This course gives an introduction to the analysis and management of risk in the context of financial markets. The objective of the course is to provide a conceptual framework for thinking about financial risk, covering both theoretical background and practical implementation. The course starts with an introduction to the classification of risk and the basic principles of diversification and hedging. Then, we will discuss the methods to manage market risk for fixed income and equity portfolios. The students will learn about Value at Risk (VaR) and its applications to risk management practices. Furthermore, the course introduces the concept of endogenous risks and demonstrates how financial risks originate within the financial system. The course also highlights behavioural aspects of risk and discusses important limitations of current risk management practices. Next, we turn to credit risk, with a focus on ratings based and structural models. In addition, credit risk on portfolios and credit derivatives will be covered. Finally, we will discuss the recent credit crisis and the ensuing regulatory responses. Throughout, a significant amount of time will be spent on practical applications of the theories that are introduced. This will be done through a combination of case studies and problem sets.