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Durham University

Postgraduate Modules 2019/2020

Module Description

Please ensure you check the module availability box for each module outline, as not all modules will run in each academic year. Each module description relates to the year indicated in the module availability box. Please be aware that modules may change from year to year, and may be amended to take account of, for example: changing staff expertise, disciplinary developments, the requirements of external bodies and partners, and student feedback.

No such Code for pgprog: N3KA09

Department: Economics and Finance

ECON45715: FINANCIAL RISK MANAGEMENT (ONLINE)

Type Tied Level 4 Credits 15 Availability Available in 2019/20
Tied to N3KA09

Prerequisites

  • None

Corequisites

  • None

Excluded Combination of Modules

  • Financial Risk Management (Taught) - ECON45815

Aims

  • develop students' ability to master the knowledge and understanding at an advanced level of the means by which risk can be managed, primarily through the use of financial derivatives and the problems inherent in using such instruments; 
  • provide students with the opportunity to develop the ability to critically understand academic literature relating to risk management; 
  • provide students with the ability to critically review this specialised complex area of knowledge with a view to undertaking a dissertation in the field of financial risk management in an ethical maner.

Content

  • Hedging Strategies with Futures; 
  • Applied Topics in Futures Markets; 
  • Trading Strategies using Option Contracts; 
  • Option Greeks and Volatility Smiles; 
  • Value at Risk; 
  • Corporate Liabilities as Options; 
  • Credit Risks; 
  • Estimating Volatility and Correlation; 
  • Advanced Topics on Volatility Modelling and Option Pricing.

Learning Outcomes

Subject-specific Knowledge:
  • By the end of the module students should: 
  • have an advanced knowledge and critical understanding of how derivative financial instruments can be used to manage risk and the potential problems associated with using such instruments; 
  • have an advanced understanding of different strategies for managing risk using options and futures, including an understanding of the complexities and problems associated with the use of such strategies; 
  • have explored, understood and appreciated the complexity and contradictions of the current academic literature and its implications for professional practice, and be able to identify open questions for their own research; 
  • have demonstrated the ability to learn and work independently in this area, exercising critical judgement and discrimination in the resolution of complex problematic situations.
Subject-specific Skills:
  • By the end of the module, students should: 
  • have used highly specialised and advanced technical and academic skills to analyse the extent to which risk management is successful. 
  • have practised problem solving and analytical skills in a complex specialised context.
Key Skills:
  • effective written communication skills
  • planning, organising and time management skills
  • problem solving and analytical skills
  • the ability to use initiative
  • advanced skills in the interpretation of data
  • advanced computer literacy skills

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

  • The module is delivered via online learning, divided up into study weeks with specially produced resources within each week. Resources vary according to the learning outcomes but normally include: video content, directed reading, reflection through activities, opportunities for self-assessment and peer-to-peer learning within a tutor-facilitated discussion board. Tutors provide feedback on formative work and facilitate discussion board communication as well as being available for individual consultation as necessary (usually by email and Skype).
  • The summative assessment of the module is a two-hour written examination which will test students' specialist knowledge and critical understanding of the material covered in the module, their problem-solving and analytical skills.

Teaching Methods and Contact Hours

Activity Number Frequency Duration Total/Hours
Video content, directed reading, self-assessed assignments and guidance for further reading 150
Total 150

Summative Assessment

Component: Examination Component Weighting: 100%
Element Length / duration Element Weighting Resit Opportunity
Examination 2 hours 100% Same

Formative Assessment:

A written assignment of 1,500 words based on a case study.


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


    If you have a question about Durham's modular degree programmes, please visit our User Guide. If you have a question about modular programmes that is not covered by the User Guide, or a query about the Postgraduate Module Handbook, please contact us using the Comments and Questions form below.