This course enables students to understand the fundamental concepts in derivatives and risk management and their applications. Derivatives have been used extensively in hedging, arbitrage, speculation, and the design of financial products. Executives with knowledge in derivatives can better assess the risk of a business entity. Precautions of using derivatives will also be emphasised. Besides application of derivatives in risk management, other techniques in risk management are introduced. In the global environment of business, risk management is an indispensable tool for business managers. Students will be able to apply the concepts in this course to real-world situations after completion of this course.