CORPFIN 7048 - Applied Financial Institutions Management (M)

North Terrace Campus - Semester 1 - 2021

This course provides an introduction to the management of financial institutions and intermediaries. The course focuses on the importance of ensuring good organizational functioning within institutions to manage the varied types of risk that they may be exposed to. Students are first introduced to the construct of the firm as a legal entity, and how financial institutions have specific requirements that relate to this. The course then examines the principles of the theory and practice of effective organizational structure and policies for successful risk management and how to manage the inter-relationships that are inherent between departments. Students are also introduced to international standards of banking practice and how they impact the functioning of the institutions plus how to define and measure various types of risk these institutions can be exposed to.

  • General Course Information
    Course Details
    Course Code CORPFIN 7048
    Course Applied Financial Institutions Management (M)
    Coordinating Unit Finance and Banking
    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 7005
    Assumed Knowledge CORPFIN 7033/COMMERCE 7033
    Assessment Exam/assignments/tests/presentation/tutorial work as prescribed at first lecture & presentation
    Course Staff

    Course Coordinator: Dr Erin Derina

    Dr. Ratna Derina (Erin)  
    Location: Room 12.37 , 10 Pulteney Street
    Telephone: :8313 7137
    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 will:
    1. Understand the theories of financial intermediaries and the important roles of the financial institutions in the global economy
    2. Critically evaluate and analyse performance of financial institutions
    3. Understand the main types of risk financial institutions are exposed to, which includes interest rate risk, credit risk, market risk, off balance sheet risk, liquidity risk, foreign exchange risk and operational risk, and how they are interconnected
    4. Implement different methods to measure the main types of financial institution risk
    5. Implement methods in managing the risk including asset and liability management, capital management and securitisation
    6. Understand the application of the international standards of banking practice
    7. Engage in informed discussion of some of the contemporary issues in an international context, affecting financial institutions and their stakeholders
    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)
    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
    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
    Career and leadership readiness
    • technology savvy
    • professional and, where relevant, fully accredited
    • forward thinking and well informed
    • tested and validated by work based experiences
    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
    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
  • Learning Resources
    Required Resources
    Lange, H., A. Saunders, M.M. Cornett (LSC) , “Financial Institutions Management” , Fourth Edition, McGraw Hill/Irwin ( 2015)
    Recommended Resources
    Additional Readings :

    Topic 1 :Financial Services Industry
    1. Lewllyn D T, “Banking in the 21st century : The transformation of an industry “ in Readings in Financial Institution management : Modern Technique for a global industry edited by Tom Valentine and Guy Ford, Allen &Unwin (1999)
    2. Australian Prudential Regulatory Authority, “Overview of the Australian Deposit-taking Sector”, APRA Insight (1), 2006.

    Topic 2 : Performance Analysis and Measuring Risk Exposures
    Saunders, J. M.M. Cornett appendix 7A in “Financial Institutions Management, 6th edition McGraw Hill/Irwin (2008)

    Topic 10: Managing Risk : Liability and liquidity Management
    Lange, H., A. Saunders,J.A. Anderson, D. Thomson, M.M. Cornett (LSATC) , chapter 16 (pages 413-417) in “Financial Institutions Management” , Second Edition, McGraw Hill/Irwin ( 2007)
  • Learning & Teaching Activities
    Learning & Teaching Modes
    Lectures are supported by problem solving workshops developing materials covered in lectures.

    The information below is provided as a guide to assist students in engaging appropriately with the course requirements.

