Students
AFIN328 – Financial Risk Management
2016 – S2 Day
General Information
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| Unit convenor and teaching staff |
Unit convenor and teaching staff
Angela Chow
David Pitt
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| Credit points |
Credit points
3
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| Prerequisites |
Prerequisites
6cp at 200 level including (AFIN252 or (AFIN250 and (AFIN270 or STAT272)))
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| Corequisites |
Corequisites
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| Co-badged status |
Co-badged status
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| Unit description |
Unit description
The aim of this unit is to prepare students for analytical duties a graduate is expected to carry out in a financial institution, or for research for a higher degree. On completing the unit, successful students also attain practical knowledge of how to apply and evaluate the quantitative methods covered in the unit in analysing and managing portfolios as well as the risk arising from various financial investments. In particular, students are expected to be able to: examine and find optimal investments strategies with respect to risk and return; attain an excellent knowledge of the role and characteristics of international financial markets and institutions; understand the pricing of various financial products and how they can be used for hedging; evaluate econometric models for financial variables; and acquire an extensive knowledge on the major approaches to managing market, credit and operational risks. By undertaking this unit, students have an opportunity to consolidate and extend the knowledge they attained in first and second year finance units. Students are introduced to advanced techniques in financial markets and risk management practices with plenty of opportunities to apply them to real-world data through several tutorial tasks and a written assignment.
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Important Academic Dates
Information about important academic dates including deadlines for withdrawing from units are available at https://www.mq.edu.au/study/calendar-of-dates
Learning Outcomes
On successful completion of this unit, you will be able to:
- Develop coherent theoretical and technical knowledge in the discipline and practice of financial risk management
- Acquire well-developed cognitive, technical and communication skills to select and apply methods and technologies to analyse, generate and transmit solutions to risk problems in financial institutions
- Apply knowledge and skills to demonstrate well-developed judgement of knowledge and responsibility to provide specialist advice in situations of financial risk
- Encourage peer learning, peer support and collaborative work in implementing financial risk principles
General Assessment Information
- To provide early feedback, you are to complete a self-assessment online quiz to be released in Week 3. Use this quiz as an indicator of whether you are progressing satisfactorily in the unit. If you are having difficulties, please see the Unit Convenor and consider withdrawing before the census date. Your score on the quiz will not count towards your grade.
- It is the responsibility of students to view their marks for each within session assessment on iLearn within 20 working days of posting. If there are any discrepancies, students must contact the unit convenor immediately. Failure to do so will mean that queries received after the release of final results regarding assessment marks (not including the final exam mark) will not be addressed.
- Assessment criteria for all assessment tasks will be provided on the unit iLearn site.
Assessment Tasks
| Name | Weighting | Hurdle | Due |
|---|---|---|---|
| Class Test | 20% | No | Week 7 |
| Assignment | 20% | No | 11 October 2016 |
| Final Examination | 60% | No | University exam period |
Class Test
Due: Week 7
Weighting: 20%
- Students will sit an invigilated in-class test. Further details will be provided on the unit iLearn website
- No extensions will be granted. Students who do not sit the test will be awarded a mark of 0 for the task, except for cases in which an application for special consideration is made and approved.
On successful completion you will be able to:
- Develop coherent theoretical and technical knowledge in the discipline and practice of financial risk management
- Acquire well-developed cognitive, technical and communication skills to select and apply methods and technologies to analyse, generate and transmit solutions to risk problems in financial institutions
- Apply knowledge and skills to demonstrate well-developed judgement of knowledge and responsibility to provide specialist advice in situations of financial risk
Assignment
Due: 11 October 2016
Weighting: 20%
- Students complete a major assignment on a topical issue in financial risk management chosen by the convenor. Further details will be provided on the unit iLearn website.
- The project is a group task with 50% of the marks allocated to individual performance.
- The project must be submitted via the unit iLearn website.
- No extensions will be granted. There will be a deduction of 10% of the total available marks made from the total awarded mark for each 24 hour period or part thereof that the submission is late (for example, 25 hours late in submission - 20% penalty). This penalty does not apply for cases in which an application for disruption of studies is made and approved. No submission will be accepted after solutions have been posted.
