FINAN304-21B (TGA)
Financial Risk Management
15 Points
Staff
Convenor(s)
Susanna Lu
4973
MSB.3.20
susanna.lu@waikato.ac.nz
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Paper Description
The unifying theme in this paper is the application of modern finance theory to the financial decision making and management of financial institutions. The subject of decision making in financial institutions is approached from a risk perspective. This paper covers the major decision areas for financial institution management within the framework of a regulatory and "corporate responsible" environment. The main topics covered are various financial risks and their management including interest rate risk, credit risk, liquidity risk, foreign exchange risk and market risk within the international context.
Paper Structure
The paper will be taught through lectures and tutorials. Students’ performance will be evaluated by two individual assignments, Mid-term test, and the Final Exam.
There will be a 2-hour lecture and a 1-hour tutorial each week. Students should get prepared before attending the lectures and tutorials.Note: Tutorials start from the second week. Each tutorial deals with learning materials from the previous week's lectures.
Learning Outcomes
Students who successfully complete the paper should be able to:
Assessment
Assessment Components
The internal assessment/exam ratio (as stated in the University Calendar) is 50:50. The final exam makes up 50% of the overall mark.
Required and Recommended Readings
Required Readings
The prescribed textbook is Anthony Saunders and Marcia Millon Cornett, “Financial Institutions Management: A Risk Management Approach”, 9th Edition, McGraw-Hill, 2018. You can read this textbook online from
https://ebookcentral-proquest-com.ezproxy.waikato.ac.nz/lib/waikato/detail.action?pq-origsite=primo&docID=5471217
Also please refer to the reading list:
https://rl.talis.com/3/waikato/lists/4CF81DAA-0E49-660C-15E7-D7EB35E55281.html?lang=en-US&login=1
Online Support
Workload
For this 15-point paper, the expected workload is approximately allocated as follows:
35 hours: Attend lectures and tutorials
45 hours: Complete assignments (including textbook reading)
70 hours: Prepare for the test and exam (including textbook reading)
Linkages to Other Papers
Prerequisite(s)
Prerequisite papers: FINA201 or FINAN101 or FINAN200 or FINAN202