Bank Risk Management
| Module title | Bank Risk Management |
|---|---|
| Module code | BEF2029DA |
| Academic year | 2024/5 |
| Credits | 30 |
| Module staff |
| Duration: Term | 1 | 2 | 3 |
|---|---|---|---|
| Duration: Weeks | 12 |
| Number students taking module (anticipated) | 70 |
|---|
Module description
As demonstrated by the 2007-2009 global financial crisis, banks are key to the smooth functioning of an economic system, and bank failures can lead to a sharp increase in firm bankruptcies and unemployment. For this reason, the banking industry is highly regulated. This module is designed to provide you with a comprehensive understanding of risk management practices within the banking sector. You will explore the various types of risks banks face —such as credit risk, market risk, liquidity risk, operational risk, and reputational risk— and examine the tools and strategies used to identify, assess, monitor, and mitigate these risks. The module examines the theoretical and empirical literature on these topics, and bridges theory with practice. You will be presented with real-world case studies to illustrate effective risk management strategies and enable you to learn from successful risk management implementations.
Module aims - intentions of the module
The aim of this module is to introduce you to integrated knowledge and a critical understanding of risks inherent in banking institutions and apply a range of risk management techniques and strategies. You will be equipped with the knowledge, skills, and tools necessary to manage risks effectively and enhance sustainable and responsible decision-making processes. You will:
- identify and measure the risks inherent in banks and critically evaluate the practice of cost-effective risk management within institutions.
- critically review the sustainable principles of effective risk management and control in the context of a financial institution’s obligations to its stakeholders and the environment.
- Through case studies and practical analysis, develop critical skills in evaluating risk management processes and apply theoretical knowledge to real-world banking scenarios.
Intended Learning Outcomes (ILOs)
ILO: Module-specific skills
On successfully completing the module you will be able to...
- 1. Critically evaluate the nature and significance of risks faced by banking institutions, emphasising the role of ESG criteria in risk identification, measurement, and mitigation strategies;
- 2. Identify and explain the key types of risk faced by banks, including credit, market, liquidity, operational, and reputational risks
- 3. Analyse the role of risk management frameworks and regulatory requirements.
- 4. Evaluate the tools and techniques used for assessing, monitoring, and mitigating different banking risks.
- 5. Assess the effectiveness of internal controls and governance structures in risk oversight within banks.
- 6. Discuss the impact of digital transformation and cybersecurity threats on risk profiles in modern banking.
- 7. Use case-based reasoning to recommend risk management strategies in realistic banking scenarios.
ILO: Discipline-specific skills
On successfully completing the module you will be able to...
- 8. Develop a critical awareness of the current trends in managing the risks encountered by banking institutions.
- 9. Assess the impact of regulatory requirements on risk management practices in financial institutions;
- 10. Understanding the ethical implications of risk decisions and the importance of a strong risk culture
ILO: Personal and key skills
On successfully completing the module you will be able to...
- 11. Demonstrate the ability to recommend and implement practical solutions to real-world banking risk challenges.
- 12. Demonstrate a high-level overview of the role and responsibilities within the institution
- 13. Present risk management strategies clearly and persuasively to diverse stakeholders.
Syllabus plan
Indicative topics:
- Nature and types of risks faced by banking institutions
- Importance of risk management in banking institutions
- Risk identification and assessment
- Risk measurement, principles and techniques
- Risk mitigation and control strategies
- Regulatory management framework
- Integrated risk management
- Analysis of real-world risk management cases and scenarios
Learning activities and teaching methods (given in hours of study time)
| Scheduled Learning and Teaching Activities | Guided independent study | Placement / study abroad |
|---|---|---|
| 30 | 270 |
Details of learning activities and teaching methods
| Category | Hours of study time | Description |
|---|---|---|
| Scheduled learning and teaching activities | 30 | Masterclasses (in-person and online) |
| Guided independent study | 270 | Research, reading contents on ELE, assessment preparation and web-based activities including external resources if applicable. |
Formative assessment
| Form of assessment | Size of the assessment (eg length / duration) | ILOs assessed | Feedback method |
|---|---|---|---|
| Problem sets and applied exercises | variable | 1-13 | Online feedback |
Summative assessment (% of credit)
| Coursework | Written exams | Practical exams |
|---|---|---|
| 100 | 0 | 0 |
Details of summative assessment
| Form of assessment | % of credit | Size of the assessment (eg length / duration) | ILOs assessed | Feedback method |
|---|---|---|---|---|
| Case Analysis/Individual presentation on case | 50 | Equivalent to 2000-word report or a 15-minute online presentation | 1-13 | Marks and individual feedback. |
| Coursework assignment | 50 | 3000-word report | 1-13 | Marks and individual feedback (written). |
Details of re-assessment (where required by referral or deferral)
| Original form of assessment | Form of re-assessment | ILOs re-assessed | Timescale for re-assessment |
|---|---|---|---|
| Case Analysis/Individual presentation on case | 50%, Equivalent to 2000-word report or a 15-minute online presentation | 1-13 | In line with university regulations |
| Coursework assignment | 50%, 3000-word written assignment | 1-13 | In line with university regulations |
Re-assessment notes
Deferral – if you have been deferred for any assessment you will be expected to submit the relevant assessment. The mark given for a re-assessment taken as a result of deferral will not be capped and will be treated as it would be if it were your first attempt at the assessment.
Referral – if you have failed the module overall (i.e. a final overall module mark of less than 40%) you will be expected to submit the relevant assessment. The mark given for a re-assessment taken as a result of referral will be capped at 40%
Indicative learning resources - Basic reading
Recommended Text:
- Dill, Alexander. (2020). Bank Regulation, Risk Management, and Compliance. Routledge.
- Koch, T.W. (2015) Bank Management, Cengage Learning.
- Hull, J. C. (2023). Risk Management and Financial Institutions (6?th?ed.). Wiley Finance.
- Saunders, A., Cornett, M. and Erhemjamts, O. (2021).?Financial Institutions Management: A Risk Management Approach?(11th?ed.). New York: McGraw Hill.
- Thompson, C. & Hopkin P. (2021) Fundamentals of Risk Management: Understanding, Evaluating and Implementing Effective Enterprise Risk Management. (6th ed.). Kogan Page
Supplementary Text:
- Fraser R.S. J., Simkins B. & Narvaez, K. (2014). Implementing Enterprise Risk Management: Case Studies and Best Practices. Wiley
- Lynch, D., Hasan, I. & Siddique, A. (Eds). (2023). Validation of Risk Management Models for Financial Institutions: Theory and Practice. Cambridge, UK: Cambridge University Press.
Web-based and electronic resources:
Other resources:
ELE – Web-based and electronic resources will be posted and made available throughout the module
| Credit value | 30 |
|---|---|
| Module ECTS | 15 |
| NQF level (module) | 5 |
| Available as distance learning? | Yes |
| Origin date | 13/05/2025 |
