Registry

Module Specifications

Archived Version 2008 - 2009

Module Title	Risk Management
Module Code	EF309
School	DCUBS
Online Module Resources
Level	3	Credit Rating	5
Pre-requisite	None
Co-requisite	None

Module Aims

To familiarise students with the techniques of managing financial risk in the modern business environment

Learning Outcomes

Students will examine the riskiness of financial positions from a range of perspectives and will evaluate the techniques and strategies available to manage this risk before making recommendations. The course emphasises the need for the individual to brief his/her superiors on the most appropriate approach to risk management and will require concise and lucid report writing. Coursework will require students to use Datastream, Reuters and other information dealing packages to facilitate evaluation of risk and risk management strategies.

Indicative Time Allowances
	Hours
Lectures	24
Tutorials	8
Laboratories	0
Seminars	0
Independent Learning Time	43

Total	75
Placements
Assignments

NOTE

Assume that a 5 credit module load represents approximately 75 hours' work, which includes all teaching, in-course assignments, laboratory work or other specialised training and an estimated private learning time associated with the module.

Indicative Syllabus

Introduction: The significance of financial risk, product innovation and financial risk, importance of risk management in corporate strategy, key elements of successful risk management.Interest Rate Risk: Sources and Product Set: Fixed income securities and markets, term structure of interest rates, forwards, futures, swaps and options.Financial Risk Management Strategies: Fixed Income hedging, duration, convexity and bond portfolio immunisation. Basis risk in futures, hedging with options.Alternative Approaches to Interest Rate Risk Management: Asset and liability management, and usage of caps, floors and collars.Managing Foreign Exchange Risk: Exposure and risk, internal and external hedging, futures, forwards and options.

Assessment
Continuous Assessment	50%	Examination Weight	50%

Indicative Reading List

Campbell, T.S., Kracaw, W., Financial Risk Management: Fixed Income and Foreign Exchange. Harper Collins, 1993.Holland, J., International Financial Management (2nd ed). Blackwell Publishers, 1993.

Programme or List of Programmes

BA in Accounting & Finance

BQF

BSc in Quantitative Finance

Bachelor of Business Studies

BSI

Business Studies ( with INTRA )

BSSA

Study Abroad (DCU Business School)

BSSAO

Study Abroad (DCU Business School)

EBF