Risk analysis is the process of assessing the uncertainties associated with any situation. For example, if a person is taking a vehicle insurance policy, the insurance company is taking a risk of that person having an accident and a consequent need to pay the insurance. Risk in the financial context defines the contours of a transaction and sets the expectation for both the buyer and seller. Analyzing risk is important both from a buyers and sellers viewpoint in any transaction. The buyer is typically an institution/bank/individual who holds the bond/debenture. The seller is the entity, which is raising the money for its proposed projects.
Learning ObjectiveThe course is targeted at students of finance, and professionals in the field of risk management, project appraisal, finance, accounting, or business administration who want a deeper understanding of these concepts.