Risk Management

Curriculum Guideline

Effective Date:
Course
Discontinued
No
Course Code
FINC 4430
Descriptive
Risk Management
Department
Finance
Faculty
Commerce & Business Administration
Credits
3.00
Start Date
End Term
202030
PLAR
No
Semester Length
15 Weeks X 4 Hours per Week = 60 Hours
Max Class Size
35
Contact Hours
Lecture: 4 Hours Total: 4 Hours
Method(s) Of Instruction
Lecture
Seminar
Learning Activities

Material will be presented within a lecture format.

Course Description
Risk Management is a course that explores the meaning, measurement, and management of financial market risk. The expected utility model will be developed to explore the effect of different attitudes toward risk. Management of financial market risk through the use of derivative securities will be examined in detail. Topics such as liquidity risk management, credit risk management, and value at risk will also be examined.
Course Content
  1. Definition of risk.
  2. Measurement of risk.
  3. Attitudes toward risk.
  4. The nature of financial market risk.
  5. The use of forwards, futures, swaps, and options to manage financial market risk.
  6. Liquidity risk management.
  7. Credit risk management.
  8. Value at risk.       
Learning Outcomes

At the end of the course, the successful student should be able to:

  1. analyze and interpret the meaning of risk;
  2. determine the implications of different attitudes toward risk;
  3. analyze the use of derivative securities in managing financial market risk;
  4. analyze issues in liquidity and credit risk management;
  5. analyze and understand the concept of value at risk.
Means of Assessment

Minimum of 3 evaluations, none of which will exceed 40%, for a total of 100%.

Textbook Materials

Textbooks and Materials to be Purchased by Students

 

To be chosen from by the instructor:

 

  • Allen, Steven.  Financial Risk Management, Latest Edition.  John Wiley & Sons, Inc.

 

  • Poitas, Geoffrey.  Risk Management, Speculation, and Derivative Securities, Latest Edition.  Academic Press.
Prerequisites