BX3133 - Risk Management

Credit points:	03
Year:	2013
Student Contribution Band:	Band 3
Administered by:	School of Business

Risk is an integral part of financial decisions. Following the rapid evolution of financial risk management and increased volatility in the marketplace, this subject is significantly important in the financial management major. This subject provides an overview of the nature of risk and risk management strategies, including the use of financial derivatives in the management of risk from an international perspective. Financial risks and relevant risk measures introduced include market risk (value-at-risk and expected loss), credit risk (ratings and credit derivatives), liquidity risk, operational risk, country and political risk. To compliment the rather quantitative nature of the topics, the subject includes real life examples and case studies.

Learning Outcomes

• demonstrate a basic ability to analyse, evaluate and synthesise quantitative and qualitative information accessed to manage risks;
• identify in the financial statements of institutions the indicators of impending crisis;
• construct portfolios of financial derivative instruments to effectively minimise the potential damaging effects of volatility on institutions' profitability;
• demonstrate and apply financial risk management procedures.

Graduate Qualities

• The ability to adapt knowledge to new situations;
• The ability to think critically, to analyse and evaluate claims, evidence and arguments, and to reason and deploy evidence clearly and logically;
• The ability to deploy critically evaluated information to practical ends;
• The ability to find and access information using appropriate media and technologies;
• The ability to evaluate that information;
• An understanding of the economic, legal, ethical, social and cultural issues involved in the use of information;
• The ability to reflect on and evaluate learning, and to learn independently in a self directed manner;
• The ability to manage future career and personal development;
• The ability to generate, calculate, interpret and communicate numerical information in ways appropriate to a given discipline or discourse;
• The ability to work individually and independently;
• The ability to select and use appropriate tools and technologies;
• The ability to use online technologies effectively and ethically.

Prerequisites:

BX2032 AND (BX2014 OR BU2004 OR CO2601 OR CO2611)

Availabilities
Townsville, Internal, Study Period 1
Census Date 28-Mar-2013
Coord/Lect:	Dr Siqiwen Li.
Contact hours:	26 hours lectures 12 hours tutorials
Assessment:	end of semester exam (50%); other exams (20%); online quizzes (30%).

Note: Minor variations might occur due to the continuous Subject quality improvement process, and in case of minor variation(s) in assessment details, the Subject Outline represents the latest official information.