Course overview
This course will introduce the student to alternative concepts, measures and approaches to the evaluation of financial risks present in the corporate, financial and insurance sectors. To provide the student with the opportunity to develop a depth of understanding regarding the alternative strategies and instruments used in the management of these financial risks. Risks faced by the financial institution: market risk, credit risk, operational risk, risks in the regulatory environment. Risk management frameworks, policies and implementation systems, in the financial and non-financial corporate sectors. Measuring financial risks and the implications of model risk for their measurement. Portfolio analysis and the measurement of risk. Measuring risks in detail: market risk and the VaR and CFaR approaches; credit risk, credit ratings and contingent claims; and actuarial approaches in insurance. The management of risks: banks, non-bank financial institutions and non-financial corporations.
Course learning outcomes
- Describe in depth the risks faced by different types of financial and non-financial organisations.
- Explain the alternative approaches available for the measurement of market, credit and operational risk according to the industry in which the organisation is located.
- Distinguish between insurable and non-insurable forms of risk and analyse the impact of this distinction for organisation-level risk management.
- Critically evaluate alternative risk management strategies and their application.
- Discuss the implications of convergence between the finance and insurance markets.
- Demonstrate UniSA Business Enterprise Skills in the context of the Finance discipline: i) Problem Solving (advanced level); ii) Written Communication (advanced level); and iii) International Perspective (intermediate level).