RISK MANAGEMENT - 2017/8
Module code: MANM279
Surrey Business School
SOPP RE Ms (SBS)
Number of Credits
FHEQ Level 7
Module cap (Maximum number of students)
Overall student workload
Independent Study Hours: 117
Lecture Hours: 22
Tutorial Hours: 11
|Assessment type||Unit of assessment||Weighting|
|School-timetabled exam/test||50 MINUTES CLASS TEST (QUESTION AND NUMERICAL)PROBLEM SOLVING, CLOSED BOOK)||30|
|Examination||TWO HOURS FINAL EXAMINATION (WRITTEN AND NUMERICAL PROBLEM SOLVING, CLOSED BOOK)||70|
Prerequisites / Co-requisites
Risk management focuses on the types of risk that arise for a business including; market risk, credit risk, liquidity risk and interest rate 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 bank capital adequacy. The lessons to be learned from the Financial Crisis of 2007-08 are also investigated. Understanding risk and how to identify and deal with it provides a key input for students of finance, accounting or banking.
The aim of the module is to increase awareness of the risks that businesses face in terms of the financial transactions they undertake and to enable students to critically assess and implement the key methods businesses use to 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 where necessary.
|1||Identify and critically appraise potential financial risks in terms of market risk, credit risk, liquidity risk and interest rate risk.||KC|
|2||Analyse and select the appropriate risk management or hedging instrument to mitigate this risk if necessary||KPT|
|3||Understand the market conventions which apply to risk management instruments.||K|
|4||Critically analyse the cost and risk of using financial instruments.||CT|
|5||Possess the skills to deal with complex issues systematically and make sound analytical recommendations or judgements.||CPT|
|6||Understand key regulatory issues such as Basel III and evaluate their role in risk management and their impact on management decisions||KC|
C - Cognitive/analytical
K - Subject knowledge
T - Transferable skills
P - Professional/Practical skills
Indicative content includes:
Introduction to Risk Management
Trading in Financial Markets
Interest Rate Risk
Hedging Strategies Using Futures
Options Trading Strategies
Risks to the Financial System
The Credit Crisis of 2007-2008
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 interactive 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 and the provision of self-study resources on SurreyLearn.
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 risk issues at the macro-level such as Basel III or the Financial Crisis 2007-8
Summative assessment for this module consists of:
Closed book class test 50 minutes based on the first 4 weeks lectures to be held in week 6
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 for RISK MANAGEMENT : http://aspire.surrey.ac.uk/modules/manm279
Programmes this module appears in
|International Financial Management MSc||2||Optional||A weighted aggregate mark of 50% is required to pass the module|
|Accounting and Finance MSc||2||Optional||A weighted aggregate mark of 50% is required to pass the module|
|Corporate Finance MSc||2||Optional||A weighted aggregate mark of 50% is required to pass the module|
|Investment Management MSc||2||Compulsory||A weighted aggregate mark of 50% is required to pass the module|
|Economics and Finance MSc||2||Optional||A weighted aggregate mark of 50% 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.