Banking and Insurance Risk Management
Duration
- One Semester or equivalent
Contact hours
- 36 hours
On-campus unit delivery combines face-to-face and digital learning.
Prerequisites
FIN60006 Frontiers in FinTechCorequisites
NilAims and objectives
This unit provides students with the knowledge to understand different perspectives of risk management in financial service organisations. Students will learn how banks and insurance companies manage major potential risks in their businesses. This includes introducing and analysing risk management frameworks and strategies and exploring the role of regulation in reducing risks in the financial system and to investors and customers. Specific strategies and concepts covered include derivatives and insurance and the potential impacts of new financial technologies on financial services risks for different stakeholders.
Students who successfully complete this unit will be able to:
1. Critically analyse different risk management frameworks and apply these frameworks to identify issues faced by the banks
2. Demonstrate advanced knowledge of different risk management approaches and the types of risk covered by insurance products
3. Critically evaluate the regulatory framework in the banking and insurance sectors
4. Synthesise prior learning including the use of research techniques to address complex risk management approaches in banks and insurance companies
1. Critically analyse different risk management frameworks and apply these frameworks to identify issues faced by the banks
2. Demonstrate advanced knowledge of different risk management approaches and the types of risk covered by insurance products
3. Critically evaluate the regulatory framework in the banking and insurance sectors
4. Synthesise prior learning including the use of research techniques to address complex risk management approaches in banks and insurance companies
Courses with unit
Unit not offered in 2021 (replacement is FIN80018)Unit information in detail
- Teaching methods, assessment, general skills outcomes and content.
Teaching methods
Block Mode:
This unit will be delivered in block or intensive mode. Block mode may consist of blended, intensive and immersive teaching, which can include full day teaching and weekend teaching requirements – as specified in the Unit Outline.
Student workload:
For all teaching and learning structures (both face to face and online), students are expected to spend an average of 150 hours per unit in total over the duration of the study period
This includes all:
• Scheduled teaching and learning events and activities (contact hours timetabled in a face-to-face teaching space) and scheduled online learning events (contact hours scheduled in an online teaching space), and
To be successful, students should:
• Read all prescribed materials and/or view videos in preparation for each class
• Attend and engage in all scheduled classes (face to face or online)
• Start assessment tasks well ahead of the due date, and submit assessments promptly
• Read / listen to all feedback carefully, and consider it for future assessment
• Engage with fellow students and teaching staff (don’t hesitate to ask questions)
This unit will be delivered in block or intensive mode. Block mode may consist of blended, intensive and immersive teaching, which can include full day teaching and weekend teaching requirements – as specified in the Unit Outline.
Student workload:
For all teaching and learning structures (both face to face and online), students are expected to spend an average of 150 hours per unit in total over the duration of the study period
This includes all:
• Scheduled teaching and learning events and activities (contact hours timetabled in a face-to-face teaching space) and scheduled online learning events (contact hours scheduled in an online teaching space), and
• Non-scheduled learning events and activities (including directed online learning activities, assessments, independent study, student group meetings, and research)
• Read all prescribed materials and/or view videos in preparation for each class
• Attend and engage in all scheduled classes (face to face or online)
• Start assessment tasks well ahead of the due date, and submit assessments promptly
• Read / listen to all feedback carefully, and consider it for future assessment
• Engage with fellow students and teaching staff (don’t hesitate to ask questions)
Assessment
Class test (Individual) 20% - 30%
Research Assignment 1 Individual 30% - 40%
Research Assignment 2 Individual 30% - 50%
Research Assignment 1 Individual 30% - 40%
Research Assignment 2 Individual 30% - 50%
General skills outcomes
• problem solving skills
• analysis skills
• communication skills
• ability to tackle unfamiliar problems
• ability to work independently
• analysis skills
• communication skills
• ability to tackle unfamiliar problems
• ability to work independently
Content
• Risk and its treatment
• Insurance and risk
• Regulation of the insurance industry
• Regulation of financial intermediaries
• Conventional risk faced by the financial Institutions
• Value at Risk
• Financial service and investments in technology
• Derivatives and risk management
• Pricing of derivatives
• Insurance and risk
• Regulation of the insurance industry
• Regulation of financial intermediaries
• Conventional risk faced by the financial Institutions
• Value at Risk
• Financial service and investments in technology
• Derivatives and risk management
• Pricing of derivatives
Study resources
- Reading materials and references.
Reading materials
Students are advised to check the unit outline in the relevant teaching period for appropriate textbooks and further reading.
References
Text: Chance, D. & Brookes, R. 2013, An Introduction to Derivatives and risk management, 7th Edition, South-Western, Cengage Learning.
Students will also be provided with links to finance and economics related websites, relevant Australian Government websites and other databases.