CORPFIN 7042 - Corporate Financial Risk Management (M)
North Terrace Campus - Semester 2 - 2019
General Course Information
Course Code CORPFIN 7042 Course Corporate Financial Risk Management (M) Coordinating Unit Business School Term Semester 2 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 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 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, default probabilities, economic capital, RAROC and Enterprise Risk Management.
Course Coordinator: Dr Thu Phuong PhamLocation: Room 12.36, 10 Pulteney Street
The full timetable of all activities for this course can be accessed from Course Planner.
Course Learning OutcomesOn successful completion of this course, students will 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
- comprehend the concept of integrated risk management and how to implement it across firms and financial institutions
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) Deep discipline knowledge
- informed and infused by cutting edge research, scaffolded throughout their program of studies
- acquired from personal interaction with research active educators, from year 1
- accredited or validated against national or international standards (for relevant programs)
1, 2, 3, 4 and 5 Critical thinking and problem solving
- steeped in research methods and rigor
- based on empirical evidence and the scientific approach to knowledge development
- demonstrated through appropriate and relevant assessment
1, 2, 3, 4 and 5 Teamwork and communication skills
- developed from, with, and via the SGDE
- honed through assessment and practice throughout the program of studies
- encouraged and valued in all aspects of learning
1, 2, 3, 4 and 5 Career and leadership readiness
- technology savvy
- professional and, where relevant, fully accredited
- forward thinking and well informed
- tested and validated by work based experiences
1, 2, 3, 4 and 5 Intercultural and ethical competency
- adept at operating in other cultures
- comfortable with different nationalities and social contexts
- able to determine and contribute to desirable social outcomes
- demonstrated by study abroad or with an understanding of indigenous knowledges
1, 2, 3, 4 and 5 Self-awareness and emotional intelligence
- a capacity for self-reflection and a willingness to engage in self-appraisal
- open to objective and constructive feedback from supervisors and peers
- able to negotiate difficult social situations, defuse conflict and engage positively in purposeful debate
1, 2, 3, 4 and 5
Required ResourcesThe core material that will be covered within the course is available on MyUni. However, it is also a requirement that you obtain a copy of the following text and that you supplement your studies of the core material with the text:
Risk Management and Financial Institutions, 5th Edition, Hull
Hardcover ISBN : 9781119448112
You must have access to this resource prior to the start of the semester.
The required resource is available in multiple formats and options:
- E-Texts and printed texts can be purchased at <https://www.wiley.com/en-au/Risk+Management+and+Financial+Institutions%2C+5th+Edition-p-x001080017>
- Printed texts can also be purchased at your campus bookstore or via online retailers
Recommended Resources1) Financial Risk Manager Handbook + Test Bank [electronic resource]: FRM(r) Part I/Part II, Wiley, 2010, ISBN: 1-283-20378-2
2) Stulz, René M. Risk Management and Derivatives, 1st Edition. Cengage Learning. 2003. ISBN-13: 9780538861014 / ISBN-10: 0538861010
3) Crouhy, Michel; Dan Galai and Robert Mark. The Essentials of Risk Management, 2nd Edition. McGrawHill 2014.
4) Crouhy, Michel; Dan Galai and Robert Mark. Risk Management, 1st Edition. McGrawHill 2000.
5) Brealey, Richard; Stewart Myers, Franklin Allen. Principles of Corporate Finance. 11th Edition, McGrawHill 2013
6) John C. Hull. Options, Futures and Other Derivatives, 9th Edition, Pearson 2015.
7) Journal of Applied Corporate Finance, Various issues.
8) High quality finance journals covering risk management.
Learning & Teaching Activities
Learning & Teaching Modes1 x 3 hour seminar per week, beginning from week 1.
Material including presentation slides, practice questions and case studies (if any) will be available on MyUni prior to each seminar.
These on their own are not an adequate substitute for active participation and taking your own notes in the seminar. It is recommended that you take a copy of the presentation slides with you to class and use these as a basis for your own note-taking. Developing seminar notes is your own responsibility in this course. If you miss a seminar, you should ask a friend or acquaintance for notes.
There is an expectation that students will engage in additional readings, as well as the required text prior to the seminar 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 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.
No information currently available.
Assessment DetailOnline tests
Online Test 1: Multiple choice questions, and/or analytical problems based on all materials covered in lectures and tutorials from Week 1 to Week 3 inclusive.
Online Test 2: Multiple choice questions, and/or analytical problems based on all materials covered in lectures and tutorials from Week 3 to Week 6 inclusive.
Online Test 3: Multiple choice questions, and/or analytical problems based on all materials covered in lectures and tutorials from Week 7 to Week 11 inclusive.
Will be a 3 hour closed book exam and will be held during the examination period
No information currently available.
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.
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