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 | RISK MANAGEMENT IN BANKING | ||
Code | BLIM553 | ||
Coordinator |
Dr MJ Buckle Management School M.J.Buckle@liverpool.ac.uk |
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Year | CATS Level | Semester | CATS Value |
Session 2021-22 | Level 7 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 |
49 |
49 | |||||
Timetable (if known) | |||||||
Private Study | 101 | ||||||
TOTAL HOURS | 150 |
Assessment |
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EXAM | Duration | Timing (Semester) |
% of final mark |
Resit/resubmission opportunity |
Penalty for late submission |
Notes |
Examination There is a resit opportunity. Standard UoL penalty applies for late submission. This is an anonymous assessment. Assessment Schedule (When) :Semester 2 | 2.5 hours | 100 | ||||
CONTINUOUS | Duration | Timing (Semester) |
% of final mark |
Resit/resubmission opportunity |
Penalty for late submission |
Notes |
Aims |
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To examine a bank's main financial statements and their relationship to the risks inherent in banking; To understand how a bank's performance can be evaluated; To understand the significance of bank Asset and Liability Management and risk management; To analyse the nature and significance of interest rate risk and liquidity risk; To examine the off-balance-sheet activities carried out by banks; To appreciate the impact of the 2008 crisis on banking and, especially, on capital adequacy management and regulation; To understand the nature and key importance of bank corporate governance; To examine the nature and role of product and geographic diversification within a bank's risk management; To examine and understand how banks use derivative contracts to hedge their asset-liability risk exposures; To analyse how loan sales and securitisation techniques are used by bank managers to control credit risk. |
Learning Outcomes |
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(LO1) Understand and evaluate the role of risk management; |
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(LO2) Undertake a risk management role in a banking institution; |
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(LO3) Apply and critically appraise the theories underpinning risk management; |
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(LO4) Understand and critically evaluate the regulations relating to risk management within the banking and financial services sector; |
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(LO5) Understand their responsibilities under the regulations and how to meet them. |
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(S1) Adaptability |
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(S2) Problem solving skills |
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(S3) Numeracy |
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(S4) Commercial awareness |
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(S5) Organisational skills |
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(S6) Written communication skills |
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(S7) International awareness |
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(S8) Lifelong learning skills |
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(S9) Ethical awareness |
Teaching and Learning Strategies |
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Teaching Method 1 - Lecture |
Syllabus |
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An overview of the different risks inherent in banking; Assessment of credit risk and the various risk management techniques for managing credit risk; An assessment of liquidity risk and the main techniques for managing the risk; An assessment of market risk and interest rate risk and the use of techniques such as duration analysis and Value at Risk to manage these risks; The use of derivatives in risk management in banking; The role of securitisation in risk management in banking; The impact of the 2008 crisis on bank risk management. |
Recommended Texts |
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Reading lists are managed at readinglists.liverpool.ac.uk. Click here to access the reading lists for this module. |