This module is about defining, measuring and managing the various risks that are inherent in the business of finance, with special emphasis on the business of commercial banking.
To help students understand and measure various types of risks in the financial market and how they affect the value of portfolios; to provide an introduction to the features and applications of important financial derivatives that can be used in risk management; and to discuss and analyse cases of how risk management is conducted in the real world.
Learning Outcomes
On successful completion of the module, students will be able to:
-Identify exposure to different types of risk
-Understand and be able to apply Value-at-Risk (VaR)
-Use derivatives to hedge equity, bond, interest-rate and currency risk
-Quantify the impact of market movements on portfolio value
Skills for Your Professional Life (Transferable Skills)
Upon successful completion of the module, students should be able to:
* Be able to price a bank loan given a customer's credit information and market parameters
* Be able to comment on the role and impact of the Basel accords in the development of banking regulation around the globe
* Be able to interpret what a credit rating means
* Improve research skills through the use of the Google Scholar search platform
* Develop critical thinking through the use of recent article journals
* Evaluate learning outcomes on case studies, i.e. Long Term Capital Management, Pine Street Capital, among others