CORPFIN 7042 - Treasury & Financial Risk Management (M)
North Terrace Campus - Semester 1 - 2015
General Course Information
Course Code CORPFIN 7042 Course Treasury & Financial Risk Management (M) Coordinating Unit Business School Term Semester 1 Level Postgraduate Coursework Location/s North Terrace Campus Units 3 Contact Up to 3 hours per week Available for Study Abroad and Exchange Y Prerequisites CORPFIN 7039, CORPFIN 7040, CORPFIN 7005 Course Description The course examines the process and instruments used in treasury management and their application in managing risk. Issues will be examined from both a financial institution and non-financial institution perspective. Topics: the risk management environment: typology of risk management, operational risk, risk management in a non-bank setting; risk management instruments: forwards, futures, options, swaps, alternative investments; management of risk: sensitivity analysis, value at risk, risk measurement and control.
Course Coordinator: Mr Dale BlackmoreLocation: Room 13.51, 10 Pulteney Street
Telephone: 8313 0083
Consultation: Monday 9:00am-10:30am
The full timetable of all activities for this course can be accessed from Course Planner.
Course Learning OutcomesBy the end of this course, students should be able to:
- interpret and discuss the role and relevance of financial risk management
- apply various types of derivative securities to moderate financial risk exposures
- formulate hedging techniques utilising derivative securities in order to achieve appropriate risk management outcomes
- construct risk management tools, including VaR, to monitor financial risk exposures
- adapt existing techniques in the sceuritisation of asset-backed derivatives
- apply skills required to work effectively in a group
University Graduate Attributes
This course will provide students with an opportunity to develop the Graduate Attribute(s) specified below:
University Graduate Attribute Course Learning Outcome(s) Knowledge and understanding of the content and techniques of a chosen discipline at advanced levels that are internationally recognised. 1, 2, 3, 4, 5 The ability to locate, analyse, evaluate and synthesise information from a wide variety of sources in a planned and timely manner. 1, 2, 3, 4, 5 An ability to apply effective, creative and innovative solutions, both independently and cooperatively, to current and future problems. 1, 2, 3, 4, 5 Skills of a high order in interpersonal understanding, teamwork and communication. 6 An awareness of ethical, social and cultural issues within a global context and their importance in the exercise of professional skills and responsibilities. 1
Required ResourcesTreasury and Financial Risk Management 2nd edition, edited by Dale Blackmore. ISBN 9781308079288
Alternatively there is an ebook available
Treasury and Financial Risk Management 2nd edition, edited by Dale Blackmore. ISBN 9781308079295
Either text is suitable, you do not need to purchase both.
- Crouhy M, Galai D, Mark R, 2001, Risk Management, McGraw-Hill Companies Inc., New York
- Culp CL, 2006, Structured Finance and Insurance: The ART of Managing Capital and Risk, John Wiley & Sons Inc., Hoboken
- El-Masry AA, 2006, Derivatives use and risk management practices by UK nonfinancial companies, Managerial Finance, Volume 32, Number 2, pp. 137-159
- Harris T, Galbraith S, Shear N, CARE/CEASA Roundtable on Managing Uncertainty and Risk, Journal of Applied Corporate Finance, Volume 23, Number 2, Spring 2013, pp. 18-33
- Hull, JC, White A, Valuing Credit Default Swaps I: No Counterparty Default Risk, NYU Working Paper, No. FIN-00-021, April 2000
- Pergler M, What’s different in the corporate world and why, McKinsey Working Papers on Risk, Number 40, May 2012
- Sundaram RK, Das SR, 2011, Derivatives: Principles and Practice, McGraw-Hill Companies Inc., New York
Learning & Teaching Activities
Learning & Teaching ModesThis course is run in seminar mode combining the elements of lecture and tutorial in the one class.
To facilitate a full understanding of any topic, students are encouraged to both ask questions and participate in inclass activities. If there is material that any student does not understand, asking of questions at any time during the seminar is encouraged. Concepts from previous courses will serve as foundation for many of the topics under consideration.
There is an expectation that students will engage in additional readings, as well as the required text to gain a full appreciation of all aspects of the course.
The information below is provided as a guide to assist students in engaging appropriately with the course requirements.The University anticipates full-time students (i.e. those taking 12 units per semester) to devote a total of 48 hours per week to their studies. This means that you are likely to need to commit approximately 9 hours for a three-unit course or 13 hours for a four-unit course, of private study outside of your regular attendance in classes.
Students in this course are expected to attend all classes.
Learning Activities Summary
No information currently available.
The University's policy on Assessment for Coursework Programs is based on the following four principles:
- Assessment must encourage and reinforce learning.
- Assessment must enable robust and fair judgements about student performance.
- Assessment practices must be fair and equitable to students and give them the opportunity to demonstrate what they have learned.
- Assessment must maintain academic standards.
Assessment Weighting Related Learning Outcome Class Test 20% 1 Group Assignment 25% All Final exam
3 hours, closed book
55% 1 to 3, 5
Assessment Related RequirementsThe following additional conditions apply:
1. To gain a pass in this course, a mark of at least 45% must be obtained in the final examination, where all topics will be assessed, as well as a total of at least 50% overall. Students who fail to achieve the minimum examination mark will be awarded no more than 48%.
2. Presentation, including legible handwriting and the quality of English expression, is considered to be an integral component of the assessment process. You may lose marks in the examination due to poor handwriting.
3. Students in this course are not permitted to take a dictionary (English or English-Foreign) into the examination.
4. The use of a non-programmable calculator is permitted in this course.
Assessment DetailClass test
To be held during week 5. It will cover material from Weeks 1 to 4. It will be a closed book assessment.
