Bank Risk Measurement and Management
| Code | School | Level | Credits | Semesters |
| BUSI4427 | Business | 4 | 20 | Spring UK |
- Code
- BUSI4427
- School
- Business
- Level
- 4
- Credits
- 20
- Semesters
- Spring UK
Summary
A re-examination of bank asset transformation and risk exposure. Commercial banks’ risk exposures include interest rate risk, credit risk, liquidity risk, sovereign risk, market risk, operational risk, and insolvency risk. The module also provides some comparison between bank regulatory frameworks in countries such as the UK, the US, Canada, and the European Union. Finally, we look at specific issues related to bank risk management such as the use of derivatives.
Target Students
Only available for MSc Banking and Finance students and MSc Exchange students.
Classes
- One 1-hour workshop each week for 6 weeks
- One 1-hour seminar each week for 4 weeks
- One 1-hour lecture each week for 11 weeks
This module is taught through a combination of lectures, seminars and workshops. Asynchronous lecture (video length around 1.5hrs per week).
Assessment
- 50% Coursework: 2,000 words. Reassessment of this module will be 100% coursework (4,000 words).
- 50% Online Exam (2-hour): Online exam. Reassessment of this module will be 100% coursework (4,000 words).
Assessed by end of spring semester
Educational Aims
Education Aims:On successful completion of this module, the student should be able to:● Critically examine the role of banks within an economy.● Examine, define and evaluate the risks associated with operating a commercial bank.● Show a critical understanding of contemporary procedures utilised in the financial risk management of banks.● Analyse and explicate how banks manage risk, including credit, interest rate, liquidity and market risk.● Show an analytical comprehension of operational and conduct risk in banking.● Show an analytical comprehension of the role of capital in risk management in a financial institution.● Analyse and explicate how banks manage risk using derivatives.Learning Outcomes
Knowledge and Understanding
- Finance - the sources, uses and management of finance
- The use of accounting and other information systems for managerial applications
- The management of operations
Intellectual Skills
- Being able to think critically and be creative: manage the creative processes in self and others; organise thoughts, analyse, synthesise and critically appraise. This includes the capability to identify assumptions, evaluate statements in terms of evidence, detect false logic or reasoning, identify implicit values, define terms adequately and generalise appropriately
- Being able to solve complex problems and make decisions: establish criteria, using appropriate decision-making techniques including identifying, formulating and solving business problems; and the ability to create, identify and evaluate options; the ability to implement and review decisions
- Using information and knowledge effectively in order to abstract meaning from information and to share knowledge, including the use of quantitative skills
Professional Practical Skills
- The ability to conduct research and enquiry into business and management issues either individually or as part of a team through research design, the collection and analysis of qualitative data, synthesis and reporting
- Effective performance within team environments and the ability to recognise and utilise individuals' contributions in group processes and to negotiate and persuade or influence others; team selection, delegation, development and management. Leadership and performance management: selecting appropriate leadership style for different situations; setting objectives, motivating, monitoring performance, coaching and mentoring
Transferable (Key) Skills
- Effective communication: networking, listening, oral and written communication of complex ideas and arguments, using a range of media, including the preparation of business reports
- High personal effectiveness: critical self-awareness, self-reflection and self-management; time management; conflict resolution, displaying commercial acumen, the ability to continue to learn through reflection on practice and experience
- Soft skills: understanding the needs of others and empathy towards them; sensitivity to diversity in people and in different situations