ACC40690 Risk Management Systems

Upon completion of this module participants should be able to

• Evaluate types of risk facing an organization and critically discuss ways of identifying, measuring and assessing the types of risk being faced and recommend appropriate responses;
• Explore the use of fundamental types of financial risk management instruments by firms and financial institutions and to critically discuss their purposes and relative importance;
• Evaluate risks in investment projects and changing capital structures in firms and recommend solutions for the financial risk of international operations.
• Apply a practical approach to implementing these instruments and models for valuation, risk management and financial engineering.

This module focuses on two core areas – what risks does the organisation face and how can those risks be managed and controlled? First, the module looks at the more general management strategies of risk identification and management, involving establishing and monitoring appropriate systems of internal control. Second, the module focuses on financial risks. In particular, the module analyses the following:

• Operation and features of the instruments for managing interest rate risk;
• Operation and features of the instruments for managing currency risk;
• Theory and forecasting of exchange rates;
• Yield Curve Construction and Bond Mathematics;
• Principles of valuation of financial instruments for management and financial reporting purposes (IAS 39) and Basle III requirements.

Not applicable to this module.

• Group/class feedback, post-assessment

Not yet recorded.