On successful completion you will be able to:
- Develop coherent theoretical and technical knowledge in the discipline and practice of financial risk management
- Acquire well-developed cognitive, technical and communication skills to select and apply methods and technologies to analyse, generate and transmit solutions to risk problems in financial institutions
- Apply knowledge and skills to demonstrate well-developed judgement of knowledge and responsibility to provide specialist advice in situations of financial risk
- Encourage peer learning, peer support and collaborative work in implementing financial risk principles
Final Examination
Due: University exam period
Weighting: 60%
- The Final Exam lasts 2 hours with 10 minutes reading time. The exam will cover all topics taught across the entire unit. Further details will be provided on the unit iLearn website.
- You are permitted ONE A4 page of paper containing reference material printed on both sides. The material may be handwritten or typed. The page will not be returned to you at the end of the final examination.
- Non-programmable calculators are allowed, provided that they are not capable of storing text.
On successful completion you will be able to:
- Develop coherent theoretical and technical knowledge in the discipline and practice of financial risk management
- Acquire well-developed cognitive, technical and communication skills to select and apply methods and technologies to analyse, generate and transmit solutions to risk problems in financial institutions
- Apply knowledge and skills to demonstrate well-developed judgement of knowledge and responsibility to provide specialist advice in situations of financial risk
Delivery and Resources
Classes
Classes in this unit are composed of a two-hour lecture, and a one-hour tutorial. Lectures commence in Week 1 and tutorials commence in Week 2. Tutorials lag the lectures. For example, the tutorial in Week 2 will cover the questions assigned from the lecture in Week 1.
Timetables
All students are required to attend their timetabled classes. The timetable for classes can be found on the University web site http://www.timetables.mq.edu.au/
Required Text
Hull, J. (2015) Risk Management and Financial Institutions, 4th Edition, Wiley.
This book can be purchased from the Macquarie University Co-op Bookshop. We may supplement the text with readings from journals and other textbooks as required.
Technology Used and Required
- Internet access
- Access to iLearn
- Non-programmable financial or scientific calculator
- Computer with Microsoft Excel
- DerivaGem software available from textbook author's web site.
Unit Schedule
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Policies and Procedures
Macquarie University policies and procedures are accessible from Policy Central. Students should be aware of the following policies in particular with regard to Learning and Teaching:
Academic Honesty Policy http://mq.edu.au/policy/docs/academic_honesty/policy.html
New Assessment Policy in effect from Session 2 2016 http://mq.edu.au/policy/docs/assessment/policy_2016.html. For more information visit http://students.mq.edu.au/events/2016/07/19/new_assessment_policy_in_place_from_session_2/
Assessment Policy prior to Session 2 2016 http://mq.edu.au/policy/docs/assessment/policy.html
Grading Policy prior to Session 2 2016 http://mq.edu.au/policy/docs/grading/policy.html
Grade Appeal Policy http://mq.edu.au/policy/docs/gradeappeal/policy.html
Complaint Management Procedure for Students and Members of the Public http://www.mq.edu.au/policy/docs/complaint_management/procedure.html
Disruption to Studies Policy http://www.mq.edu.au/policy/docs/disruption_studies/policy.html The Disruption to Studies Policy is effective from March 3 2014 and replaces the Special Consideration Policy.
In addition, a number of other policies can be found in the Learning and Teaching Category of Policy Central.
Student Code of Conduct
Macquarie University students have a responsibility to be familiar with the Student Code of Conduct: https://students.mq.edu.au/support/student_conduct/
Results
Results shown in iLearn, or released directly by your Unit Convenor, are not confirmed as they are subject to final approval by the University. Once approved, final results will be sent to your student email address and will be made available in eStudent. For more information visit ask.mq.edu.au.
Supplementary exams
Information regarding supplementary exams, including dates, is available at: http://www.businessandeconomics.mq.edu.au/current_students/undergraduate/how_do_i/special_consideration
Student Support
Macquarie University provides a range of support services for students. For details, visit http://students.mq.edu.au/support/
Learning Skills
Learning Skills (mq.edu.au/learningskills) provides academic writing resources and study strategies to improve your marks and take control of your study.
