This course introduces participants to the foundations of risk management for financial institutions. Over the last 15 years, the management of financial risks has become a central function in banks and other financial institutions in spite of its complexity.  The coverage of financial risk management is articulated over the quantitative measure of value-at-risk which is invariably accompanied by the concepts of economic capital and market regulation via Basel I and II. Therefore, the main topics covered in class consist of economic capital, market risk, credit risk, value-at-risk, raroc, Basel II and operational risk. At the end of course, participants should have acquired a good understanding of how middle offices of banks and other financial institutions of G-10 countries go about managing market and credit risks.