Overview

The IIMBx MOOC Banking and Financial Markets: A Risk Management Perspective taught by Prof PC Narayan is designed for graduates and professionals in the Banking and Finance sector to enable them to be competent decision-makers from a risk management perspective. It will equip them with the required knowledge about various risk factors and regulatory policies concerning their markets.

Banking and financial markets encompass an ecosystem that channelizes money from those who have it i.e. savers/investors to those who need it i.e. borrowers. This ecosystem also facilitates a cross-border flow of funds through the exchange of currencies. Over the past years, this ecosystem of banks and financial markets (including Central Banks) has deepened in size, sophistication, and complexity. However, in recent times, they have also been the subject of abuse, failures, and economic distress in several countries resulting in a ‘contagion’ that has concurrently affected several countries around the world.

More recently, due to the liberalisation of most economies, the world has witnessed an exponential increase in the free flow of capital across countries. Banking institutions and financial markets, which form the predominant conduit for such a free flow of capital across countries, have, therefore, become even more globally interconnected. Such a globally interconnected financial system—combined with regulatory systems that are country-specific and, hence, varying considerably in rigour and implementation—has further compounded the risks and the consequent contagion, as witnessed in the global financial meltdown that was triggered in 2008.

In the backdrop of this context, it becomes all the more important for organisations to look at banking and financial markets from a risk management perspective.