Unit information: Risk Management in 2022/23

Unit name	Risk Management
Unit code	EFIM30057
Credit points	20
Level of study	H/6
Teaching block(s)	Teaching Block 1 (weeks 1 - 12)
Unit director	Dr. Dai
Open unit status	Not open
Units you must take before you take this one (pre-requisite units)	Corporate Finance and Valuation Asset Markets Quantitative Methods for Finance 1 Financial Data
Units you must take alongside this one (co-requisite units)	Quantitative Methods for Finance 2
Units you may not take alongside this one	None
School/department	School of Accounting and Finance - Business School
Faculty	Faculty of Social Sciences and Law

Unit Information

The unit will analyse the nature of risk in financial markets and the techniques used by investors and managers to control it. “Risk management” comprises related but different topics. For example:

• The measurement (value at risk, drawdown) and management (portfolio insurance, hedging…) of risk in a market or corporate context
• The relationships between exchange rates, interest rates and inflation rates, forward, futures and options markets, and corporate exchange rate risk management
• Empirical properties of market prices (fat tails, volatility clusters) and forecasting of prices
• Concepts of financial risk (volatility, Value-at-Risk)
• Univariate and multivariate volatility models (ARCH, GARCH)
• Implementation and evaluation of risk forecasts
• Endogenous risk

Your learning on this unit

Students will be able to:

1. Understand the nature of risk in financial markets and the techniques used by investors and managers to control it
2. Understand the relationship between financial theory and empirical testing
3. Use computer packages to manipulate financial data and carry out statistical and econometric tests
4. Critically evaluate arguments and evidence
5. Analyse and identify the components of a problem.

How you will learn

Teaching will be delivered through a combination of synchronous and asynchronous sessions including lectures, tutorials, drop-in sessions, discussion boards and other online learning opportunities.

How you will be assessed

Formative assessment

Numerical and data-based classwork assignments that will be handed in and marked with feedback.

Summative assessment

500 word assignment (20%)

2 hour numerical exam (80%).

These both assess all learning outcomes.

Resources

If this unit has a Resource List, you will normally find a link to it in the Blackboard area for the unit. Sometimes there will be a separate link for each weekly topic.

If you are unable to access a list through Blackboard, you can also find it via the Resource Lists homepage. Search for the list by the unit name or code (e.g. EFIM30057).

How much time the unit requires
Each credit equates to 10 hours of total student input. For example a 20 credit unit will take you 200 hours of study to complete. Your total learning time is made up of contact time, directed learning tasks, independent learning and assessment activity.

See the Faculty workload statement relating to this unit for more information.

Assessment
The Board of Examiners will consider all cases where students have failed or not completed the assessments required for credit. The Board considers each student's outcomes across all the units which contribute to each year's programme of study. If you have self-certificated your absence from an assessment, you will normally be required to complete it the next time it runs (this is usually in the next assessment period).
The Board of Examiners will take into account any extenuating circumstances and operates within the Regulations and Code of Practice for Taught Programmes.