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 |
Campus |
Career |
School |
Learning Mode |
Teaching Period(s) |
BAFI1086 |
City Campus |
Postgraduate |
625H Economics, Finance & Marketing |
Face-to-Face |
Sem 1 2006,
Sem 2 2006 |
Course Coordinator: Professor Malick Sy
Course Coordinator Phone: +61 3 9925 5858
Course Coordinator Email: malick.sy@rmit.edu.au
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%.