Department: Business School (Business)
Financial Risk Management
To construct on the core module ‘Managing Finance’ by offering college students with the superior data wanted to know the methods proposed by specialist practitioners within the discipline (e.g. company treasurers), and the abilities to contribute to discussions of danger administration as much as board stage.
Introduction. Return-Risk tradeoffs. Efficient frontier. CAPM mannequin.
Trading in markets. Short promoting. Plain Vanilla derivatives: Forwards, futures, swap and choices.
How merchants handle dangers utilizing parameters akin to Delta, Gamma and so forth.
Interest charge danger. Duration and convexity of bonds.
Value at Risk (VaR). Expected shortfalls (ES). Difference between ES and VaR.
Credit danger. Credit default swaps (CDS).
General strategies used within the valuation of economic derivatives;
Hedging strategies utilizing structured monetary derivatives;
Computational strategies for monetary danger evaluation and administration.
By the tip of the module college students ought to be capable to:
Identify and consider the principal monetary dangers confronted by a big firm;
Apply strategies of asset portfolio administration, with explicit emphasis on bond and invoice portfolios;
Identify and consider the strategies by which these dangers will be managed, and the extent to which such strategies ought to be used;
Devise and suggest credible monetary danger administration methods based mostly on a spread of generic, and structured, monetary derivatives;
Critically assess monetary danger administration methods proposed by an organization’s danger administration practitioners.
Planning, organising and time administration;
Problem fixing and evaluation;
Modes of Teaching, Learning and Assessment and the way these contribute to the training outcomes of the module
The module is delivered by way of on-line studying, divided up into examine weeks with specifically produced sources inside every week. Resources range in accordance with the training outcomes however usually embody: video content material, directed studying, reflection by actions, alternatives for self-assessment and peer-to-peer studying inside a tutor-facilitated dialogue board. Tutors present suggestions on formative work and facilitate dialogue board communication in addition to being out there for particular person session as needed (normally by e-mail and Skype).
The summative evaluation of the module is designed to check the acquisition and articulation of data and significant understanding, and expertise of utility and interpretation inside the enterprise context.