Risk Management in Banking - BFIPORB

Risk Management in Banking                                              BFIP0RB

Semester

Spring

Level

11

Credit value

20

Module Co-ordinator

TBA

Contact hours

32 lectures plus 8 seminars

Assessment

40% for assessment

60% examination (resit available)

 Objectives

  • To explore the sources of risk facing banks
  • To critically analyse the key risk management concepts in banking
  • To introduce and evaluate the methods that banks can adopt to identify, evaluate and control these risks, including asset-liability management, value at risk, and credit scoring and credit portfolio models.
  • To evaluate the central credit risk function of a bank and its role within the risk management framework
  • To assess credit risk and apply credit risk practices
  • To assess and manage operational risks
  • To critically review the international and UK regulatory risk environment
  • To examine the impact of the recent global banking crisis and its consequences in the industry

 Learning outcomes

Knowledge and understanding of:

  • Modern techniques of financial risk management used by banks and financial institutions
  • How to identify, classify, measure, and manage different types of financial business risks in order to create economic value
  • The foundations of conventional economic theory on utility functions and risk aversion and the evolution of the models for measuring risk
  • The analysis of the nature of banks and financial institutions’ risk exposures, instruments and strategies to management those risks which include interest rate risk, market risk, credit risk, operational risk and liquidity risk
  • The role of the regulator in controlling such risks through mechanisms such as deposit insurance and capital requirements

 

Indicative reading list

Chartered Banker Institute (2012). Risk Management in Banking: Study Text. BPP Learning Media

Bessis, J. (2009). Risk Management in Banking. 3rd Edition. John Wiley & Sons.

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