This unit enables students to analyse the sources of financial risk as well as the importance of implementing hedging procedures in order to mitigate risk. The unit is designed to equip students with quantitative skills and understanding of a variety of derivative instruments that can be used for hedging purposes, while broadening their knowledge of managing risk within an ethical framework. The increasing instability of global financial markets and ethical scandals underscores the importance of this unit, whereby it has become a basic best practice in order to mitigate unforeseen losses. Students will also learn to how to mitigate financial risks using a variety of financial derivatives.
Students who successfully complete this unit will be able to:
1 Analyse the sources of financial risk and the importance of implementing effective financial risk management procedures in business entities
2 Apply the understanding of a variety of derivative instruments in hedging and trading strategies and how these instruments are priced.
3 Evaluate hedging strategies and their outcomes using derivative instruments, to hedge financial risks in a variety of assets
4 Evaluate the need for sound financial risk management policies and procedures in organisations within an ethical framework.
5 Apply research principles to conduct a piece of work collaboratively.