FINANCIAL RISK MANAGEMENT - 2023/4
Module code: MAN3097
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.
Surrey Business School
HAN Liang (SII DUFE)
Number of Credits: 15
ECTS Credits: 7.5
Framework: FHEQ Level 6
JACs code: N341
Module cap (Maximum number of students): N/A
Overall student workload
Independent Learning Hours: 117
Lecture Hours: 22
Seminar Hours: 11
Prerequisites / Co-requisites
Indicative content includes:
- Introduction to Risk Management
- Trading in Financial Markets
- Interest Rate Risk
- Credit Risk
- Liquidity Risk
- Market Risk
- Hedging Strategies with Derivatives
- Risk & Regulation: Basel III
- The 2007-2008 Financial Crisis
- Option pricing models and the use of options in finance
|Assessment type||Unit of assessment||Weighting|
|School-timetabled exam/test||CLASS TEST SET TIME AND DATE (60 mins)||30|
|Examination||EXAM SET TIME AND DATE (2 hours)||70|
There are two summative assessments for this module: a class test and an end of semester examination.
The class test will comprise multiple choice questions and/or questions requiring short written answers.
The exam paper will include scenario questions. Questions may contain several parts (part (a), part (b) etc).
Assessments will include both quantitative and qualitative questions.
Quantitative questions are designed to assess numerical, application of knowledge and analytical skills.
Qualitative questions will assess application of knowledge, synthesis, creative thinking and problem-solving skills.
Formative assessment and feedback
Formative assessments such as a sample class test and exam paper will be available to support students in preparation for summative assessments and to provide ongoing feedback. Such feedback will help students identify their strengths and weaknesses and help develop revision plans for the summative assessments.
Students are also expected to engage with other feedback provided during seminars and feedback and advice hours throughout the semester.
- Develop awareness of the risks faced by financial and non-financial businesses in terms of the financial transactions they undertake.
- Explore the key methods businesses use to evaluate and manage financial risk.
- Explore the reasons for undertaking financial risk management and the strategies that can be employed to reduce risk where necessary.
|001||Identify and critically appraise potential financial risks in terms of market risk, credit risk, liquidity risk and interest rate risk.||KC|
|002||Analyse and select the appropriate risk management or hedging instrument to mitigate this risk if necessary.||KPT|
|003||Recognise the market conventions which apply to risk management instruments.||K|
|004||Critically analyse the cost and risk of using financial instruments in order to make sound analytical recommendations or judgements.||CPT|
|005||Evaluate key regulatory issues such as Basel III with regard to 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
Methods of Teaching / Learning
The learning and teaching strategy is based on a hybrid teaching model, incorporating elements of both live and on-demand learning.
On-demand learning is designed for students to explore the topics in their own time and includes a range of guided learning activities. Guided learning activities may include pre-recorded videos, practice questions & solutions, quizzes, discussion forum and links to further reading.
Live learning allows students to explore and engage in discussions on the topics, including current developments in the financial markets, and also to practise more complex questions and receive answers and feedback to queries from their tutor.
This learning and teaching strategy provides students with the opportunity to acquire knowledge and to understand the relevant theory in the context of current developments in the financial markets and develop effective solutions for decision making in the context of case study scenarios.
Indicated Lecture Hours (which may also include seminars, tutorials, workshops and other contact time) are approximate and may include in-class tests where one or more of these are an assessment on the module. In-class tests are scheduled/organised separately to taught content and will be published on to student personal timetables, where they apply to taken modules, as soon as they are finalised by central administration. This will usually be after the initial publication of the teaching timetable for the relevant semester.
Upon accessing the reading list, please search for the module using the module code: MAN3097
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 2023/4 academic year.