Earn a world-class academic degree accredited by professional bodies such as CMI and CIMA and join the next generation of global business leaders.
Course
— Academic Direction:
Queen Mary 91app,
UCL
Risk management and decision-making
Module information>
The module takes an applied perspective, concentrating on decision-making in risky environments, which is of paramount importance to the finance industry.
Apart from identification of risk sources, the module offers a detailed analysis of tools and processes designed to manage these risks which are used by the financial industry. The latter is highly sought after in the financial industry.
Topics covered
- The Capital Asset Pricing Model
- Value at Risk
- Volatility, Correlations and Copulas
- Regulatory Risk
- Market Risk
- Credit Risk
- Scenario Analysis, Stress Testing and Operational Risk
- Liquidity Risk
- Model Risk
- ABSs, CDOs and, the Credit Crunch of 2007.
Learning outcomes
If you complete the module successfully, you should be able to:
- Describe and critically assess the processes through which companies make decisions in risky environments
- Explain how financial instruments can be used to manage portfolio risk
- Illustrate the following types of risk: credit, market, operational, reputational and regulatory
- Compare risk databases and their management
- Reason critically with respect to alternative risk management strategies
- Assess best strategies according to an available set of information and adapt appropriate strategies once a set of information changes
- Create the most suitable set of information for the decision-making process
- Measure the following types of risk: credit, market, operational, reputational and regulatory
- Professional financial tool skills and case study interpretation skills to support decisions
- Work both independently and in teams to create and manage financial strategies
- Present highly technical financial material to non-practitioners simply and clearly
- Utilise real-time data to estimate the different sources of risk
- Utilise financial tools and case studies to support strategic decisions
- Synthesise and use information and materials from a variety of different sources to support an argument
- Apply research skills into risk management problems and the application of these in business decision-making.
Assessment
This module is assessed by:
Coursework (50% weighting):
- There is one item of coursework for this module which contributes to the final assessment mark for this module:
- Coursework: a written essay of a maximum of 2,000 or 2,500 words (deadline – weeks 9-12) The coursework is designed to check student progress, extend and reinforce concepts covered and also test individual performance.
Examination (50% weighting):
- The final piece of assessment will be an unseen written examination of 2 hours’ duration.
