Risk management

Module Code:

15PFMC071

Credits:

15

FHEQ Level:

7

Taught in:

Term 1

This module provides students with fundamental knowledge about how to use financial tools to manage risk. The risk tools of management covered by the module include portfolio analysis; bonds and the yield curve; financial derivatives (including forwards and futures); options (and how to use them to hedge) and Value at Risk (VaR).    

Objectives and learning outcomes of the module

This course enables students to:

• Understand fundamental theories and concepts regarding financial tools that can be used in risk management
• Understand and analyse the movement of real life financial markets reported in financial magazines and newspapers
• Understand how to use some standard risk management tools to solve risk management problems for financial firms
• Understand how some standard risk management tools can be applied to nonfinancial firms

Workload

Lectures

This module consists of a 2-hour weekly lecture over 10 weeks of term plus a revision lecture in term 3 as preparation for the final examination. Students will be supplied with a syllabus with a breakdown week by week of required and additional reading. Reading materials are usually accessed electronically from the BLE and students should come to class prepared.

Tutorials

This module also has a weekly 1-hour tutorial where the questions posed by the tutor relevant to the lecture are explored and discussed by the students. Students also prepare and deliver a short presentation.

Total Work load:

Students on this module will have 3 taught hours each week. Additionally, adequate personal study time should be allocated for reading and class preparation.

Method of assessment

Assessment for this module is in three elements:

1. One tutorial presentation at 10%
2. One essay of 2,500 words at 30%
3. One unseen 2-hour written examination at 60%

All elements except the presentation may be resubmitted

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