1. Financial Risk Management of Insurance Enterprises
Course Review 1

2. What You Should Have Learned From This Course
Basic Financial Risk Management Tools
Motivation for studying financial risk management
Derivatives
Techniques used to evaluate financial risk
Asset/Liability management
Valuing embedded options
Interest rate modeling
Measuring sensitivity to interest rate risk
How insurers use (or could use) financial risk management
Effective duration and convexity of liabilities
Dynamic Financial Analysis
Securitization – Catastrophe losses and longevity
Credit derivatives

3. Final Exam
Thursday, May 10, 2007
1:30-4:30 pm
304 Lincoln Hall

4. How To Prepare for Final
Review
First and second exams
Homework assignments
Bring assignment 7 to the exam – questions will be based on it
Class projects
Lecture notes
Know how to:
Define financial risk management tools
Perform basic calculations
Explain how and why particular approaches are used

5. Pre-exam Office Hours 311 Wohlers Hall
Wednesday 5/ :30 pm