Postgraduate Course: Introduction to Risk Management in Banks (CMSE11479)
Course Outline
| School | Business School |
College | College of Arts, Humanities and Social Sciences |
| Credit level (Normal year taken) | SCQF Level 11 (Postgraduate) |
Availability | Not available to visiting students |
| SCQF Credits | 10 |
ECTS Credits | 5 |
| Summary | 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. This course focuses on identifying, measuring and managing the most typical risks in financial institutions. |
| Course description |
Academic 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.
Outline Content
- Risks of financial institutions
- Interest rate risk and market risk
- Credit risk
- Off-balance sheet risk
- Foreign exchange risk
- Liquidity risk
- Sovereign risk and operational risk
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.
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Entry Requirements (not applicable to Visiting Students)
| Pre-requisites |
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Co-requisites | |
| Prohibited Combinations | |
Other requirements | None |
Course Delivery Information
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| Academic year 2020/21, Not available to visiting students (SS1)
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Quota: None |
| Course Start |
Block 2 (Sem 1) |
Timetable |
Timetable |
| Learning and Teaching activities (Further Info) |
Total Hours:
100
(
Lecture Hours 10,
Seminar/Tutorial Hours 2,
Programme Level Learning and Teaching Hours 2,
Directed Learning and Independent Learning Hours
86 )
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| Assessment (Further Info) |
Written Exam
0 %,
Coursework
100 %,
Practical Exam
0 %
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| Additional Information (Assessment) |
Coursework (Individual) 100%
The essay questions on the assignment - worth 100% of the marks - cover all the course's learning outcomes. |
| Feedback |
Summary feedback on the coursework will be made available to the students following the timetable defined by the University/Business School. |
| No Exam Information |
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.
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Reading List
Saunders, A., M. Cornett (2018). Financial Institutions Management - A Risk Management Approach. McGraw-Hill, 9th edition. (Main textbook)
Bessis, Jol (2010). Risk Management in Banking. John Wiley and Sons, 3rd edition.
Hull, J., (2018). Risk Management and Financial Institutions, John Wiley and Sons 5th edition.
Gup, B., J. Kolari (2005). Commercial Banking -The Management of Risk. John Wiley and Sons, 3rd edition.
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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.
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| Additional Class Delivery Information |
The class will be taught in hybrid form consisting principally of a mix of multiple recorded lectures plus tutorials that may be taught online and/or face to face when conditions allow. |
| Keywords | Not entered |
Contacts
| Course organiser | Dr Yizhe Dong
Tel: (0131 6)51 7112
Email: Yizhe.Dong@ed.ac.uk |
Course secretary | Ms Rhiannon Pilkington
Tel: (0131 6)50 8072
Email: Rhiannon.Pilkington@ed.ac.uk |
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