Session 3: 23 July - 10 August 2018
The course teaches the main principles and methods in financial risk management and their applications in the global economy. After introducing the main institutions and instruments in financial markets, the course discusses the principles of finance and risk management and then illustrates how the main risk management tools can be applied to the management of financial portfolios. Students will analyse the use of financial derivatives for hedging and speculation in financial markets. The course also addresses the potential pitfalls of risk management and discusses how an inappropriate use of risk management tools might have exacerbated the financial crisis in 2008.
The course will be of interest to those looking to better understand financial markets, instruments and risk management. This is a general level course, however some knowledge of economics or finance may be useful. Students with degrees in physics, mathematics or computer science pursuing a financial career, or central bank employees, will gain an understanding of the key elements of finance and risk management. Individuals skilled in analysing derivatives and risks are in great demand in London, New York and other financial centres throughout the world. This course provides valuable learning in the principles of finance, banking and risk management areas, contributing to your future studies or career potentials.
The course will be taught by Dr Simon Hubbert and Dr Jeo Lee both experts in their fields of financial mathematics, economics, and banking. Dr Hubbert is a senior lecturer in mathematical finance and risk management at the University of London. He has been teaching derivatives for CeFiMS and market risk techniques. Dr Lee is a financial economist specialised on risk modelling and the author of textbook Financial Risk Management & Derivatives (2012 2d Edition). Some of Dr Lee's selected research papers are available for public access. Prior to academia, Dr Lee worked for European banks and was part of the UK governmental department as a senior economist. She is currently a director of FinTech-Africa; a supervisor of MSc Finance dissertation and an exam-examiner for CeFiMS.
Professor Scaramozzino is the course director. He teaches in the School of Finance and Management at SOAS and his research focusses on corporate finance, uncertainty, risk, financial economics and comparative economic systems.
A tuition fee of £1600 will be charged per 3-week programme. This figure does not include accommodation fees.
A one-off application fee of £40 will be charged to cover administration costs. Please visit the SOAS online store to make your application fee payment.
An early bird tuition fee discount of 10% is available until 30 March 2018.
Accommodation is available to Summer School students at the SOAS halls of residence, Dinwiddy House. For more details of how to book a room please visit the Dinwiddy House accommodation page.
Students are usually able to obtain credits from their home institution and typically our courses receive 3 credits in the US system and 7.5 ECTS in the European system. If you intend to claim credits from your home institution, please check the requirements with them before you enrol. We will be happy to assist you in any way we can, however please be aware that the decision to award credits rests with your home institution.Assessment will be optional and will vary for each course. Participants will be provided with a certificate of attendance and transcripts will be available on request.
You will also be able to enjoy our social programme, starting with a welcome party and an optional river cruise on the Thames for a small additional charge. Details about how to book will be communicated to you once you are registered. You will also receive discount codes for day trips and overnight tours with our partner International Friends.
For more information, please contact us
Contact hours: 46 hours (lectures, tutorials, activities). The course will be delivered Monday - Friday over the 3 weeks.
Core hours: Monday - Thursday 10am-3pm, and 2 hours on one specified Friday over the 3 weeks.
Optional hours: In addition to regular lectures and tutorials, each course is composed of a range of 'activities' relating to their academic content (e.g. museum visit, company visit etc). On Fridays, all courses open up one of their activities to all summer school students and these are optional. For example, if you have been studying a Development course, you may choose to join an activity belonging to a Politics, Economics and Environment course. All activities will be staggered throughout the day so that you have a chance to take as many as possible. Please note however that the Friday activity relating to the course you are registered on is compulsory.
Week 1: Finance and Risk Management: An Introduction
- Financial markets, institutions and instruments
- Principles of the analysis of financial portfolios
- Principles of Investment in equities and bonds
Week 2: Risk Management using Futures and Options
- Financial derivatives
- Forwards and futures
- Financial options: payoff profiles
- Hedging strategies using futures and options
Week 3: Risk Management in the Global Economy
- Principles of the management in banking and finance
- Market Risk, Credit Risk and Operational Risk in banking and finance
- Corporate risk management in multinational corporations
- The management of currency exposure: foreign currency futures and options
Assessment: is optional and will be in the form of a 2000-2500 word essay to be handed in 2 weeks after the end of the course (70% of overall mark) and an individual presentation and numerical assignments (30% of overall mark)
Teaching & Learning
On successful completion of the course, a student should be able to demonstrate the ability to:
- Understanding financial investment, including stocks and bonds, derivatives, futures and options, hedging and speculation strategies
- Measuring and monitoring risk, including managing portfolios and calculating risk and returns
- Understanding and applications of risk management
The texts for the course are “Fundamentals of Futures and Options Markets”, Eighth Edition by John Hull; “the Essentials of Risk Management, 2nd edition, Crouhy et al, and various Corporate Finance texts.
How to Apply
In order to join our Summer School, you will need to meet the following entry requirements:
- A university student or a graduate at the time of attending the summer school, and 18+ years of age.
Professional experience can be acknowledged as equivalent to a university qualification.
- A minimum English language requirement if English is not your first language:
- IELTS, 6.5 overall or higher, with at least 6 in all sub scores.
- TOEFL Paper based test we require a minimum of 583 with minimum 53 in all skills and for TOEFL Internet Based Test we require a minimum of 93 with minimum 20 in all skills.
- Pearson Test of English a score of 59-64
- Cambridge English: Advanced (CAE) Grade B
- If you have studied in an English speaking institution, or have courses taught at your university in English (excluding English language courses) you may meet our requirements without having to supply a certificate. Evidence of this will either need to be included on a transcript or letter from your university.
- Applicants with an alternative qualification should contact us for advice.
- Applicants whose English language level do not meet out requirements may be interested in our subject based courses with English language support.
Enrolment of Summer School applicants who don’t meet the entry requirements is at the discretion of SOAS – please get in touch to speak to us in detail about your application
Once you have paid the £40 application fee and submitted the online application form, you will be informed as to whether you have a place on the summer school within 5 working days. Please do not pay your tuition fee prior to having received your offer letter.
25 May 2018