Risk Management, 7.5 Credits

Contents

A general principal in finance is that there is a trade-off between expected return and risk. Minimizing the cost of risk to an optimum level unanimously means increasing the value of a firm. Much has happened in financial markets that has highlighted the importance of risk management in financial institutions. The module covers traditional risks such as market and credit risks, and then focuses on recent developments regarding liquidity, operational and model risks. It combines discussions around the concepts and mathematical approaches of volatility and Value at Risk and also highlights the role of trading, regulations and innovations. Students are focused on the way risks are managed by financial institutions, but many of the ideas are equally applicable to all kinds of businesses. The module contents are aligned with the FRM Certification, Exam Part 1, delivered by the Global Association of Risk Professionals (GARP)

The course has a number of goals for the development of generic skills. After completing the course, the student should be able to:

• analyze and frame problems in the financial area
• understand and evaluate financial management related issues from an ethical perspective
• work effectively in team environments
• plan, conduct, and present investigations, both orally and in writing

Expected learning outcomes

After completing the module, the student should be able to

• integrate knowledge from a broad range of risk management concepts and techniques
• analyse the effects of Basel III and other types of regulation.
• demonstrate analytical and integrative skills in solving advanced tasks within strategic risk management
• produce detailed and coherent reports in matters related to assessing risk management in real-life financial institutions.
• understand and apply ethical/professional rules in learning and conduct
• evaluate own competence and own need for competence development in order to work with financial management

Required Knowledge

90 credits out of which 75 credits in Business Administration whereof 15 credit bachelor courses or equivalent. Approved 52,5 credits whereof 7,5 credits in bachelor courses.At least 7,5 credits in Finance courses.

It required to have broad knowledge of different specializations within the subject of Business Administration i.e. Management, Marketing, Accounting and Finance. Statistics 7.5 credits or equivalent.

Proficiency in English equivalent to Swedish upper secondary course English B, English/6.

Form of instruction

Learning is supported by lectures, seminars, case studies, guest lectures, with bank managers and course papers. The core topics will be covered by lectures and seminars, in which students will be expected to take an active part. Cases related to the topics will also be used. Students are required to make oral presentations at seminars and during case analyses and to submit written course papers. Students will write an individual reflection paper in which they will assess their current performance and identify their needs of further knowledge.
 

Examination modes

Examination is based upon a written individual exam and group assignments (written and/or orally). A passing grade is required for each part of the module.

The following grading system is used:

Pass with distinction (Väl godkänd, VG, 75% or more),

Pass (Godkänd, G, 50% or more)

and Fail (Underkänd U, less than 50%).

Grades on the course are awarded when the student has passed all examinations and compulsory course elements. The course is given and examined in English.

To receive the grade Pass with distinction (VG) in the 30 credits course consisting of four modules of the same size, the student must have achieved Pass with distinction (VG) in at least three out of four modules. In shorter courses for example 7,5 credit courses, 15 credit courses or 22,5 credits courses Pass with distinction (VG) is given when the student has achieved at least 75% of the total weighted points.

A student who does not pass at the time of the written examination will be offered an opportunity to sit a further examination within two months. Beyond that, additional examination opportunities normally arise every academic year, one week prior to the start of the autumn term.

In case of failure on seminar participation or individual and group assignments, compensating assignments must be completed in accordance with instructions given, no later than two weeks after the completion of the module. Mandatory assignments (seminars, written assignments, cases, computer assignments etc.) that have not been handed in within stipulated time must be done the next time the course is offered. If the form of examination does not permit repetition other forms of re-examination may be used.

When a student has failed an examination on two occasions, he or she has a right to have another grading teacher. A written request for an alternative examiner should be handed to the director of studies no later than two weeks before the next examination opportunity.

A student who has passed an examination can not redo the examination to get a higher grade.

If a student fails to present a photo ID at the occasion of a written exam in an exam room will not be allowed to take the exam.

Disciplinary action may be taken against students who uses unauthorized help aids or in some other way tries to mislead on a test or when another type of task is being evaluated. Rules and regulations concerning the production of academic texts and correct referencing will be applicable to all written assignments. (see instructions in the thesis manual, Thesis Writing in Business Administration). Urkund records may be used for control. In addtion, Umeå University rules and regulations  for education and research applies:  http://www.umu.se/regelverk/utbildning-pa-grund--och-avancerad-niva

Educational activities are designed to facilitate students towards achieving expected learning outcomes and can explain, supplement and provide contrast to the course literature and other relevant course materials.
 

Other regulations

Academic credit transfers are according to the University credit transfer regulations.

This course can not be used in the same degree as 2fe144,2fe108,2fe180,2fe196