Financial Institutions Risk Management

Course code ACFI3190Units 10Level 3000Faculty of Business and LawNewcastle Business School

Effective firm wide risk management sustains financial institutions. This course provides an overview of financial markets and the role of financial institutions, liquidity management, the use of financial derivatives in the management of interest rate risk, financial institutions liability management, management of the securities portfolio, credit analysis, management of the loan portfolio, management of bank capital, an overview of financial institutions regulations and issues in international banking. International perspectives to risk management and building skill in problem solving and decision making will be developed.

Available in 2015

Callaghan CampusSemester 2
Previously offered in 2014
ObjectivesUpon successful completion you will have the knowledge, skills and understanding to:
1. Define and distinguish the various sources of commercial and retail debt financing available through Australian financial institutions
2. Provide an overview of basic risk management procedures of banks
3. Identify in the financial statements of institutions the indicators of impending crisis
4. Construct asset-liability portfolios for financial institutions, together with portfolios of financial derivative instruments, that effectively minimise the
potentially damaging effects of interest rate volatility on bank (and corporate) profitability
5. Apply appropriate procedures for appraising the credit risks inherent in bank loans, and for the pricing of loan agreements
6. Define sources of international finance, and analyse how the current banking system provides access to such funds
7. Provide an overview of the regulatory constraints under which Australian banks, foreign banks, building societies and credit unions operate.
8. Analyse, evaluate and synthesise quantitative and qualitative information accessed to manage risk.
9. Recognise and employ the processes and strategies which assist independent learning.
ContentProvides an overview of financial markets and the role of financial institutions, liquidity management, the use of financial derivatives in the management of interest rate risk, financial institutions liability management, management of securities portfolios, credit analysis, management of loan portfolios, management of bank capital, an overiview of financial institutions regulations and issues in international banking.
Replacing Course(s)NA
TransitionNA
Industrial Experience0
Assumed KnowledgeACFI2070 and one of the following courses ACFI2080, ACFI3006.
Modes of DeliveryInternal Mode
Teaching MethodsLecture
Tutorial
Assessment Items
Essays / Written AssignmentsCase study
Examination: Formal
Quiz - Classmid-semester quiz
Contact HoursLecture: for 2 hour(s) per Week for Full Term
Tutorial: for 1 hour(s) per Week for 12 weeks
Timetables2015 Course Timetables for ACFI3190