Program Overview

Module Overview

Financial risk management focuses on the types of risk that arise for a business, including market risk, credit risk, and interest risk. This module considers financial risk management strategies, how risk is evaluated, the methods available to hedge against risk, and the strategies employed to mitigate risk.

Module Details

• Module code: MAN3097
• Module provider: Surrey Business School
• Module Leader: YU Xinyu (SBS)
• Number of Credits: 15
• ECTS Credits: 7.5
• Framework: FHEQ Level 6
• Module cap (Maximum number of students): N/A

Module Content

Indicative content includes:

• Introduction to Financial Risk Management
• The Financial Crisis
• Interest Rate Risk
• Credit Risk
• Liquidity Risk
• Hedging Strategies with Derivatives
• Derivative trading strategies
• Option pricing models and the use of options in finance

Assessment Pattern

• Assessment type: School-timetabled exam/test
• Unit of assessment: CLASS TEST SET TIME AND DATE (60 mins)
• Weighting: 30
• Assessment type: Examination
• Unit of assessment: EXAM SET TIME AND DATE (2 hours)
• Weighting: 70

Alternative Assessment

Not applicable

Assessment Strategy

The assessment strategy is designed to provide students with the opportunity to demonstrate their understanding of relevant theory and recent developments in financial risk management, and their ability to develop solutions and strategies that can be employed to manage financial risk.

Module Aims

• Develop awareness of the risks faced by financial and non-financial businesses in terms of the financial transactions they undertake.
• Explore the key methods businesses use to evaluate and manage financial risk.
• Explore the reasons for undertaking financial risk management and the strategies that can be employed to reduce risk where necessary.

Learning Outcomes

| | Attributes Developed
---|---|---
001 | Identify and critically appraise potential financial risks in terms of market risk, credit risk, liquidity risk, and interest rate risk. | KC
002 | Evaluate their role in risk management and their impact on management decisions | KC
003 | Analyse and select the appropriate risk management or hedging instrument to mitigate this risk if necessary. | KPT
004 | Recognise the market conventions which apply to risk management instruments. | K
005 | Critically analyse the cost and risk of using financial instruments in order to make sound analytical recommendations or judgements. | CPT

Attributes Developed

• C - Cognitive/analytical
• K - Subject knowledge
• T - Transferable skills
• P - Professional/Practical skills

Methods of Teaching / Learning

The learning and teaching strategy is designed to provide students with the opportunity to identify sources of financial risk for financial and non-financial institutions, and to employ various strategies to evaluate and manage financial risk in a real-world context.

Learning and Teaching Methods

• Elements of lectures, seminars, and guided reading including illustrative practice exercises

Programmes this Module Appears In

• Programme: Accounting and Finance (Dual degree with SII-DUFE) BSc (Hons)
• Semester: 2
• Classification: Optional
• Qualifying conditions: A weighted aggregate mark of 40% is required to pass the module
• Programme: Accounting and Finance BSc (Hons)
• Semester: 2
• Classification: Optional
• Qualifying conditions: A weighted aggregate mark of 40% is required to pass the module

Additional Information

• Global and Cultural Capabilities: This module provides students with a variety of real-life examples across the globe and different perspectives on financial risk management.
• Digital Capabilities: Throughout the module, students learn to navigate and utilise the Virtual Learning Environment and other digital resources to aid their learning.
• Employability: The module provides knowledge and skills to prepare students to successfully pursue a career in the financial sector.
• Resourcefulness & Resilience: Students in this final year module will further develop their confidence, adaptability, problem-solving, and decision-making skills in a variety of fields in finance.
• Sustainability: Teaching materials and readings cover topics in sustainable and green finance.