Student Services and Support
Students with a disability are encouraged to contact the Disability Service who can provide appropriate help with any issues that arise during their studies.
Student Enquiries
For all student enquiries, visit Student Connect at ask.mq.edu.au
IT Help
For help with University computer systems and technology, visit http://www.mq.edu.au/about_us/offices_and_units/information_technology/help/.
When using the University's IT, you must adhere to the Acceptable Use of IT Resources Policy. The policy applies to all who connect to the MQ network including students.
Graduate Capabilities
Capable of Professional and Personal Judgement and Initiative
We want our graduates to have emotional intelligence and sound interpersonal skills and to demonstrate discernment and common sense in their professional and personal judgement. They will exercise initiative as needed. They will be capable of risk assessment, and be able to handle ambiguity and complexity, enabling them to be adaptable in diverse and changing environments.
This graduate capability is supported by:
Learning outcomes
- Develop coherent theoretical and technical knowledge in the discipline and practice of financial risk management
- Acquire well-developed cognitive, technical and communication skills to select and apply methods and technologies to analyse, generate and transmit solutions to risk problems in financial institutions
- Apply knowledge and skills to demonstrate well-developed judgement of knowledge and responsibility to provide specialist advice in situations of financial risk
- Encourage peer learning, peer support and collaborative work in implementing financial risk principles
Assessment tasks
- Class Test
- Assignment
- Final Examination
Discipline Specific Knowledge and Skills
Our graduates will take with them the intellectual development, depth and breadth of knowledge, scholarly understanding, and specific subject content in their chosen fields to make them competent and confident in their subject or profession. They will be able to demonstrate, where relevant, professional technical competence and meet professional standards. They will be able to articulate the structure of knowledge of their discipline, be able to adapt discipline-specific knowledge to novel situations, and be able to contribute from their discipline to inter-disciplinary solutions to problems.
This graduate capability is supported by:
Learning outcomes
- Develop coherent theoretical and technical knowledge in the discipline and practice of financial risk management
- Acquire well-developed cognitive, technical and communication skills to select and apply methods and technologies to analyse, generate and transmit solutions to risk problems in financial institutions
- Apply knowledge and skills to demonstrate well-developed judgement of knowledge and responsibility to provide specialist advice in situations of financial risk
- Encourage peer learning, peer support and collaborative work in implementing financial risk principles
Assessment tasks
- Class Test
- Assignment
- Final Examination
Critical, Analytical and Integrative Thinking
We want our graduates to be capable of reasoning, questioning and analysing, and to integrate and synthesise learning and knowledge from a range of sources and environments; to be able to critique constraints, assumptions and limitations; to be able to think independently and systemically in relation to scholarly activity, in the workplace, and in the world. We want them to have a level of scientific and information technology literacy.
This graduate capability is supported by:
Learning outcomes
- Develop coherent theoretical and technical knowledge in the discipline and practice of financial risk management
- Acquire well-developed cognitive, technical and communication skills to select and apply methods and technologies to analyse, generate and transmit solutions to risk problems in financial institutions
- Apply knowledge and skills to demonstrate well-developed judgement of knowledge and responsibility to provide specialist advice in situations of financial risk
- Encourage peer learning, peer support and collaborative work in implementing financial risk principles
Assessment tasks
- Class Test
- Assignment
- Final Examination
Problem Solving and Research Capability
Our graduates should be capable of researching; of analysing, and interpreting and assessing data and information in various forms; of drawing connections across fields of knowledge; and they should be able to relate their knowledge to complex situations at work or in the world, in order to diagnose and solve problems. We want them to have the confidence to take the initiative in doing so, within an awareness of their own limitations.
This graduate capability is supported by:
Learning outcomes
- Develop coherent theoretical and technical knowledge in the discipline and practice of financial risk management
- Acquire well-developed cognitive, technical and communication skills to select and apply methods and technologies to analyse, generate and transmit solutions to risk problems in financial institutions
- Apply knowledge and skills to demonstrate well-developed judgement of knowledge and responsibility to provide specialist advice in situations of financial risk
- Encourage peer learning, peer support and collaborative work in implementing financial risk principles
Assessment tasks
- Class Test
- Assignment
- Final Examination