THE UNIVERSITY OF THE WEST INDIES
CAVE HILL CAMPUS
ITEM
DESCRIPTION
Course Title
Risk Management of Financial Institutions
Course Code
FINA 6080
Academic Unit (s) to offer Course
Department of Economics
Level
Graduate
Semester
2
Course Credit Load
3
Course Prerequisite (s)
None
Course Description
Course Rationale
General Goals/Aims
Specific Learning Outcomes
This course examines the major risks of FI management: interest rate
risk, liquidity risk, market risk, operational risk, country/sovereign risk,
foreign exchange and credit risk. The course presents quantitative
methods used by financial institutions to measure and manage these
risks and provides a critical analysis of specific topics and financial
regulations: liquidity and capital requirements in banking, sovereign
risk, debt sustainability, debt restructuring. The course is quantitative
in nature.
This course is essential for professionals involved in risk management
and financial corporate strategy. It helps students to develop the
analytical skills aiming at identifying and assessing fundamental issues
and processes related to the activity of financial institutions.
This course aims to provide students with:
• An in-depth knowledge of risk identification, measurement
and management techniques.
• Rationales for risk management and analyze methods to assess
risk in financial institutions.
Upon completion of this course, students should be able to:
•
•
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Identify financial institution risk.
Differentiate between various risks, and how they affect the
health of the financial corporation.
Understand the relative intensity of risk between financial
institution types.
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THE UNIVERSITY OF THE WEST INDIES
CAVE HILL CAMPUS
•
Identify those financial risks that can be managed internally,
versus those requiring professional risk management services.
• Apply academic theory to risk identification and management
of financial risk.
The following topics/concepts/issues will be addressed:
Course Content
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Foundations of Financial Risk Management
Determination of Interest Rates
Interest Rates and Security Valuation
Money Markets
Bond Markets
Managing Credit Risk on the Balance Sheet
Managing Liquidity Risk
Managing Interest Rate Risk and Insolvency Risk
Managing Risk with Derivatives
Managing Risk Off -Balance Sheet with Loan Sales and
Securitization
11. Sovereign risk, debt sustainability, debt restructuring
Mode of Delivery/ Teaching
Methodologies
The course will taught via the use of face-to-face and on-line lectures,
online discussions and tutorial discussion.
Course Assessment Methods
Course work: 50%; Final Examination: 50%
50%
Required Resources
Anthony and Cornett, Marcia (2013), Financial Institutions
Management: A Risk Management Approach, eight edition, McGraw
Hill. (SAC)
Reading Material
(Required/ Recommended Readings)
Recommended Resources
Risk Management and Financial Institutions, by John C. Hull, Wiley,
3e, 2012
Bessis, Joel (2010), Risk Management in Banking, third edition, John
Wiley and Sons Limited.
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