Course Details in 2018/19 Session

Module Title	LM Risk Management
School	Birmingham Business School
Department	Birmingham Business School
Module Code	07 29867
Module Lead	Dr. Hisham Farag
Level	Masters Level
Credits	10
Semester	Semester 2
Pre-requisites
Co-requisites
Restrictions	Only available to students on MSc Investments (Singapore)
Exclusions
Description	This module deals primarily with the management of risk in financial institutions. The nature of risks is discussed with particular emphasis on market and credit risks. Some aspects of option pricing and financial engineering are covered to provide a foundation for studying methods of determining value at risk (VAR). Approaches to modelling credit risk will be reviewed and discussed. The final section of the module will deal with firm-wide risk in non-financial institutions.
Learning Outcomes	By the end of the module, students will be expected to be able to: demonstrate comprehensive knowledge and understanding and critically analyse the main types of risks that face financial and non-financial institutions and the appropriate hedging techniques; explain the mechanism and application of options and futures trading strategies; show a critical understanding and analyse swaps contracts and the pricing of credit default swaps; analyse the concept of Value at Risk (VaR) and the critical use of back and stress testing modules; critically analyse the alternative interest rate hedging strategies of fixed income securities; demonstrate a comprehensive understanding of the concepts of duration, convexity and immunisation for fixed income portfolios and their critical use to hedge against interest rate fluctuations; show a critical understanding of credit risk modules and the application of credit derivatives.
Assessment	29867-01 : 2 Hour Closed Book Examination : Exam (Centrally Timetabled) - Written Unseen (75%) 29867-02 : 1 Hour Test : Class Test (25%)
Assessment Methods & Exceptions	Assessments: A 1-hour test (25%) and a 2-hour closed book examination (75%) Reassessment: a 2-hour closed book examination (100%)
Other
Reading List