    The University expects 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 students are expected 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 classes. Students in this course are expected to attend all lectures throughout the semester.
    Learning Activities Summary








    Introduction and overview of Financial Services Industry




    Overview of Financial Institutions

    LSC : Ch 1




    Depository Institutions

    LSATC Ch 2, Lewllyn




    Other Financial Institutions

    LSTAC Ch3




    Financial Statements and Risks




    Financial Statement and Analysis

     Saunders Appendix 7A, LSC app 2A




    Concepts of Risk Management

    LSC, CH4




    Risk Management





    Managing Interest rate risk (Maturity Model)

    LSC app 5a



    Managing Interest rate risk (Duration & Repricing Models)

    LSC : Ch 6 & 5

    4 &5


    Managing Credit Risk

    LSC : Ch 10 &11



    Managing Off-balance sheet Risks

    LSC : Ch 16



    Test I

    Topics 1 to 3



    Managing Foreign Exchange Risk

    LSC : Ch 13


    Managing Market Risk

     LSC : Ch9



    Managing Liquidity Risk

    LSC ; Ch14



    Managing Liability and Liquidity 

    LSC: Ch15, LSTAC 2nd ed ch 16, pg 413-417


    Test II 

     Topics 4 to 7



    Regulations of  Capital Adequacy and Management 

    LSC: Ch18



    Loan Sales and Securitisation

    LSC: Ch8





  • 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
    The assessment components are as follows:

    Assessment Task Weighting Learning Outcome
    Test I  20% 1-7
    Group Assignment 20% 1-7
    Final Exam 60% 1-7
    Total 100%

    Specific due dates will be published on MyUni.

    Bonus mark for early submission of the group assignment: 2.5 marks
    Assessment Detail
    The assessment consists of test I,  group assignment  and final examination.

        1. Test  I will be held  on Wednesday, April 18th (week 6),  will cover topics 1 to 3. Student who does not sit the mid semester test and does not provide evidence of adequate reason (e.g. illness or unavoidable work commitment) will receive mark of zero for the test which will not be redeemable (i.e. test will still count for 20 percent of final mark).Student who misses the mid semester test and provides evidence of adequate reason will have weighting on the group assignment increased by 20 percentage points.
          • Group assignment is to be done in a group of 2 to 4 people.  All team members are expected to contribute approximately equally to the group assignment.  The assignment is due by 4pm on Friday, June 1st.
          • A late assignment (without prior arrangement) will be penalised by a 1 mark reduction for each day that it is late.

          Early submission bonus mark : A bonus of 2.5 marks is applied for early submission of the assignment (by 4pm on Tuesday, May 29th). If the assignment is  submitted later than this time, then the bonus is not applied. 
          • Final exam is a closed book exam, covers all topics. No minimum mark for the final exam is required to pass the course.
        Group assignment reports should be submitted  electronically by 4pm on Friday, June 1st by the group leader. The link for the Turnitin Assignment tool have been created for you under the Assignment page entitled “Applied FIM Group Assignment Submission”in the MyUni Canvas site.
        You can upload your assignment directly by following the prompts. For guidance on how to submit your assignment electronically via MyUni Canvas, go to and click on the “Submit an Assignment” tutorial. You will need to upload a Word  or pdf version of your assignment to Turnitin. A late assignment will be penalised by a 1 mark reduction for each day that it is late.

        Presentation of Assignments

        •• Students must retain a copy of all assignments submitted.
        • When submitting your assignment, please attach a ‘ Group Assignment Cover Sheet’, which must be signed and dated by all group members before submission. Lecturers can refuse to accept assignments, which do not have a signed acknowledgement of the University’s policy on plagiarism.

        Assignment Guidelines including Referencing Details
        A copy of the Postgraduate Programs: Communication Skills Guide will have been given to you at the beginning of your program. This guide will assist you structure your assignments. A copy of the guide can also be downloaded from This 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 undergraduate 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 widely used in the Business School. 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 on page 6 of 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. 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.
        A late assignment (without prior arrangement) will be penalised by a 1 mark reduction for each day that it is late. 

        Return of Assignments
        Lecturers aim to mark and return assignments to students within two (2) weeks of the due date with written feedback. Students are responsible for collecting their marked assignments from either their tutorials or lectures. If assignments aren’t collected after two (2) weeks, the assignments will be available at the Student Hub for two (2) weeks. 
        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.

      1. 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.

      2. Student Support
      3. Policies & Guidelines
      4. 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.

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