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 2021-22 Level 6 FHEQ Second Semester 15

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

ACFI304 BUSINESS FINANCE 

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

12

12

60
Timetable (if known)           120 mins X 1 totaling 24
60 mins X 1 totaling 12
60 mins X 1 totaling 12
60 mins X 1 totaling 12
 
 
Private Study 102
TOTAL HOURS 162

Assessment

EXAM Duration Timing
(Semester)
% of
final
mark
Resit/resubmission
opportunity
Penalty for late
submission
Notes
Assessment: Written Unseen Examination Assessment Type: Written Exam Duration: 24 hours Size: Maximum 1000 Words Weighting: 100% Reassessment Opportunity: Yes Penalty for Late Submission: St  24 hours    100       
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, FX risk, Market risk, Credit risk, Liquidity risk and Capital adequacy. 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 foreign exchange market operates, the risk it poses and related hedging methods

(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

(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 Delivery: Fully online delivery

Teaching Method: Online Asynchronous Learning Materials
Description: Recordings introducing the main points of the syllabus
Unscheduled Directed Student Hours: 24
Attendance Recorded: No

Teaching Method: Online Synchronous Session
Scheduled Directed Student Hours: 12
Attendance Recorded: Yes

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

Teaching Method: Group Study
Description: Weekly 1 hour session to foster student community and engagement by working with others on their ‘active learning’ activities
Scheduled Student Hours: 12
Attendance Recorded: No

Self-Directed Learning Hours: 102
Description: Completion of assigned reading, review of lecture materials, preparation for assessments

Skills/Other Attributes Mapping

Skills / attributes: Adapta bility
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: Teamwork
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 st udy
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 directed 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
Foreign Exchange Risk
Credit Risk I
Credit Risk II
Liquidity Risk
Capital Adequacy


Recommended Texts

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