Behavioural Finance in Risk Management
This course reviews the measurement and calculation of risk and return from the perspective of clients who are now living longer lives. Largely due to advances in preventing heart disease, more awareness, and healthy lifestyles, Canadians who reach age 65 are more likely than ever to live into their 90s. As a result, retirement income planning is a much longer process in which a focus on continued accumulation and investing is as important as the tax-efficient withdrawal of funds. Capital must be preserved at the same time.
Capture the underlying algebraic equations in the evaluation and management of risk and return in a pre- and post-retirement portfolio in a visual format that makes it easier to set short and long-term goals. This allows better decision-making about investing when human capital is retired and financial capital must take over in providing income. The result is greater peace of mind and the opportunity to transfer an increasing family net worth to the next generation.
What You'll Learn
You will be exposed to software and online tools that will aid in the application of the concepts discussed throughout the course. Discussions and examples of how to employ these tools will be featured throughout the course—graphically and in case settings.
You'll explore the changing environment for risk and return, and how it weighs on an ageing demographic. In addition, you'll decipher the current interest rate environment and how it manifests into increasingly complex solutions and understand how to focus on strategies for risk mitigation for pre-retirees and retirees alike.
In this course, you will learn to explain and integrate modern portfolio theory, relating it to a post-financial crisis environment that still bears a number of short and long term risk factors. You'll use financial literacy to guard against complaints around inappropriate risk tolerance or investments and evaluate a variety of risks within asset classes using a multi-dimensional approach. You'll come to understand how to use the combination of both risk and return to make more informed recommendations.
Using the power of simulations and modelling, as well as a defined process for goal setting and financial assessments, you will learn to explain the most powerful financial concepts to predict and evaluate risk and return in the retirement period. You'll use current data to make investment decisions and then monitor changes in personal net worth as a result of sound decision-making.
Measuring and Calculating Returns
Correlation & Beta
Calculating Portfolio Risk
The Efficient Frontier
The Capital Asset Pricing Model
Generating Risk-Adjusted Returns
Indexing and the ETF Evolution
Software Tools for Portfolio Analysis
Portfolio Management in the Context of the Current Market
Personal course selection consultation
Virtual campus orientation
Lesson and study plans
Personal instructor email support
Comprehensive Knowledge Journal
EverGreen Online Research Library
Knowledge Bureau calculators
Testing and certification
Work towards the MFA™ Designation
The Behavioural Finance in Risk Management is 1 of 6 courses needed for the MFA (Retirement & Succession Services Specialist Designation)
- Personal Pension Planning For Corporate Owner-Managers
- Investment Tax Strategies
- Tax Efficient Retirement Income Planning