| CODE | BKF5290 | |||||||||
| TITLE | Risk Management and Finance Ethics | |||||||||
| UM LEVEL | 05 - Postgraduate Modular Diploma or Degree Course | |||||||||
| MQF LEVEL | 7 | |||||||||
| ECTS CREDITS | 5 | |||||||||
| DEPARTMENT | Banking and Finance | |||||||||
| DESCRIPTION | The study-unit covers financial risk management, including market, credit and operational risks, with application to asset management and banking, and also, to a more limited extent to insurance companies, corporate treasuries and pension funds. A holistic view is taken, combining the practical and pragmatic application of quantitative techniques with qualitative considerations on risk governance and the context in which risk management is conducted. The governance of risk management is introduced and applicable regulations are mentioned. Practical aspects of managing market and credit risks are discussed. Finance ethics, professional standards (e.g. in the well known form promoted by CFA Institute) are explained, providing development of skills of judgment, understanding ethical lapses and potential risks through theory and examples from practice. Study-Unit Aims: The study-unit aims to provide a broad overview of risk management, enabling students to achieve a pragmatic understanding of the order of magnitude of key risks, even before they embark on complex calculations. It drives home the key differences between risk measurement/risk control/risk management. The Finance Ethics piece enables students to develop judgment skills in complex and challenging financial situations. Learning Outcomes: 1. Knowledge & Understanding: By the end of the study-unit the student will be able to: - Acquire a substantive knowledge of the most commonly used methods of risk management and achieve a critical understanding of their relevance and limitations; - Define and recognise the main ethical issues in finance and their impact. 2. Skills: By the end of the study-unit the student will be able to: - Calculate risk measures (including identifying relevant data in a pragmatic way); - Master the basic steps on using derivatives for risk management; - Advance their critical thinking skills; - Judging and deciding on ethically challenging situations in finance. Main Text/s and any supplementary readings: - Lecturer's notes. - Quantitative Risk Management by McNeil, Frey and Embrechts,chapter 2, 8 and pp 184-210. - Theory of Financial Risks, by Bouchaud and Potters, chapter 1). - Risk Management and Financial Institution by John Hull, fourth edition, chapt.15, 16, 19, 20, 23 and 24. - Article: Physics Envy May Be Hazardous To Your Wealth! by Andrew W. Lo and Mark T. Mueller, Working Paper, 2010. |
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| STUDY-UNIT TYPE | Lecture | |||||||||
| METHOD OF ASSESSMENT |
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| LECTURER/S | Giuseppe Ballocchi |
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The University makes every effort to ensure that the published Courses Plans, Programmes of Study and Study-Unit information are complete and up-to-date at the time of publication. The University reserves the right to make changes in case errors are detected after publication.
The availability of optional units may be subject to timetabling constraints. Units not attracting a sufficient number of registrations may be withdrawn without notice. It should be noted that all the information in the description above applies to study-units available during the academic year 2023/4. It may be subject to change in subsequent years. |
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