Course Title: Financial Risk Management and Financial Engineering

Part A: Course Overview

Course ID: 005018

Course Title: Financial Risk Management and Financial Engineering

Credit Points: 16

Course Code




Learning Mode

Teaching Period(s)


City Campus


625H Economics, Finance & Marketing


Sem 1 2006,
Sem 2 2006

Course Coordinator: Professor Malick Sy

Course Coordinator Phone: +61 3 9925 5858

Course Coordinator Email:

Pre-requisite Courses and Assumed Knowledge and Capabilities

BAFI 1059 Managerial Finance
ECON1095 Quantitative Methods

Course Description

This course provides a detailed understanding of how the latest financial instruments are used to hedge equity, currency and interest rate risk exposures. The unit first outlines the theoretical aspect of the different hedging tools currently used and the practical applications on how the hedging methods work in the real environment.

Objectives/Learning Outcomes/Capability Development

After completion of this course, students should be able to:

§ Understand current developments and current thinking in the field of Risk and Risk Management.
§ Understand the application of the latest financial products as risk management tools in key financial markets
§ Understand the structure, pricing and valuation of the main classes of the latest financial products
§ Understand modern approaches to measurement and assessment of financial risk

Overview of Learning Activities

To benefit from the course, students are required to undertake the following activities :

- Attendance at lectures as scheduled by the School.
- Commitment to complete all assignments required.
- Reading of all references and books related to different topics as recommended by the lecturer-in-charge.

Overview of Learning Resources

Risk Management and Financial Engineering is a very complex area and requires different textbooks for better analysis and clear understanding. Apart from the following proposed textbooks, students are encouraged to find other alternative sources of information and references.

The supplied notes will be used for Topics 1-3 inclusive. The Textbook will be referred to for Topics 4-6. Students musty have access to the prescribed textbook for Topics 4-6.

Overview of Assessment

The assessment tasks you are required to complete are:

Assignment 40 %
Final Examination 60 %

To achieve a pass in this course, students must achieve an aggregate mark of 50%.