ULMS Electronic Module Catalogue

The information contained in this module specification was correct at the time of publication but may be subject to change, either during the session because of unforeseen circumstances, or following review of the module at the end of the session. Queries about the module should be directed to the member of staff with responsibility for the module.
Title FINANCIAL RISK MANAGEMENT
Code ACFI342
Coordinator Dr DE Avino
Finance and Accounting
D.Avino@liverpool.ac.uk
Year CATS Level Semester CATS Value
Session 2019-20 Level 6 FHEQ Second Semester 15

Pre-requisites before taking this module (other modules and/or general educational/academic requirements):

 

Modules for which this module is a pre-requisite:

 

Programme(s) (including Year of Study) to which this module is available on a required basis:

 

Programme(s) (including Year of Study) to which this module is available on an optional basis:

 

Teaching Schedule

  Lectures Seminars Tutorials Lab Practicals Fieldwork Placement Other TOTAL
Study Hours 24

12

        36
Timetable (if known) 120 mins X 1 totaling 24
 
           
Private Study 114
TOTAL HOURS 150

Assessment

EXAM Duration Timing
(Semester)
% of
final
mark
Resit/resubmission
opportunity
Penalty for late
submission
Notes
Assessment 1: Mid-term test Assessment Type: Written Exam Duration: 1 hour Weighting: 20% Reassessment Opportunity: Yes Penalty for Late Submission: Standard UoL penalty applies Anonymo  1 hour    20       
Assessment 2: Written Unseen Examination Assessment Type: Written Exam Duration: 2 hours Weighting: 80% Reassessment Opportunity: Yes Penalty for Late Submission: Standard UoL penalty ap  2 hours    80       
CONTINUOUS Duration Timing
(Semester)
% of
final
mark
Resit/resubmission
opportunity
Penalty for late
submission
Notes
             

Aims

The module builds on the foundations of the existing finance modules and aims to give students a solid grounding in terms of understanding the recent global financial crisis and a wide range of risk management tools available to financial managers. Particular emphasis is placed on the issue of risk measurement. The following types of risk will be analysed extensively: Interest rate risk Market risk Credit risk Liquidity risk Capital adequacy Sovereign risk The class is run as a discussion based forum.


Learning Outcomes

(LO1) Students will be able to understand how risk management contributes to value creation

(LO2) Students will be able to understand how the global market for credit operates

(LO3) Students will be able to explain the causes of the recent global credit crisis

(LO4) Students will be able to overview the risks facing a modern corporation

(LO5) Students will be able to analyse the effects of interest rate volatility on risk exposure

(LO6) Students will be able to examine market risk, which results when companies actively trade bonds, equities and other securities

(LO7) Students will be able to examine how credit risk adversely impacts a financial institution’s profits

(LO8) Students will be able to analyse the problems created by liquidity risk

(LO9) Students will be able to become familiar with the concept of capital adequacy and also with the Basel Accords

(LO10) Students will be able to examine several aspects of sovereign lending and the underlying risks

(S1) Adaptability

(S2) Numeracy

(S3) Problem solving skills

(S4) Teamwork

(S5) Organisational skills

(S6) Communication skills

(S7) IT skills

(S8) International awareness

(S9) Lifelong learning skills

(S10) Ethical awareness


Teaching and Learning Strategies

Teaching Method: Lecture
Description: Lecture introducing the main points of the syllabus
Scheduled Directed Student Hours: 24
Attendance Recorded: No

Teaching Method: Seminar
Description: Whole class seminars
Scheduled Directed Student Hours: 12
Attendance Recorded: Yes

Self-Directed Learning Hours: 114
Description: Completion of assigned reading, review of lecture materials, preparation for assessments

Skills/Other Attributes Mapping

Skills / attributes: Adaptability
How this is developed: Lectures, workshops and directed study
Mode of assessment (if applicable)

Skills / attributes: Numeracy
How this is developed: Lectures, workshops and directed study
Mode of assessment (if applicable)
Examination

Skills / attributes: Problem solving skills
How this is developed: Lectures, workshops and directed study
Mode of assessment (if applicable)
Examination

Skills / attributes: Team work
How this is developed: Lectures, workshops and directed study
Mode of assessment (if applicable)

Skills / attributes: Organisational skills
How this is developed: Lectures, workshops and directed study
Mode of assessment (if applicable)

Skills / attributes: Communication skills
How this is developed: Lectures, workshops and directed study
Mode of assessment (if applicable)

Skills / attributes: IT skills
How this is developed: Lectures, workshops and directed study
Mode of assessment (if applicable)

Skills / attributes: International awareness
How this is developed: Lectures, workshops and directed study
Mode of assessment (if applicable): Examination

Skills / attributes: Lifelong learning skills
How this is developed: Lectures, workshops and directed study
Mode of assessment (if applicable)

Skills / attributes: Ethical awareness
How this is developed: Lectures, workshops and direct ed study
Mode of assessment (if applicable): Examination


Syllabus

 

Introduction to Risk Management: Why Manage Risk?
Measuring Risk
Interest Rate Risk I
Interest Rate Risk II
Market Risk I
Market Risk II
Credit Risk I
Credit Risk II
Liquidity Risk
Sovereign Risk
Capital Adequacy


Recommended Texts

Reading lists are managed at readinglists.liverpool.ac.uk. Click here to access the reading lists for this module.