FINANCIAL RISK MANAGEMENT - 2017/8

Module code: MAN3097

Module provider

Surrey Business School

Module Leader

SOPP RE Ms (SBS)

Number of Credits

15

ECT Credits

7.5

Framework

FHEQ Level 6

JACs code

N341

Module cap (Maximum number of students)

N/A

Module Availability

Semester 2

Overall student workload

Independent Study Hours: 117

Lecture Hours: 22

Tutorial Hours: 11

Assessment pattern

Assessment type Unit of assessment Weighting
School-timetabled exam/test 50-MINUTE MID-TERM TEST (CLOSED BOOK) 30
Examination 2 HOUR FINAL EXAM (CLOSED BOOK) 70

Alternative Assessment

Not applicable

Prerequisites / Co-requisites

None.

Module overview

Financial risk management focuses on the types of risk that arise for a business including; market risk, credit risk and interest risk. This module considers financial risk management strategies; how risk is evaluated; the methods that are available to hedge against risk and the strategies that are employed to mitigate risk.  This is complemented by consideration of key risk management issues for financial institutions including regulatory issues such as Basel III. Risk Management is a key element in an Accounting and Finance programme.

Module aims

The aim of the module is to increase awareness of the risks that businesses face in terms of the financial transactions they undertake and how businesses evaluate and try to deal with risk. The module provides students with an insight into the reasons financial risk management is undertaken and the strategies that can be employed to reduce risk.

Learning outcomes

Attributes Developed
Identify and appraise potential financial risks in terms of market risk, credit risk, liquidity risk and interest rate risk. KC
Analyse and select the appropriate risk management or hedging instrument to mitigate this risk. KPT
Understand the market conventions which apply to those instruments. K
Critically analyse the cost and risk of using financial instruments. CT
Understand key regulatory issues such as Basel III and evaluate their role in risk management and their impact on management decisions KC

Attributes Developed

C - Cognitive/analytical

K - Subject knowledge

T - Transferable skills

P - Professional/Practical skills

Module content

Indicative content includes:


Introduction to Risk Management
Trading in Financial Markets
Interest Rate Risk
Credit Risk
Liquidity Risk
Market Risk
Hedging Strategies with Derivatives; Futures and Options
Risk & Regulation: Basel III
The 2007-2008 Financial Crisis

Methods of Teaching / Learning

The learning and teaching strategy is designed to allow a student to come to grips with what is essentially a subject of mixed theory and practice and in so doing develop a mixture of academic and industry knowledge, numerical problem solving skills and enhance analytical and decision taking powers. This is in line with the programme’s learning and teaching strategy which develops academic and practitioner skills.

The learning and teaching methods include:


Eleven weekly two-hour lecture incorporating class-room participation for better understanding.
Eleven weekly one hour tutorials for solving problems to understand key concepts covered in lectures. Tutorials include worked examples which are an integral part of the module. Due to the quantitative nature of the module it is important that participants regularly solve set problems and consult available solution sets. Tutors will provide the necessary support during these sessions for deeper understanding of key issues.
SurreyLearn discussion forums to address any issues related to the content, learning and teaching environment, and delivery of the module and/or specific topics.
Utilizing SurreyLearn as the main pool of resources including lecture handouts, seminar problems, mock exercises, and discussions. Using SurreyLearn as the main means of communication establishes resource efficiency, communicational effectiveness and visibility for all students.
Weekly office hours provided by lecturers.
Support of lecture material by directed reading in selected textbooks and journal articles.

Assessment Strategy

The assessment strategy is designed to provide students with the opportunity to demonstrate through a combination of written and numerical assessments their ability to:


Appraise and quantify potential financial risks including market risk, credit risk, liquidity risk and interest rate risk.
Analyse and select the appropriate risk management or hedging instrument to mitigate this risk.
Critically analyse the cost and risk of using financial instruments to perform risk management or risk adjustment
Outline and critically appraise key issues such as Basel III or the Financial Crisis 2007-8


Thus, the summative assessment for this module consists of:


A closed book class test (50 minutes) based on the first 4 weeks lectures to be held in week
A 2 hour closed book exam covering all topics will be held at the end of the module.


Formative assessment and feedback

Students will receive oral feedback during seminars.

Feedback and guidance will be given via SurreyLearn throughout the module.

The purpose of a class test early in the module is to ensure that students are engaged early in the module and their understanding of core concepts and principles is evaluated.

Reading list

Reading list for FINANCIAL RISK MANAGEMENT : http://aspire.surrey.ac.uk/modules/man3097

Programmes this module appears in

Programme Semester Classification Qualifying conditions
Accounting and Finance BSc (Hons) 2 Compulsory A weighted aggregate mark of 40% is required to pass the module

Please note that the information detailed within this record is accurate at the time of publishing and may be subject to change. This record contains information for the most up to date version of the programme / module for the 2017/8 academic year.