Latest Module Specifications
Current Academic Year 2025 - 2026
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Description To purpose of this module is to develop students knowledge of the tools and techniques of managing financial and other forms of risk in the modern business environment - to include sovereign institutions as well as financial and non-financial corporations. In this module students will develop their knowledge of the risk management function as well as the principal risk management instruments and strategies. Students will develop the skills to value such instruments and strategies. This module is delivered through a combination of weekly lectures and on-line learning tools, including moodle quizes. Students are expected to attend lectures and to engage in on-line learning and research activities on a regular basis. In addition students will undertake problem sets and read recommended expert articles. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Learning Outcomes 1. Describe forms of financial risk facing governments, financial and non-financial corporations, and recommend risk management strategies and solutions to counter these risks. 2. Evaluate arguments for and against hedging foreign exchange rate risk. 3. Evaluate interest rate risk management metrics and interest rate risk management securities and strategies, including interest rate derivatives 4. Critique methodologies for the management of other types of risk such as value at risk, Creditmetricsâ„¢, and to evaluate recent innovations in product development for risk management. 5. Explain the risk management issues that arise out of the relationship between individual economic agents, corporates and government within the global economy, and suggest appropriate policy responses. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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All module information is indicative and subject to change. For further information,students are advised to refer to the University's Marks and Standards and Programme Specific Regulations at: http://www.dcu.ie/registry/examinations/index.shtml |
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Indicative Content and Learning Activities
Introduction to the Risk-management Environment This section will introduce the principal characteristics of financial and other related forms of risk facing sovereigns and corporates. It will look at the objectives of the risk management function within such institutions Foreign Exchange Risk This section will examine the forms of foreign exchange exposure and evaluate the tools and techniques for managing this exposure from a number of different perspectives. Interest Rate Risk This section will explain how to define and measure interest rate risk across a variety of institutional perspectives. It will enable students evaluate these risks as well as the tools and instruments to counter this risk. Volatility This section introduces volatility and some classic models of volatility, ARCH and GARCH, EWMA , and considers their applications in risk management. Market Risk & Related This section extends students understanding of risk management by defining other forms of risk such as market risk and credit risk. It will present and critique methodologies for dealing with such risk such as value-at-risk (VaR), credit value-at-risk, Cat bonds and credit risk derivatives and will examine valuation tools for such instruments. Risk Management and Moral hazard This section looks at the relationship between individual economic agents and sovereign and institutional interests within the economy in the context of risk management and moral hazard. It also examines the theoretical framework for regulation and policy response. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Indicative Reading List Books:
Articles: None | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Other Resources None | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||