This course provides participants with the essentials of finance and risk management including the theories, concepts, tools and techniques for understanding, discussing and evaluating key themes in finance and risk management. Many of the principles in risk management were developed in relation to financial firms such as banks and investment fund managers, but they are also applicable to non-financial firms in commerce, manufacturing, government or other sectors. The world changed after the global financial crisis of 2007-2009, in particular, the changes and challenges in financial sector regulatory constraints and the higher capital costs under Basel III. All firms face risks although the types of risks they face and their extent differ, consequently, risk management requires strategies for dealing with financial risks and appropriate techniques for implementing the strategies. Based on academic research on the principles together with practical examples and applications, students will learn how to calculate financial risks, and to change the combination of risk and expected return by taking the form of derivatives contracts (such as options and futures) that powerfully facilitate strategies to reduce risk (‘hedging’) or increase it (‘speculation’). Students will learn how banks manage downside risks through improving their risk measurement and management methodologies under the interconnected nature of the global financial system.
Topics that are covered in the course include understanding financial markets, financial instruments, financial institutions and the principles of risk management; examining concepts and methods used in the analysis of portfolios of financial securities, including stocks and bonds; explaining the use of financial derivatives for hedge and speculation in financial markets; and evaluating the application of risk.
On successful completion of the course, a student should be able to demonstrate the ability to:
- Identify what the elements and functions of financial markets, institutions, the financial instruments of capital markets and their increasingly significant interactions in the global economy
- Understand what is portfolio risk and return and how risk and return are related and then learn how to measure and analyse portfolio risk-return analysis in equity and bond investment
- Understand the theoretical concepts of financial derivatives in particular, futures and options contracts, distinguish between hedging and speculation strategies using futures and options, and skilfully use derivatives to managing financial risks, for instance, changes of interest rates, currencies, an stock prices.
- Know the types of financial risks in banking and financial sectors, and the principles of managing financial risks, and learn how to measure and manage key regulatory risks in banking sector (market risk, credit risk, operational risk) under the Basel III.
- Engage in rational thinking and discussing finance and risk management using a multidisciplinary framework by linking theories and concepts in finance, investment, business cycles, global financial crises and macroeconomic policies.
- Develop and exhibit the intellectual disposition of confidence in reason to critically discuss the issues in finance, investment and risk management in the global economy.
Assessment is optional and will be in the form of presentations (30%) and a 2,000-2,500 word essay (70%) to be handed in 2 weeks after the end of the course.
15 SOAS Credits
This course is worth 15 credits in the UK system. 15 credits is equivalent to 4 credits in the US system and 7.5 ECTS in the European system. If you intend to transfer credit to your home institution, please check the requirements with them before you apply. We will be happy to assist you in any way we can, however please be aware that the decision to transfer credit rests with your home institution.
Current SOAS students selecting this course as an open option module will not be charged the tuition-fee. For further information and assistance, please contact email@example.com.
For more information, please contact us
Venue: Russell Square: College Buildings
Start of programme: 20 July – 7 August 2020
Mode of Attendance: Full-time
- 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.
- 3 weeks
Tuition Fees 2020
Credit assessed: £1,750
Week 1: Finance, Investment Risk and Capital Markets
Week 2: Managing Financial Risks using Futures and Options
- Financial markets, institutions and instruments
- Principles of the analysis of financial portfolios
- Principles of Investment in equities and bonds
- Principles of financial risk management
Week 3: Risk Management in the Global Economy
- Forwards and futures
- Financial options: payoff profiles
- Hedging strategies using futures and options
- Managing foreign exchange risk
- Market risk: Measurement (VaR) and applications
- Credit Risk: Measurement (CreditMetrics) and applications
- Operational Risk in banking and finance
- Future of global economic and financial market developments
In addition to classroom-based lectures and tutorials, students will attend a range of activities and field trips that support and contribute towards the core learning outcomes and objectives.
Examples of trips include:
- An organised short-trip to the Bank of England and the London Stock Exchange taking advantage of SOAS location in London
- This course encourages students to visit the British Library and to attend a short seminar at the Bank of England.
The information on the programme page reflects the intended programme structure against the given academic session. If you are a current student you can find structure information on the previous year link at the top of the page or through your Department. Please read the important notice regarding changes to programmes and modules.
Teaching & Learning
50 hours (lectures, tutorials, activities). The course will be delivered Monday - Friday over the 3 weeks.
Monday - Friday, 10am-3pm. 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). Optional hours:
Sample Reading list:
- M. Crouhy, D. Galai and R. Mark, The Essentials of Risk Management, 2nd ed, New York, McGraw Hill, 2014.
- E.J. Elton, M.J. Gruber, S.J. Brown and W.N. Goetzmann, Modern Portfolio Theory and Investment Analysis, 8th ed., New York, Wiley, 2011. 2
- J.C. Hull, Fundamentals of Futures and Options Markets, 8th ed., New Jersey, Prentice Hall, 2013.
- R.A. Brealey, S.C. Myers and F. Allen, Principles of Corporate Finance, 11th Global Edition, McGraw Hill, 2013.
A one-off, non-refundable application fee of £40 will be charged to cover administration costs. Please visit the SOAS online store to make your application fee payment.
10% early-bird discount when you apply by 31 March
10% discount if you apply for two courses over 6 weeks
15% discount for SOAS Alumni (including Academic Summer School alumni)
20% discount for our partner institutions
Other discounts are available for groups. Please contact us for more information.
For more information, please see our accommodation page.
The SOAS Academic Summer School is delighted to offer six tuition-fee waiver scholarships to passionate students with a desire to make a difference in the world.
The scholarships will cover the tuition-fee for one Academic Summer School course in 2020.
Application Deadline: 2020-03-02 00:00
For further details and information on external scholarships visit the Scholarships section
How to Apply
In order to join the Academic Summer School, students should meet the following entry requirements:
- A university student or a graduate at the time of attending. Professional experience can be acknowledged as equivalent to a university qualification.
- Participants must be 18 or over at the time of attendance.
- Fluency in English language is recommended for non-credit courses, but essential for SOAS Accredited courses. Proficiency can be demonstrated through:
- 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.
- If you are unsure whether you meet the above entry requirements, please contact us to discuss your application.
Enrolment of applicants who do not meet the entry requirements is at the discretion of SOAS – please get in touch to speak to us about your application and we will be happy to help.
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.
Applications now accepted on a rolling basis for all courses