Financial institutions, international finance and risk management

The course intends to rationalize the context in which financial decisions and assessments are formed to provide students with the ability to reason and modify rules. The course aims to teach students the construction of pricing models for goods, contracts, financial assets and risk, creating a bridge between the microeconomic decisions theory, financial pricing, and operational matters. To this aim, it will be necessary to strengthen some micro-economic instruments as well as the bases of the theory of prices and contracts in asymmetric information conditions. The aim is to teach students the ability to evaluate financial activities and/or services, distinguishing the context according to the quality of the supply and demand of the market in which one operates, possibly creating new methods of evaluation. "Quality" is a term used to summarize the degree of information of the participants, the structure of the market and the degree of competition, the objectives of the financial institution, the liquidity and obviously the risk tolerance of the various operators, the expectations. Following the Dublin criteria, the student will have to demonstrate: A) (knowledge and understanding) to have understood and be able to apply financial quantitative tools used in industry to price financial assets; B) (applying knowledge and understanding) to know the context and the assumptions necessary to use each evaluation tool, and their weaknesses. Be therefore able to propose different evaluation methods in different contexts; C) (making judgements) judgment autonomy in choosing assessment methods, including a subjective analysis of the consequences; D) (communication skills) to be able to explain the quantitative material and its assessments to specialists and also to non-experts (customers), E) (learning skills) independent learning ability to undertake subsequent studies. Considering the time constraints, topics will be dealt with in a synthetic way. Since the aim is to make the student able to translate the different problems in quantitative terms and to learn how to solve them and translate a decision in a "numerical price" according to the given context.