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 | Available to all 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 |
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.
Tutorial/seminar hours represent the minimum total live hours - online or in-person - a student can expect to receive on this course. These hours may be delivered in tutorial/seminar, lecture, workshop or other interactive whole class or small group format. These live hours may be supplemented by pre-recorded lecture material for students to engage with asynchronously.
|
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 2024/25, Not available to visiting students (SS1)
|
Quota: None |
| Course Start |
Block 2 (Sem 1) |
Timetable |
Timetable |
| Learning and Teaching activities (Further Info) |
Total Hours:
100
(
Seminar/Tutorial Hours 10,
Programme Level Learning and Teaching Hours 2,
Directed Learning and Independent Learning Hours
88 )
|
| Additional Information (Learning and Teaching) |
Seminar/Tutorial hrs are the min total live hrs, online or in-person, students can expect to receive
|
| Assessment (Further Info) |
Written Exam
0 %,
Coursework
100 %,
Practical Exam
0 %
|
| Additional Information (Assessment) |
100% coursework (individual) - assesses all course Learning Outcomes |
| Feedback |
Not entered |
| 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.
|
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.
Resource List:
https://eu01.alma.exlibrisgroup.com/leganto/public/44UOE_INST/lists/27690214950002466?auth=SAML |
Additional Information
| Graduate Attributes and Skills |
Practice: Applied Knowledge, Skills and Understanding
After completing this course, students should be able to:
Work with a variety of organisations, their stakeholders, and the communities they serve - learning from them, and aiding them to achieve responsible, sustainable and enterprising solutions to complex problems.
Communication, ICT, and Numeracy Skills
After completing this course, students should be able to:
Convey meaning and message through a wide range of communication tools, including digital technology and social media; to understand how to use these tools to communicate in ways that sustain positive and responsible relationships.
Critically evaluate and present digital and other sources, research methods, data and information; discern their limitations, accuracy, validity, reliability and suitability; and apply responsibly in a wide variety of organisational contexts.
Cognitive Skills
After completing this course, students should be able to:
Be self-motivated; curious; show initiative; set, achieve and surpass goals; as well as demonstrating adaptability, capable of handling complexity and ambiguity, with a willingness to learn; as well as being able to demonstrate the use digital and other tools to carry out tasks effectively, productively, and with attention to
quality.
Knowledge and Understanding
After completing this course, students should be able to:
Demonstrate a thorough knowledge and understanding of contemporary organisational disciplines; comprehend the role of business within the contemporary world; and critically evaluate and synthesise primary and secondary research and sources of evidence in order to make, and present, well informed and transparent organisation-related decisions, which have a positive global impact.
Identify, define and analyse theoretical and applied business and management problems, and develop approaches, informed by an understanding of appropriate quantitative and/or qualitative techniques, to explore
and solve them responsibly. |
| Keywords | Not entered |
Contacts
| Course organiser | Dr Yizhe Dong
Tel: (0131 6)51 7112
Email: Yizhe.Dong@ed.ac.uk |
Course secretary | Miss Aoife McDonald
Tel: (0131 6)50 8074
Email: Aoife.McDonald@ed.ac.uk |
|
|
University Homepage