Form C4
Heriot-Watt University - Course Descriptor
1. Course
Code
C30SX
2. Course
Title
Risk Management & Derivatives
5. School
Management & Languages
7. Delivery:
Location &
Semester
Edin
SBC
Orkney
Dubai
IDL
Collaborative Partner
Approved Learning Partner
Sem 1
Sem…….
Sem………..
Sem……
Sem
Name…………………….....Sem..…...
Name ……………………….…
6. Course
Co-ordinator
8. Pre-requisites
C39SN Financial Derivatives or C39CE Managing Corporate Value
9. Linked Courses
(specify if synoptic)
10. Excluded Courses
None
11. Replacement Courses
Code:
10
4. Credits
15
Dr Boulis Ibrahim
Sem……..
None
12. Degrees for which
this is a core course
Date Of Replacement:
13. The course may be
delivered to:
3. SCQF
Level
UG only
PG only
UG & PG
BSc (Hons) in Mathematics with Finance
14. Available as an Elective?
Yes
No
15. Aims
The aim of this course is to develop an in-depth understanding of security analysis and derivatives applications in portfolio and risk management
16. Syllabus
Based on a collection of articles from both academic and practitioner orientated journals covering the areas mentioned in ‘subject mastery’ below.
.
17. Learning Outcomes (HWU Core Skills: Employability and Professional Career Readiness)
1/2
Form C4
Heriot-Watt University - Course Descriptor
Subject Mastery
Understanding, Knowledge and Cognitive Skills
Scholarship, Enquiry and Research (Research-Informed Learning)

Personal Abilities
understand and explain the various types of risk faced by various
 critically evaluate relevant information gathered from a variety of
financial institutions;
sources.
 understand and critically appraise the various strategies involved in
risk management practices (financial engineering);
 appraise the shortcomings of Black-Scholes option pricing model
and master knowledge of methods of using these shortcomings;
 understand derivatives of options (the Greeks) and their uses.
 assess the effect of changing volatility in creating ‘smiles’ in B/S
implied volatility estimates;
 describe the various uses of derivatives in dynamic asset allocation,
portfolio insurance, hedging, executive compensation and banking.
Industrial, Commercial & Professional Practice
Autonomy, Accountability & Working with Others Communication, Numeracy & ICT
 discuss real options (e.g., corporate capital
 define, explain, discuss and critically appraise
 write
well-constructed
essays
investment projects) and their evaluations.
relevant subject issues in individual and group
using well-balanced arguments;
 discuss the determinants of portfolio
efforts.
performance.
 understand bond portfolio management and the
determinants of bond prices.
 critically appraise security analyses
(fundamental v. technical) versus asset
allocation.
18. Assessment Methods
Method
19. Re-assessment Methods
Duration of Exam
Weighting (%)
Synoptic courses?
(if applicable)
Coursework
Examination
2 hours
Method
Duration of Exam
(if applicable)
30%
70%
20. Date and Version
Date of Proposal
02 February 2013
Date of Approval by
School Committee
Date of
Implementation
Version
Number
2/2
Diet(s)