Module Specification

The information contained in this module specification was correct at the time of publication but may be subject to change, either during the session because of unforeseen circumstances, or following review of the module at the end of the session. Queries about the module should be directed to the member of staff with responsibility for the module.
1. Module Title FINANCIAL RISK MANAGEMENT
2. Module Code ACFI342
3. Year Session 2023-24
4. Originating Department Management School
5. Faculty Fac of Humanities & Social Sci
6. Semester Second Semester
7. CATS Level Level 6 FHEQ
8. CATS Value 15
9. Member of staff with responsibility for the module
Dr DE Avino Finance and Accounting D.Avino@liverpool.ac.uk
10. Module Moderator
11. Other Contributing Departments  
12. Other Staff Teaching on this Module
Ms L Brough Management School L.Brough@liverpool.ac.uk
Mr NA Owen Management School Neil.Owen@liverpool.ac.uk
Mr C McCall-Twentyman Management School C.Mccall-Twentyman@liverpool.ac.uk
Miss JV Jones Management School Jade.Jones@liverpool.ac.uk
Mr TE Lloyd Management School Thomasl@liverpool.ac.uk
Mr MR McDonough Management School Michael.Mcdonough@liverpool.ac.uk
Miss RD Hughes Management School Rebekah.Hughes@liverpool.ac.uk
Mr L Dowdall Management School Luke.Dowdall@liverpool.ac.uk
Mr LA Bedeau Management School Leon.Bedeau@liverpool.ac.uk
Miss NE Wood Management School N.E.Wood@liverpool.ac.uk
Mr DRA Horne Management School D.Horne@liverpool.ac.uk
Miss D Gildea IPH Professional Services Dionne.Gildea@liverpool.ac.uk
13. Board of Studies
14. Mode of Delivery
15. Location Main Liverpool City Campus
    Lectures Seminars Tutorials Lab Practicals Fieldwork Placement Other TOTAL
16. Study Hours 24

6

      12

42
17.

Private Study

108
18.

TOTAL HOURS

150
 
    Lectures Seminars Tutorials Lab Practicals Fieldwork Placement Other
19. Timetable (if known)            
 
20. Pre-requisites before taking this module (other modules and/or general educational/academic requirements):

 
21. Modules for which this module is a pre-requisite:

 
22. Co-requisite modules:

 
23. Linked Modules:

 
24. Programme(s) (including Year of Study) to which this module is available on a mandatory basis:

25. Programme(s) (including Year of Study) to which this module is available on a required basis:

26. Programme(s) (including Year of Study) to which this module is available on an optional basis:

27. Aims
 

The module builds on the foundations of the existing finance modules and aims to give students a solid grounding in terms of understanding the recent global financial crisis and a wide range of risk management tools available to financial managers. Particular emphasis is placed on the issue of risk measurement. The following types of risk will be analysed extensively: Interest rate risk, FX risk, Market risk, Credit risk, Liquidity risk and Capital adequacy. The class is run as a discussion based forum.

 
28. Learning Outcomes
 

(LO1) Students will be able to understand how risk management contributes to value creation

 

(LO2) Students will be able to understand how the foreign exchange market operates, the risk it poses and related hedging methods

 

(LO3) Students will be able to explain the causes of the recent global credit crisis

 

(LO4) Students will be able to overview the risks facing a modern corporation

 

(LO5) Students will be able to analyse the effects of interest rate volatility on risk exposure

 

(LO6) Students will be able to examine market risk, which results when companies actively trade bonds, equities and other securities

 

(LO7) Students will be able to examine how credit risk adversely impacts a financial institution’s profits

 

(LO8) Students will be able to analyse the problems created by liquidity risk

 

(LO9) Students will be able to become familiar with the concept of capital adequacy and also with the Basel Accords

 

(S1) Adaptability

 

(S2) Numeracy

 

(S3) Problem solving skills

 

(S4) Teamwork

 

(S5) Organisational skills

 

(S6) Communication skills

 

(S7) IT skills

 

(S8) International awareness

 

(S9) Lifelong learning skills

 

(S10) Ethical awareness

 
29. Teaching and Learning Strategies
 

Teaching Method: Lecture
Scheduled Directed Student Hours: 24
Attendance Recorded: Yes

Teaching Method: Seminar
Scheduled Directed Student Hours: 6
Attendance Recorded: Yes

Teaching Method: Group Study
Description: Weekly 1 hour session to foster student community and engagement by working with others on their ‘active learning’ activities
Scheduled Student Hours: 12
Attendance Recorded: No

Self-Directed Learning Hours: 108
Description: Completion of assigned reading, review of lecture materials, preparation for assessments

Skills/Other Attributes Mapping

Skills / attributes: Adaptability
How this is developed: Lectures, workshops and directed study
Mode of assessment (if applicable)

Skills / attributes: Numeracy
How this is developed: Lectures, workshops and directed study
Mode of assessment (if applicable)
Examination

Skills / attributes: Problem solving sk ills
How this is developed: Lectures, workshops and directed study
Mode of assessment (if applicable)
Examination

Skills / attributes: Teamwork
How this is developed: Lectures, workshops and directed study
Mode of assessment (if applicable)

Skills / attributes: Organisational skills
How this is developed: Lectures, workshops and directed study
Mode of assessment (if applicable)

Skills / attributes: Communication skills
How this is developed: Lectures, workshops and directed study
Mode of assessment (if applicable)

Skills / attributes: IT skills
How this is developed: Lectures, workshops and directed study
Mode of assessment (if applicable)

Skills / attributes: International awareness
How this is developed: Lectures, workshops and directed study
Mode of assessment (if applicable): Examination

Skills / attributes: Lifelong learning skills
How this is developed: Lectures, workshops and directed study
Mode of assessment (if applicable)

Skills / attributes: Ethical awareness
How this is developed: Lectures, workshops and directed study
Mode of assessment (if applicable): Examination

 
30. Syllabus
   

Introduction to Risk Management: Why Manage Risk?
Measuring Risk
Interest Rate Risk I
Interest Rate Risk II
Market Risk
Foreign Exchange Risk
Credit Risk I
Credit Risk II
Liquidity Risk
Capital Adequacy

 
31. Recommended Texts
  Reading lists are managed at readinglists.liverpool.ac.uk. Click here to access the reading lists for this module.
 

Assessment

32. EXAM Duration Timing
(Semester)
% of
final
mark
Resit/resubmission
opportunity
Penalty for late
submission
Notes
  Assessment: MCQ Assessment type: Examination Duration: 1 hour Weighting: 20% Reassessment Opportunity: Yes Penalty for Late Submission: Standard UoL penalty applies Anonymous Assessment: Yes 1 20
  Assessment: Written Unseen Examination Assessment Type: Written Exam Duration: 2 hours Weighting: 80% Reassessment Opportunity: Yes Penalty for Late Submission: Standard UoL penalty applies 2 80
33. CONTINUOUS Duration Timing
(Semester)
% of
final
mark
Resit/resubmission
opportunity
Penalty for late
submission
Notes