Students

AFIN3028 – Financial Risk Management

2020 – Session 1, Weekday attendance, North Ryde

Coronavirus (COVID-19) Update

Due to the Coronavirus (COVID-19) pandemic, any references to assessment tasks and on-campus delivery may no longer be up-to-date on this page.

Students should consult iLearn for revised unit information.

Find out more about the Coronavirus (COVID-19) and potential impacts on staff and students

General Information

Download as PDF
Unit convenor and teaching staff Unit convenor and teaching staff Unit Convenor
Lei Shi
Contact via 8478
4ER517
Refer to ilearn
Shane Magee
Credit points Credit points
10
Prerequisites Prerequisites
(AFIN252 or AFIN2052 or AFIN250 or AFIN2050) and (AFIN270 or AFIN2070 or STAT272 or STAT2372)
Corequisites Corequisites
Co-badged status Co-badged status
Unit description Unit description

This unit examines optimal investments strategies with respect to risk and return; the role and characteristics of international financial markets and institutions; the pricing of various financial products and how they can be used for hedging. It builds econometric models based on financial variables and how these are utilised in managing market, credit and operational risks. Students are also introduced to advanced techniques in financial markets and risk management practices.

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:

  • ULO1: Illustrate coherent theoretical and technical knowledge in the discipline and practice of financial risk management.
  • ULO2: Analyse, generate and transmit solutions to risk problems in financial institutions.
  • ULO3: Formulate well-developed judgement of knowledge and responsibility to provide specialist advice in situations of financial risk.
  • ULO4: Evaluate econometric models for financial variables.

Assessment Tasks

Coronavirus (COVID-19) Update

Assessment details are no longer provided here as a result of changes due to the Coronavirus (COVID-19) pandemic.

Students should consult iLearn for revised unit information.

Find out more about the Coronavirus (COVID-19) and potential impacts on staff and students

General Assessment Information

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.

Delivery and Resources

Coronavirus (COVID-19) Update

Any references to on-campus delivery below may no longer be relevant due to COVID-19.

Please check here for updated delivery information: https://ask.mq.edu.au/account/pub/display/unit_status

Required Text: Hull, J. (2018) Risk management and Financial Institutions, 5th Edition, Wiley
Technology Used and Required:
  • Internet access
  • Access to iLearn
  • Non-programmable financial or scientific calculator
  • Computer with Microsoft Excel
  • RMFI software available from textbook author's website
Delivery Format and Other Details:

Classes

  • Classes in this unit are composed of a two-hour lecture, and 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 or classes can be found on the University website https://timetables.mq.edu.au/2020/

 

Unit Schedule

Coronavirus (COVID-19) Update

The unit schedule/topics and any references to on-campus delivery below may no longer be relevant due to COVID-19. Please consult iLearn for latest details, and check here for updated delivery information: https://ask.mq.edu.au/account/pub/display/unit_status

Week Textbook chapters Topic
1 1-6 Introduction
2 7-9 Managing Market and Interest Rate Risk
3 10, 11 Volatility, Correlation and Copulas
4 12, 13 Value-at-Risk, Expected Shortfall and Historical Simulation
5 13, 14 Model-Building Approach to Value-at-Risk and Expected Shortfall
6 15-18 Regulation
7 17, 19 Credit Risk
    Mid session break
8   Class Test
9 20, 21 CVA, DVA and Credit VaR
10 22, 23 Scenario Analysis, Stress Testing and Operational Risk
11 24, 25 Liquidity and Model Risk
12 26-29 Economic Capital, Enterprise Risk Management, Financial Innovation and Risk Management Mistakes to Avoid
13   Revision

 

Policies and Procedures

Macquarie University policies and procedures are accessible from Policy Central (https://staff.mq.edu.au/work/strategy-planning-and-governance/university-policies-and-procedures/policy-central). Students should be aware of the following policies in particular with regard to Learning and Teaching:

Students seeking more policy resources can visit the Student Policy Gateway (https://students.mq.edu.au/support/study/student-policy-gateway). It is your one-stop-shop for the key policies you need to know about throughout your undergraduate student journey.

If you would like to see all the policies relevant to Learning and Teaching visit Policy Central (https://staff.mq.edu.au/work/strategy-planning-and-governance/university-policies-and-procedures/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/study/getting-started/student-conduct​

Results

Results published on platform other than eStudent, (eg. iLearn, Coursera etc.) 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 or if you are a Global MBA student contact globalmba.support@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/disruption_to_studies

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 help you improve your marks and take control of your study.

The Library provides online and face to face support to help you find and use relevant information resources. 

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

If you are a Global MBA student contact globalmba.support@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.