Postgraduate Course: Introduction to Risk Management in Banks (CMSE11167)
Course Outline
| School | Business School |
College | College of Humanities and Social Science |
| Credit level (Normal year taken) | SCQF Level 11 (Postgraduate) |
Availability | Available to all students |
| SCQF Credits | 15 |
ECTS Credits | 7.5 |
| Summary | This course focuses on identifying, measuring and managing the most typical risks in financial institutions. |
| Course description |
Managers in a risk function in banks must understand the nature and sources of risks that depositors, equity holders and debt holders are subject to. The aim of this course is to give the student a detailed knowledge of the nature of these risks, how to measure the exposure that a bank has to such risks and an understanding of some ways in which such risks can be managed by a bank.
Syllabus
Risks of Financial Intermediation
Interest Rate Risk - Part I
Interest Rate Risk - Part II
Market Risk
Credit Risk
Foreign Exchange Risk
Sovereign Risk
Technology and other Operational Risks
Liquidity Risk, Liability and liquidity risk management
Loan sales and Collateralisation
Student Learning Experience
Students will be exposed to theoretical explanations and practical applications of the material covered in all lectures. They will be able to review the topics in the respective tutorials one week after the material is first introduced. The solutions of the exercises proposed will be discussed and students will be welcome to ask questions in lectures, tutorials, by email or in the lecturer's office (by appointment).
|
Entry Requirements (not applicable to Visiting Students)
| Pre-requisites |
|
Co-requisites | |
| Prohibited Combinations | |
Other requirements | None |
Information for Visiting Students
| Pre-requisites | None |
| High Demand Course? |
Yes |
Course Delivery Information
|
| Academic year 2016/17, Available to all students (SV1)
|
Quota: None |
| Course Start |
Semester 1 |
Timetable |
Timetable |
| Learning and Teaching activities (Further Info) |
Total Hours:
150
(
Lecture Hours 20,
Seminar/Tutorial Hours 8,
Summative Assessment Hours 2,
Programme Level Learning and Teaching Hours 3,
Directed Learning and Independent Learning Hours
117 )
|
| Additional Information (Learning and Teaching) |
prep. for summative assessment 61; prep. reading for lectures 40; prep. for tutorials 16.
|
| Assessment (Further Info) |
Written Exam
70 %,
Coursework
30 %,
Practical Exam
0 %
|
| Additional Information (Assessment) |
Form of Assessment:
- Individual assignment (30% of final mark) on Interest Rate Risk and Market Risk (based on the material covered from week 1 to week 4).
- Final exam (70% of final mark): based on all topics covered in the course.
Assessment Criteria:
Students will be evaluated in terms of their capacity to identify the types of risk faced by financial institutions, solving numerical questions associated to risk management, interpreting the results, and understanding models to measure risk and strategies regarding risk management. |
| Feedback |
All students will be given at least one formative feedback or feedforward event for every course they undertake, provided during the semester in which the course is taken and in time to be useful in the completion of summative work on the course. Such feedback may be at course or programme level, but must include input of relevance to each course in the latter case.
Feedback on formative assessed work will be provided within 15 working days of submission, or in time to be of use in subsequent assessments within the course, whichever is sooner. Summative marks will be returned on a published timetable, which has been made clear to students at the start of the academic year.
Students will gain feedback on their understanding of the material when they discuss their answers to the tutorial questions in the tutorials. Students may also ask questions in Lectures to assess their knowledge.
Feedback will comprise individual feedback forms on the assignment regarding Interest Rate Risk and Market Risk (based on weeks 1-4). |
| Exam Information |
| Exam Diet |
Paper Name |
Hours & Minutes |
|
| Main Exam Diet S1 (December) | Introduction to Risk Management in Banks | 2:00 | |
Learning Outcomes
On completion of this course, the student will be able to:
- Know and critically evaluate the nature of different types of risks that banks face: interest rate risk, market risk, credit risk, foreign exchange risk, sovereign risk, liquidity risk and insolvency risk;
- Understand and critically discuss how different types of risks relate to items on a bank's balance sheet;
- Understand and critically discuss the causes and sources of these risks;
- Understand and critically discuss how to measure such risks and of the strengths and weaknesses of different measures;
- Understand and critically discuss strategies of how to manage certain of these risks.
|
Reading List
| Saunders, A & Cornett, M (2011) A Financial Institutions Management: A Risk Management Approach. McGraw Hill, 7th ed. |
Additional Information
| Graduate Attributes and Skills |
Cognitive Skills:
After completing this course, students should be able to:
- Use appropriate concepts to appropriately address the problem of how to measure the size of certain types of risk that banks face;
- Interpret the meaning of values of different risk measures;
- Evaluate assessments of risk given to a manager of a bank by specialists.
Subject Specific Skills:
After completing this course, students should be able to:
- Communicate complex technical issues coherently and precisely;
- Quantitatively analyse concepts concerning the nature of risks;
- Work intensively and methodically to understand technical issues. |
| Keywords | Not entered |
Contacts
| Course organiser | Mr Mahmoud Fatouh
Tel: (0131 6)50 3809
Email: Mahmoud.Fatouh@ed.ac.uk |
Course secretary | Miss Ashley Harper
Tel: (0131 6)51 5671
Email: Ashley.Harper@ed.ac.uk |
|
© Copyright 2016 The University of Edinburgh - 3 February 2017 3:37 am
|
University Homepage