses at 40% Off

One annual plan covers every course and certificate on Coursera. 40% off for a limited time.

Learn how financial institutions measure risk, apply hedging strategies, and analyze derivatives markets using modern financial risk management techniques. Develop practical skills in stress testing, futures pricing, options analysis, and structured finance evaluation. This course provides a comprehensive introduction to financial risk models and derivatives market analysis used in banking, investment management, and risk management functions. You’ll begin by exploring risk measurement frameworks including stress testing, scenario analysis, valuation models, and regulatory approaches used to monitor market exposure and financial stability. As the course progresses, you’ll learn how financial institutions manage interest rate and portfolio risk using duration, DV01, hedge ratios, and derivative instruments. The course also explains practical hedging techniques and how futures and options contracts are used to mitigate market uncertainty and support investment strategies. Advanced modules focus on derivatives pricing, arbitrage mechanisms, market participants, clearinghouses, and counterparty risk management. You’ll also examine options payoff structures, commodity market behavior, and structured finance products such as mortgage-backed securities to understand how complex financial instruments are modeled and evaluated. What makes this course unique is its integration of theoretical financial risk models with practical derivatives market applications. By the end of the course, you’ll be able to analyze market risk exposure, evaluate hedging strategies, interpret derivatives pricing mechanisms, and understand how modern financial institutions manage uncertainty in global financial markets.

Syllabus

Foundations of Risk Measurement and Valuation

This module introduces the fundamental concepts of financial risk measurement and valuation models used in modern risk management. Learners explore core techniques such as stress testing, scenario analysis, and regulatory frameworks while understanding how financial institutions assess and manage risk exposure in dynamic markets.

Hedging and Risk Sensitivity Analysis

This module explores how financial institutions and investors manage market risk through hedging strategies and sensitivity analysis. Learners examine practical approaches to hedging interest rate and portfolio risk while understanding the role of duration, hedge ratios, and derivative instruments in risk mitigation.

Strategic Risk Management and ERM

This module focuses on the strategic principles of risk management and the implementation of Enterprise Risk Management (ERM) frameworks. Learners examine risk governance practices, organizational risk culture, and the benefits of integrating risk management across business functions.

Scenario Analysis and Market Foundations

This module introduces advanced scenario analysis techniques and behavioral finance concepts while providing a foundation for understanding financial markets and products. Learners explore how market participants interact and how behavioral biases influence financial decision-making.

Derivatives Payoffs and Market Infrastructure

This module examines the payoff structures of derivative contracts and the key participants involved in financial markets. Learners explore the roles of counterparties, clearinghouses, and central counterparties in reducing systemic risk and ensuring market stability.

Practical Hedging and Futures Pricing

This module focuses on practical hedging strategies and the pricing mechanisms of futures contracts. Learners analyze hedge ratios, equity hedging techniques, and the role of arbitrage in maintaining price alignment between spot and futures markets.

Options, Commodity Markets and Structured Products

This module explores the characteristics of options, commodity markets, and structured financial products. Learners examine option pricing factors, commodity market dynamics, and the modeling of mortgage-backed securities used in structured finance.