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Durham University

Postgraduate Module Handbook 2021/2022

Archive Module Description

This page is for the academic year 2021-22. The current handbook year is 2022-23
No such Code for pgprog: N1K017
No such Code for pgprog: N1KC17

Department: Management and Marketing

BUSI49215: FINANCIAL RISK MANAGEMENT (FT)

Type Tied Level 4 Credits 15 Availability Not available in 2021/22
Tied to N1K017
Tied to N1KC17

Prerequisites

  • Managing Finance 1

Corequisites

  • None.

Excluded Combination of Modules

  • None.

Aims

  • To build on the core module 'Managing Finance 1' by providing students with the advanced knowledge needed to understand the strategies proposed by specialist practitioners in the field (e.g. corporate treasurers), and the skills to contribute to discussions of risk management up to board level.

Content

  • Portfolio management styles for assets, liabilities and liquidity: Passive, Active, Strategic.
  • Forwards, futures and swaps.
  • Options.
  • Structured derivatives and their application.
  • Computational methods and software.
  • Current conjecture: global risks today.

Learning Outcomes

Subject-specific Knowledge:
  • Upon successful completion of the module, the students will have a critical understanding of:
  • institutional aspects of generic bonds, bills, forwards, futures, swaps and options (‘financial derivatives’ henceforth);
  • techniques of asset portfolio management, with particular emphasis on bond and bill portfolios;
  • general techniques used in the valuation of financial derivatives;
  • hedging techniques using structured financial derivatives;
  • computational methods for financial risk assessment and management;
  • current conjecture: what are the main global sources of risk today?
Subject-specific Skills:
  • Upon successful completion of the module, the students will be able to:
  • identify and evaluate the principal financial risks faced by a large company;
  • identify and evaluate the methods by which those risks can be managed, and the extent to which such methods should be used;
  • devise and propose credible financial risk management strategies based on a range of generic, and structured, financial derivatives;
  • critically assess financial risk management strategies proposed by a company’s risk management practitioners;
  • identify key sources of information regarding developments in financial risk (press, publications of regulators etc) and its management.
Key Skills:
  • Written communication; planning, organising and time management; problem solving and analysis; using initiative; computer literacy.
  • Written communication; planning, organising and time management; problem solving and analysis; using initiative; computer literacy.

Modes of Teaching, Learning and Assessment and how these contribute to the learning outcomes of the module

  • Learning outcomes will be met through a combination of lectures, groupwork, case studies and discussion, supported by guided reading. The written assignment will test students’ understanding of relevant concepts and their ability to apply and interpret what they have learned to the analysis of a particular issue in depth.

Teaching Methods and Learning Hours

Activity Number Frequency Duration Total/Hours
Workshops (a combination of lectures, groupwork, case studies and discussion) 28
Preparation and Reading 122
Total 150

Summative Assessment

Component: Written Assignment Component Weighting: 100%
Element Length / duration Element Weighting Resit Opportunity
Written Assignment 4,000 words maximum 100%

Formative Assessment:

Feedback on contributions to class discussions.


Attendance at all activities marked with this symbol will be monitored. Students who fail to attend these activities, or to complete the summative or formative assessment specified above, will be subject to the procedures defined in the University's General Regulation V, and may be required to leave the University