Modules | Management School | University of Liverpool

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 Crises and Defaults
Code	ACFI319
Coordinator	Dr M Kim Finance and Accounting Minjoo.Kim@liverpool.ac.uk
Year	CATS Level	Semester	CATS Value
Session 2025-26	Level 6 FHEQ	First Semester	15

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

ACFI225 Econometrics for Finance 1 2024-25; ACFI233 Econometrics for Finance II 2024-25; ECON212 Econometrics 1 2024-25; ECON213 Econometrics 2 2024-25

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	5					29
Timetable (if known)
Private Study							121
TOTAL HOURS							150

Assessment
EXAM	Duration	Timing (Semester)	% of final mark	Resit/resubmission opportunity	Penalty for late submission	Notes

CONTINUOUS	Duration	Timing (Semester)	% of final mark	Resit/resubmission opportunity	Penalty for late submission	Notes
Assessment 2: Report – quantitative analysis Assessment Type: Coursework Duration: 3,000 words Weight: 70% Reassessment opportunity: Yes Penalty for late submission: Standard UoL penalty applies	0		70
Assessment 1: Report – literature review Assessment Type: Coursework Duration: 1500 words Weight: 30% Reassessment opportunity: Yes Penalty for late submission: Standard UoL penalty applies Anon	0		30

Aims

The module aims to provide students with a fundamental understanding of the core theoretical and empirical aspects involved in financial crises & defaults, financial fragility, and systemic risks of the financial system. In particular, it aims to enable students to:
1.Understand the financial crises and defaults from history.
2.Understand the main factors contributing to financial fragility and the systemic risk of the financial system.
3.Become familiar with a range of econometric techniques and models developed to assess the systemic risk of financial systems.
4.Develop the capacity to create practical projects that measure and monitor the systemic risk of financial systems using the programming language R or Python and various macroeconomic and financial data.

Learning Outcomes
(LO1) Students will be able to demonstrate their understanding of financial crises and defaults through historical events.
(LO2) Students will be able to demonstrate their understanding of the main factors contributing to financial fragility.
(LO3) Students will be able to demonstrate their understanding of the systemic risk in the financial system.
(LO4) Students will be able to demonstrate their ability to use various econometric techniques and models to evaluate systemic risk in the financial system.
(LO5) Students will be able to demonstrate their ability to develop practical projects that assess and monitor systemic risk in the financial system using the programming language R or Python and various macroeconomic and financial data.
(S1) Problem Solving Skills
(S2) Numeracy
(S3) Commercial Awareness
(S4) Communication Skills

Teaching and Learning Strategies

Teaching Method: Lecture
Scheduled Directed Student Hours: 24
Attendance Recorded: No

Teaching Method: Seminar
Scheduled Directed Student Hours: 5
Attendance Recorded: Yes

Pre-requisites: ACFI225 and ACFI233 or ECON212 and ECON213

Self-Directed Learning Hours: 121
Description: Students are expected to go through: a) the teaching material and exercises and b) the relevant reading list

Skills/Other Attributes Mapping

Skills / attributes: Problem solving skills
How this is developed: Start with the problem in hand and use mathematical models to provide an empirical answer. Lecture examples and exercises will address this.
Mode of assessment (if applicable): Assignments.

Skills / attributes: Numeracy
How this is developed: Use econometric models to provide an empirical answer to the problem in hand. Lecture examples and seminar exercises (based on the programming language R or Python) will address this.
Mode of as sessment (if applicable): Assignments.

Skills / attributes: Commercial awareness
How this is developed: Rely on the empirical answer of a given problem to explain what this means for a particular financial market or country in today's complex and rapidly changing financial environment. Detailed discussion of lecture examples will help students achieve commercial awareness.
Mode of assessment (if applicable): Assignments.

Skills / attributes: Communication skills
How this is developed: Through detailed interpretation of empirical results. Lecture examples will address this.
Mode of assessment (if applicable): Assignments.

Syllabus

Part 1. Understanding financial crises:
•We introduce lessons from history.
•We watch "Inside Job," a 2010 American documentary film directed by Charles Ferguson about the 2008 global financial crisis (GFC), and discuss why GFC occurred.

Part 2. A primer on systemic risk and contagion:
•We introduce cores on systemic risk and contagion.
•We introduce practical guides for measuring systemic risk and contagion.

Part 3. Masterclass:
•The invited speaker will deliver a special lecture on the recent development of the Early Warning System (EWS) for financial crises.

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