Demonstrate knowledge and understanding of key risk management concepts and principles, credit risk, strategic and operational risk, Financial risk.

Knowledge & Understanding, Learning, Communication


Understand and apply knowledge of risk management and its role in the creation of sustainable competitive advantage.

Analysis and Application, Communication


Critically examine the development and application of complexity theory and its relation to the quantification of risk management with the proper use of quantitative and qualitative techniques.

Problem Solving & Application.


Evaluate and analyse arguments and scenarios and apply the principles of Risk Frameworks and Risk Governance and manage risk through financial means.

Analysis and Application.

(1) Group presentation (15 mins): perform a risk assessment and recommend strategies for an organization of the students’ choice (50%) (LOs, 1, 2,3,4)

(2) Exam (1.5 hours) (50%) plus 10 mins reading time (LOs 1, 2, 3 & 4)

This module aims to equip students with a thorough understanding of the principles and practices essential for managing financial risks. Students will explore the fundamental concept of risk-return trade-offs, gaining insights into how financial institutions identify and navigate various types of risks. The module delves into the intricacies of market volatility, asset correlation, and advanced risk assessment techniques such as Value at Risk (VaR) and Expected Shortfall. Additionally, it covers the evaluation of interest rate risk, credit risk, operational risk, and liquidity risk, emphasizing practical approaches to their management. Contemporary issues such as climate risk, ESG factors, and sustainability, as well as the comprehensive framework of Enterprise Risk Management (ERM), will also be addressed to provide students with a holistic view of risk management in today's financial landscape.

The learning strategy for the module requires students to commit 200 learning hours (including assessment) of which there will be 36 hours of tutor-led learning and 164 hours of independent and self-directed study. During the tutor-led learning hours, students will receive robust support through interactive tutorials where they can ask questions, clarify doubts, and receive personalized guidance on challenging concepts. These tutorials are designed to foster a deeper understanding of the material, with opportunities for collaborative learning and discussions that enhance comprehension and retention.



The course is designed to be as interactive as possible and employs a variety of pedagogical techniques. Risk management is not a passive or a theoretical exercise. Risk management is not static; it is dynamic. Implementing risk management often produces more questions and problems than answers or solutions. Effective risk management requires engaged management, and this course will attempt to put that into practice.

You will undertake ‘formative’ assessments during the module to help you monitor your learning and provide you and us with ongoing feedback on your progress, that helps you prepare for the ‘summative assessment(s) during or at the end of the module. The formative assessments may include quizzes, short essays, or problem-solving exercises, with feedback given to help students identify areas for improvement.

The use of AI tools such as ChatGPT can be beneficial in learning, however, students must adhere to the following guidelines: (i) all submitted work must be original and written by the student; (ii) if a student utilizes AI tools to generate ideas or receive guidance, this must be clearly cited in the submitted work, just as any other source would be; (iii) students should be mindful of the ethical implications of using AI in their studies, ensuring that their use of such tools does not constitute academic dishonesty.

Unit feedback:
During semester, students’ feedback on the module will be collated and distributed through University's online platform, ensuring consistency with other units and focusing on both improvement and future success. This process includes both individual feedback and cohort-wide summaries, aligning with the university's standardized approach to learning and assessment.

MAIN TEXT:
Hull, John C. (2023) Risk Management and Financial Institutions 6th ed. Wiley.

ADDITIONAL TEXT:
Nason, R., (2017) Rethinking Risk Management: Critically Examining Old Ideas and New Concepts, Business Expert Press (N)
Nason, R., and L. Fleming, (2018) Essentials of Enterprise Risk Management: Practical Concepts of ERM for General Managers, Business Expert Press, (NF)
Nason, R. and B. Chard, (2018) Essentials of Financial Risk Management: Practical Concepts for the General Manager, Business Expert Press, (NC)

Module Study Guide and Handbook
BUV Learning Resources Centre and website
BUV Canvas; Learning Management System
SU VLE
SU Library