RISK MANAGEMENT - 2023/4
Module code: MANM279
Risk management focuses on the following types of financial risk that arise for a business: market risk, credit risk and liquidity risk. A brief introduction to non-financial risks is also given, but is not the main focus. 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.
Surrey Business School
DIAS Fabio (SBS)
Number of Credits: 15
ECTS Credits: 7.5
Framework: FHEQ Level 7
JACs code: N341
Module cap (Maximum number of students): N/A
Overall student workload
Independent Learning Hours: 90
Lecture Hours: 20
Seminar Hours: 10
Guided Learning: 10
Captured Content: 20
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 Using Derivatives
- Options Trading Strategies
- Risks to the Financial System including the Financial Crisis of 2007-2008
- Regulation to help reduce Risk in the Financial System
|Assessment type||Unit of assessment||Weighting|
|Online Scheduled Summative Class Test||ONLINE TEST 60 MIN||30|
|Examination Online||ONLINE EXAM 120 MIN||70|
The assessment strategy is designed to provide students with the opportunity to demonstrate both the theoretical concepts and their practical application.
Summative assessment for this module consists of:
- A mid-term test (30%)
- A final exam (70%)
Formative assessment and feedback
Formative feedback will be given in a continuous manner during the course of the module. Student feedback and consultation hours are used to provide individual formative feedback to students. Students also have the opportunity to sit a mock mid-term test and mock exam to gain a greater insight into progress and areas requiring further study.
Formative and summative feedback on the mid-term test will be given in the teaching week following the test. This will enable the students to assess their learning at that stage and to further prepare for the final exam.
- In this module students will learn about:
classification and mitigation of key financial risks,
lessons learned from the Financial Crisis of 2007-08 and regulatory developments since then,
financial products used to manage financial risk.
|001||Identify sources of market risk, credit risk and liquidity risk for financial and non-financial institutions.||KCP|
|002||Propose ideas to manage and mitigate financial risks.||KCP|
|003||Evaluate financial risks in the context of economic scenarios||KC|
|004||Critically analyse the cost and risk of using financial instruments.||CT|
|005||Evaluate key regulatory issues such as Basel III and 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 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:
- Seminars incorporating interactive class-room participation for better understanding. Seminars 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.
- Lectures prepare the students to understand key concepts covered in the seminar.
- 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 guided learning 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 student feedback and consultation hours provided by the tutors.
- Support of lecture material by directed reading in selected textbooks and journal articles and the provision of self-study resources on SurreyLearn.
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: MANM279
Employability: The module provides a variety of tasks and authentic assessments that mimic professional life. Key to this, students develop the ability to critically evaluate the problem at hand, interact with their group members, and present their findings. As a result, students develop and enhance the interpersonal and professional skills.
Global and Cultural Capabilities: The module is taught in an interactive and collaborative way, in a cohort that commonly represents a wealth of nationalities and backgrounds. Students are encouraged to engage with, and learn from, diverse perspectives through interaction and teamwork. Students will develop their ability to work in groups effectively with other students from diverse backgrounds to broaden their world view, own perspectives and interpretations and reinterpreting issues against a broader spectrum of ideas and representations.
Digital Capabilities: Throughout the module students learn to navigate and utilise the Virtual Learning Environment @ Surrey (SurreyLearn) and other digital resources and online databases to aid their learning and undertake research. Students are encouraged to use current media such as, Teams, , and utilising cloud/file sharing for communication and team working. Students will develop proficiency in these aspects of digital engagement.
Resourcefulness & Resilience (R&R): Students will develop attributes such as confidence, adaptability, self-regulation, self-efficacy, problem solving and decision-making abilities, through interacting in their groups, engaging with their group members, and presenting their findings in front of audience. The effectiveness of the R&R will be inherent in assessment design
Programmes this module appears in
|Accounting and Finance MSc||2||Optional||A weighted aggregate mark of 50% is required to pass the module|
|Economics MA||2||Optional||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|
|International Corporate Finance MSc||2||Optional||A weighted aggregate mark of 50% is required to pass the module|
|Investment Management MSc||2||Optional||A weighted aggregate mark of 50% is required to pass the module|
|International Financial Management 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 2023/4 academic year.