Module BAK-2102:
Risk Analysis
Risk Analysis 2024-25
BAK-2102
2024-25
Bangor Business School
Module - Semester 1
15 credits
Module Organiser:
Debbie Gilliland
Overview
This course provides students with a general introduction to the subject of risk and its relationship to the governance of companies. It also provides an insight into how risk is calculated and mitigated in organisations. The course is specifically designed to enable students to apply risk management techniques in the context of a simulated learning environment.
Indicative Content:
• Credit Risk • Interest rate risk • Liquidity risk • Foreign exchange risk • Market risk • Country risk • Operational risk • Off Balance sheet risk • Capital risk and solvency • Interrelation of risks • General risk management • Credit risk management • Managing the lending functions • Managing the interest rate risk • Managing the liquidity risk • Managing market risk
Assessment Strategy
-threshold -D- to D+ (40-49%): No major omissions or inaccuracies in the deployment of information/skills. Some grasp of theoretical/conceptual/practical elements. Integration of theory/practice/information present intermittently in pursuit of the assessed work's objectives.
-good -B- to B+ (60-69%): Very good performance Most of the relevant information accurately deployed. Good grasp of theoretical/conceptual/practical elements. Good integration of theory/practice/information in pursuit of the assessed work's objectives. Evidence of the use of creative and reflective skills.
-excellent -A- to A+ (70%+): Outstanding performance. The relevant information accurately deployed. Excellent grasp of theoretical/conceptual/practice elements. Good integration of theory/practice/information in pursuit of the assessed work's objectives. Strong evidence of the use of creative and reflective skills.
-another level-C- to C+ (50-59%): Much of the relevant information and skills mostly accurately deployed. Adequate grasp of theoretical/conceptual/practical elements. Fair integration of theory/practice/information in the pursuit of the assessed work's objectives. Some evidence of the use of creative and reflective skills.
Learning Outcomes
- Apply the techniques of risk management to circumstances affecting commercial organisations.
- Calculate and analyse risk using quantitative and qualitative data.
- Discuss the nature of risk and its relationship to corporate governance
- Explain the different types of risk inherent in the operations of customers.
- Identify the potential adverse consequences of risk on the financial performance of organisations
Assessment method
Class Test
Assessment type
Summative
Description
Students will take an hour-long test to assess their understanding of basic concepts and prepare them for the final exam.
Weighting
20%
Assessment method
Report
Assessment type
Summative
Description
The project will require students to use a Portfolio Simulation program to measure the risk of an investment portfolio for a hypothetical client. The software mimics the real-world financial market environment. The students will assume the role of a hedge fund manager and will be asked to design and execute an appropriate strategy to maximise the portfolio’s return and measure its risk over a short period of investment. Students will then need to write a report about the measured portfolio risk reflecting on the decisions they made in relation to the concepts they learnt in the course. Reports should not be more than 1500 (+/- 10%) words long.
Weighting
30%
Assessment method
Exam (Centrally Scheduled)
Assessment type
Summative
Description
Students will take an unseen two-hour-long examination paper. The exam paper will consist of one section only, assessing primary and secondary concepts. Students will be required to answer three questions out of five possible questions. Each question will be broken down into a number of sub-questions. This will allow for the assessment of the candidates’ understanding of the theory, as well as their ability to perform the necessary calculations.
Weighting
50%