Financial Institutions' Risk Management
| Module title | Financial Institutions' Risk Management |
|---|---|
| Module code | BEF3009 |
| Academic year | 2024/5 |
| Credits | 15 |
| Module staff |
| Duration: Term | 1 | 2 | 3 |
|---|---|---|---|
| Duration: Weeks | 11 |
| Number students taking module (anticipated) | 60 |
|---|
Module description
This module introduces you to a conceptual framework for the identification, analysis and management of risk within the context of a modern financial institution. You will explore the role of risk management, including measuring risk and managing risk in financial institutions, and the regulations within the banking and financial services sector. You will understand the special functions of financial institutions and take an analytical look at how financial intermediation benefits today’s economy. While the central theme is identifying and measuring the risks faced by financial institutions, you will learn different approaches to evaluate the practice of cost-effective risk management within financial institutions. Additional Information:??
Internationalisation??
Internationalisation is embedded in the content of this module. The principles of this module are broadly common across most countries.
Sustainability??
All of the other resources for this module are available on the ELE (Exeter Learning Environment).??
Employability?
In this module students will learn skills that are transferable and relevant for jobs in investment banks, corporate finance and many other industries.
Module aims - intentions of the module
The aim of this module is to introduce you to integrated knowledge and critical understanding of risks inherent in financial 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:
- develop critical awareness of the current trends in managing the risks encountered by financial institutions.
- identify and measure the risks inherent in financial institutions and critically evaluate the practice of cost-effective risk management within financial 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.
- understand the current debates about the appropriate regulatory framework.
Intended Learning Outcomes (ILOs)
ILO: Module-specific skills
On successfully completing the module you will be able to...
- 1. Evaluate the nature and significance of risks faced by financial institutions.
- 2. Apply risk management framework and techniques to identify, measure, monitor and control risks.
ILO: Discipline-specific skills
On successfully completing the module you will be able to...
- 3. Develop practical knowledge and application of financial and risk management tools.
- 4. Assess the impact of regulatory requirements on risk management practices in financial institutions.
ILO: Personal and key skills
On successfully completing the module you will be able to...
- 5. Acquire and use data to analyse and solve international case studies.
- 6. Apply independent research and study skills in the exploration of contemporary real-world issues.
Syllabus plan
- Nature and types of risks faced by financial institutions
- Importance of risk management in financial 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 | 120 | 0 |
Details of learning activities and teaching methods
| Category | Hours of study time | Description |
|---|---|---|
| Scheduled Learning and Teaching | 20 | Lectures |
| Scheduled Learning and Teaching | 10 | Tutorials |
| Guided Independent Study | 120 | Reading, research, preparation for lectures, tutorials and assessments |
Formative assessment
| Form of assessment | Size of the assessment (eg length / duration) | ILOs assessed | Feedback method |
|---|---|---|---|
| Weekly tutorial problems for discussion | 3 hours preparation by students/1 hour in class discussion | 1-4 | Indicative answers |
Summative assessment (% of credit)
| Coursework | Written exams | Practical exams |
|---|---|---|
| 70 | 30 | 0 |
Details of summative assessment
| Form of assessment | % of credit | Size of the assessment (eg length / duration) | ILOs assessed | Feedback method |
|---|---|---|---|---|
| In class test | 30 | 1 hour | 1-4 | Indicative answers |
| Assignment | 70 | 2500 words | 1-6 | Written feedback from lecturer |
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 |
|---|---|---|---|
| In class test (30%) | In class test (1 hour, 30%) | 1-4 | August/September re-assessment period |
| Assignment (70%) | Assignment (2500 words, 70%) | 1-6 | August/September re-assessment period |
Indicative learning resources - Basic reading
- Hull, J. C. (2023). Risk Management and Financial Institutions (6th ed), Wiley Finance.
- Lynch, D., Hasan, I. & Siddique, A. (Eds). (2023). Validation of Risk Management Models for Financial Institutions:
Other reading (if interested):
- Theory and Practice. Cambridge, UK: Cambridge University Press.
- Población García, F. J. (2017). Financial Risk Management: Identification, Measurement and Management. Cham: Springer International Publishing: Imprint: Palgrave Macmillan.
- Saunders, A., Cornett, M. and Erhemjamts, O. (2021). Financial Institutions Management: A Risk Management Approach (10th ed), New York: McGraw Hill.
| Credit value | 15 |
|---|---|
| Module ECTS | 7.5 |
| Module pre-requisites | None |
| Module co-requisites | None |
| NQF level (module) | 6 |
| Available as distance learning? | No |
| Last revision date | 05/03/2024 |
