CORPFIN 7042 - Corporate Financial Risk Management (M)

North Terrace Campus - Semester 1 - 2016

The course information on this page is being finalised for 2016. Please check again before classes commence.

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 include how financial risk management contributes to firm value; how to measure and manage market risks, credit risks and operational risks and how to deal with implementation issues of enterprise-wide risk management. The course will cover various methodologies of risk measurement and management including value-at-risk, expected shortfall, model-building approach, default probabilities, economic capital, RAROC and Enterprise Risk Management.

  • General Course Information
    Course Details
    Course Code CORPFIN 7042
    Course Corporate Financial Risk Management (M)
    Coordinating Unit Adelaide 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
    Corequisites CORPFIN 7020
    Assessment Exam/assignments/tests/tutorial work as prescribed at first lecture
    Course Staff

    Course Coordinator: Mr Dale Blackmore

    Location: Room 13.51, 10 Pulteney Street
    Telephone: 8313 0083
    Consultation: Tuesday 1:00pm-2:30pm
    Course Timetable

    The full timetable of all activities for this course can be accessed from Course Planner.

  • Learning Outcomes
    Course Learning Outcomes
    By the end of this course, students should be able to:
    1. interpret and discuss the role and relevance of financial risk management 
    2. apply various types of derivative securities to moderate financial risk exposures
    3. formulate hedging techniques utilising derivative securities in order to achieve appropriate risk management outcomes 
    4. construct risk management tools, including VaR, to monitor financial risk exposures
    5. comprehend the concept of integrated risk management and how to implement it across firms and financial institutions
    University Graduate Attributes

    No information currently available.

  • Learning Resources
    Required Resources
    Treasury 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.
    Recommended Resources
    • 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 Modes
    This 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.

  • Assessment

    The University's policy on Assessment for Coursework Programs is based on the following four principles:

    1. Assessment must encourage and reinforce learning.
    2. Assessment must enable robust and fair judgements about student performance.
    3. Assessment practices must be fair and equitable to students and give them the opportunity to demonstrate what they have learned.
    4. Assessment must maintain academic standards.

    Assessment Summary
    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 Requirements
    The 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 Detail
    Class 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.

    Final examination
    Will be a 3 hour closed book exam and will be held during the examination period.
    Notes on Assessment
    1. All set work including assignments and class test must be provided by the due date and must be genuine attempts, to complete the course.
    2. 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.
    3. 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.
    4. Any assignment submitted after the advised due date will incur a penalty of 10% of the total available mark per calendar day.
    Presentation of Assignments
    • 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. Feedback will be provided online for each assignment.
    Course Grading

    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.

  • Student Feedback

    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 ( 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.

  • Student Support
  • Policies & Guidelines
  • Fraud Awareness

    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.