Program Overview

Award in Investment and Risk Management (Accountancy and Finance)

Overview

This course allows learners to acquire the necessary skills, knowledge, and competence to successfully comprehend and implement risk management strategies. This course shall look at different types of risks and various approaches to risk management. Moreover, learners shall also be exposed to hedging techniques for foreign currencies as well as for interest rate risks.

Awarding Body & Accreditation

This qualification is awarded by eie Institute of Education and is accredited by the Malta Further and Higher Education Authority (MFHEA). MFHEA deems this Award to be at MQF Level 6 (12 ECTS) of the Malta Qualifications Framework and the European Qualifications Framework for lifelong learning.

Learning Outcomes

Competences:

• Carry out effective risk management approaches in relation to investments
• Ensure the effective implementation of various hedging techniques for foreign currencies
• Monitor causes of fluctuations in exchange rates
• Carry out basic forecasting of fluctuations in exchange rates
• Carry out calculations for investment cash flow requirements, payback period, discounted payback, return on capital employed, net present value and internal rate of return
• Be responsible for the calculations of cash flows required for investments
• Carry out calculations reflecting investment appraisal
• Implement adjustments for risks and uncertainties within investment decisions

Knowledge:

• Critically describe and analyse various types of foreign currencies and their risks such as transaction, economic, and translation risks
• Critically list and evaluate various types of interest rate risks such as basis risk and gap exposure
• List and review the potential causes of differences in exchange rates as well as potential fluctuations in interest rates
• Have knowledge of exchange rate fluctuations such as balance of payments, interest rate parity theory, purchasing power parity theory and four-way equivalence
• Recall various ways to forecast changes in exchange rates
• Critically list and analyse methods of risk management to be applied to foreign currency
• Discuss in detail the various foreign currency derivatives used for the purpose of hedge foreign currency risk
• List and analyse various investment appraisal techniques
• Discuss methods of calculating discounted payback and its relevance as an investment appraisal method
• Recall the ways to calculate return on capital employed
• Have knowledge on ways to calculate the net present value
• Have knowledge on ways to calculate rate of return
• Define and analyse the differences between uncertainty and risk from an investment point of view
• Recall the use of sensitivity analysis to aid in investment decision making
• Have knowledge of probability analysis in relation to investment decisions
• Recall ways to aid in adjusting for risks and uncertainty in investments
• Recall various investment decisions including asset replacement, lease or buy and capital rationing

Skills:

• Use interest rate parity and purchasing power parity to forecast changes in exchange rates
• Examine in detail and exemplify the causes of interest rate fluctuations using liquidity preference theory, yield curves, structures of interest rate, expectations theory and market segmentation
• Apply methods such as asset and liability management, forward exchange rates, leading and lagging, netting and matching, money market hedging, and currency of invoice for currency risk management
• Compare and contrast between the traditional approach to foreign currency risk management
• Use foreign currency derivatives for hedge foreign currency risks
• Apply basic calculations to identify the cash flow required for investment projects as well as calculate the estimated payback period
• Use the discounted payback method and analyse its usefulness and reliability to be used as an investment appraisal technique
• Apply basic calculations to identify the return on capital employed and analyse its usefulness and effectiveness as an investment appraisal method
• Use sensitivity analysis and describe its effectiveness in relation to decision making in investments
• Apply simulation, risk-adjusted discount rates and adjusted paybacks

How this course will be taught

This course shall be taught with a student-centred approach whereby learners are encouraged to take active participation in their own learning. Learners shall be presented with PowerPoint presentations, case-study examples, and other interactive learning materials. Students will be asked to discuss and exchange communication amongst each other (classroom or online, as per learning mode chosen).

Assessment

The course shall be assessed using an assignment (75%) of 2,000 words. Learners are also expected to undergo a classroom assessment including discussions, multiple-choice assessments and/or observation (25%). Moreover, learners are expected to obtain a minimum of 50% of the total mark to successfully pass from the module.

Fees

• Total lecture hours: 60
• Fees: €1,800.00
• Get Qualified Scheme: Whole course will cost you €540 after Tax Credit - Save €1,260

Duration

• Classroom or Online Mode
• Duration: 60 hours

Accreditation

• MQF / EQF Level: Level 6, 12 ECTS
• Awarded by: eie Institute of Education
• Accredited by: Malta Further and Higher Education Authority (MFHEA)