Financial risks in banking system and insurance sector, Types of risks: market risk, credit risk, operational risk, liquidity risk, leverage, model risk, climate risk; Value-at-Risk (VaR) and conditional VaR; Regulations, basel norms, solvency directives, capital requirements; Market risk, market risk VaR using historical simulation and model-building approach; Credit risk, default probabilities, credit VaR, credit derivatives; Operational risk, loss-severity and loss frequency; Managing risk for bond portfolios, Duration, Convexity.