Financial Risk Management

Learning Outcomes

Transferable and Generic Skills

Having successfully completed this module you will be able to:

• apply knowledge learned in the class to particular problems.
• compose and communicate ideas effectively, both orally and in writing;
• develop clear logical thinking;

Knowledge and Understanding

Having successfully completed this module, you will be able to demonstrate knowledge and understanding of:

• regulatory issues concerning investment banks, securities firms and other major financial institutions;
• how to control for operational risk through regulation;
• how to apply internal risk management models to credit risk;
• how banks/firms allocate capital among their departments in respect of both volatile and calm market conditions.
• how banks/firms try to control financial risks through value-at-risk, derivatives and related models;

Subject Specific Intellectual and Research Skills

Having successfully completed this module you will be able to:

• calculate a bank’s market, interest rate, credit and operational risks based on regulatory principles and actual data.

• An introduction to risk and risk management
• Bank Regulations and risk control
• Market risk measurement and modelling: Value-at-Risk and Volatility modelling
• Interest rate risk measurement and management
• Credit risk measurement and management
• Operational risk management for banking sector

The course will consist of 6 weekly 4-hour lectures. Discussion threads will be set up for each of the syllabus topics, to which you should post any questions that you have concerning the material.

Formative

This is how we’ll give you feedback as you are learning. It is not a formal test or exam.

Peer assessment

• Assessment Type: Formative
• Feedback: Peer and self-assessment methods will be used to help students assess their understanding; exercises, which students will be recommended to attempt by themselves, will be available in lectures or on online blackboard and the answer is available one week after.
• Final Assessment: No
• Group Work: No

Summative

This is how we’ll formally assess what you have learned in this module.

Referral

This is how we’ll assess you if you don’t meet the criteria to pass this module.

Repeat

An internal repeat is where you take all of your modules again, including any you passed. An external repeat is where you only re-take the modules you failed.