Detailed information on the group assignment will be available on MyUni and will be discussed in class. The assignment, in the form of a business report, will require application of techniques learnt in the course. As a conclusion to the report you will be expected to provide recommended courses of action based on your analysis. A confidential peer assessment form must be completed by each group member and submitted separately to the assignment. Individual member marks may be modified based on feedback contained within the peer assessments for the group. Based on this feedback a group member's mark may be adjusted by a maximum of 10% of the total available mark.
Will be a 3 hour closed book exam and will be held during the examination period.
SubmissionNotes on Assessment
- All set work including assignments and class test must be provided by the due date and must be genuine attempts, to complete the course.
- Presentation, including legible hand-writing and the quality of English expression, is considered an integral part of the assessment process. You may lose marks because of poor hand-writing, poor presentation and/or poor grammar.
- Assessment marks prior to the final exam will be displayed on MyUni. Students are encouraged to check their marks and notify the lecturer-in-charge of any discrepancies.
- Any assignment submitted after the advised due date will incur a penalty of 10% of the total available mark per calendar day.
- Retain a copy of all assignments submitted.
- All group assignments must be attached to a ‘Group Assignment Cover Sheet’, which must be signed and dated by all group members before submission. All team members are expected to contribute approximately equally to a group assignment.
Assignments, which do not have a signed acknowledgement of the University’s policy on plagiarism, may be refused.
Assignment Guidelines including Referencing Details
A copy of the Communication Skills Guide will have been given to you at the beginning of your program. This guide will assist you structure your assignments. The publication also provides guidelines on a range of other important communication skills including writing essays and management reports, making oral presentations etc. In preparing any written piece of assessment for your postgraduate studies it is important to draw on the relevant ‘literature’ to support critical analysis. Also essential is to reference the literature used. Correct referencing is important because it identifies the source of the ideas and arguments that you present, and sometimes the source of the actual words you use, and helps to avoid the problem of plagiarism. (Further information on plagiarism is provided later in this course outline.)
The Harvard system is the preferred style of referencing for this course. Guidelines for the use of this style of referencing can be found in the Communication Skills Guide. Further assistance with referencing is available from the Faculty’s Learning Support Advisors. The contact details are provided in the Communication Skills Guide.
Late Assignment Submission
Students are expected to submit their work by the due date to maintain a fair and equitable system. Extensions will generally only be given for medical or other serious reasons. Other assignments or too much work are considered not to be valid reasons. All requests for extensions must be emailed to the lecturer in charge of the course before the due date. Each request will be assessed on its merits.
Return of Assignments
Every attempt is made to provide feedback to students within two (2) weeks of the due date. Written feedback will be provided for each assignment. If feedback is provided on the submitted assignments, students are responsible for the collection of assignments from the postgraduate hub.
Grades for your performance in this course will be awarded in accordance with the following scheme:
M10 (Coursework Mark Scheme) Grade Mark Description FNS Fail No Submission F 1-49 Fail P 50-64 Pass C 65-74 Credit D 75-84 Distinction HD 85-100 High Distinction CN Continuing NFE No Formal Examination RP Result Pending
Further details of the grades/results can be obtained from Examinations.
Grade Descriptors are available which provide a general guide to the standard of work that is expected at each grade level. More information at Assessment for Coursework Programs.
Final results for this course will be made available through Access Adelaide.
The University places a high priority on approaches to learning and teaching that enhance the student experience. Feedback is sought from students in a variety of ways including on-going engagement with staff, the use of online discussion boards and the use of Student Experience of Learning and Teaching (SELT) surveys as well as GOS surveys and Program reviews.
SELTs are an important source of information to inform individual teaching practice, decisions about teaching duties, and course and program curriculum design. They enable the University to assess how effectively its learning environments and teaching practices facilitate student engagement and learning outcomes. Under the current SELT Policy (http://www.adelaide.edu.au/policies/101/) course SELTs are mandated and must be conducted at the conclusion of each term/semester/trimester for every course offering. Feedback on issues raised through course SELT surveys is made available to enrolled students through various resources (e.g. MyUni). In addition aggregated course SELT data is available.
- Academic Support with Maths
- Academic Support with writing and speaking skills
- Student Life Counselling Support - Personal counselling for issues affecting study
- International Student Support
- AUU Student Care - Advocacy, confidential counselling, welfare support and advice
- Students with a Disability - Alternative academic arrangements
- Reasonable Adjustments to Teaching & Assessment for Students with a Disability Policy
- LinkedIn Learning
Policies & Guidelines
This section contains links to relevant assessment-related policies and guidelines - all university policies.
- Academic Credit Arrangement Policy
- Academic Honesty Policy
- Academic Progress by Coursework Students Policy
- Assessment for Coursework Programs
- Copyright Compliance Policy
- Coursework Academic Programs Policy
- Elder Conservatorium of Music Noise Management Plan
- Intellectual Property Policy
- IT Acceptable Use and Security Policy
- Modified Arrangements for Coursework Assessment
- Student Experience of Learning and Teaching Policy
- Student Grievance Resolution Process
Students are reminded that in order to maintain the academic integrity of all programs and courses, the university has a zero-tolerance approach to students offering money or significant value goods or services to any staff member who is involved in their teaching or assessment. Students offering lecturers or tutors or professional staff anything more than a small token of appreciation is totally unacceptable, in any circumstances. Staff members are obliged to report all such incidents to their supervisor/manager, who will refer them for action under the university's student’s disciplinary procedures.
The University of Adelaide is committed to regular reviews of the courses and programs it offers to students. The University of Adelaide therefore reserves the right to discontinue or vary programs and courses without notice. Please read the important information contained in the disclaimer.