This course is for students expecting to work in finance, particularly those who would like to work for a bank, insurance, or other large financial institution. This course addresses the way companies, particularly financial institutions, manage risk. It covers credit risk, market risk, operational risk, and model risk. The nature of bank regulation and the Basel capital requirements for banks are examined. Other topics include copulas and the calculation of economic capital. The course also covers recent regulatory changes and macroprudential policies that have significant impacts on the Canadian and international capital markets.