Risk Management and Financial Engineering - 2016

To enrol in this unit, you must be accepted into a course from the provider. Read before you start

Unit summary

MFIN2081

  • Level of Study: Postgraduate
  • Study load: 0.125 EFTSL
  • Delivery method: Fully Online
  • Prerequisites: Yes
  • Duration: 13 weeks
  • Government loans available: FEE-HELP
  • Availability for 2016: Sess 3
  • Availability for 2017: Sess 2
  • Assessment: Assignment (40%) , Invigilated Exam (60%)

Unit provided by

or
2016 Fees
AUD$
Domestic 3,840.00
International 4,090.00

Financial Engineering is the design, development and implementation of innovative financial products and financial processes in the major segment of equities, currencies, interest rates and commodities for trading investment hedging and complete risk management. This unit provides a detailed understanding of how the latest financial instruments are used not only to enhance return but also as solid risk management tools. The unit is practically oriented, encompassing theoretical developments, the pricing of new financial instruments and their application in a real world environment.

At the completion of this unit students will be able to:

  1. understand the theoretical development of new financial engineering instruments to enhance returns.
  2. apply the latest financial engineering instruments to hedge your equity, currency, interest rate risk and commodity exposure in real market conditions
  3. evaluate risk management aspects of financial assets to maximize investment returns
  4. competently structure financial engineering instruments.
  • Assignment (40%)
  • Invigilated Exam (60%)
For more information on invigilated exams see Exams and results

Recommended prerequisites

You are recommended to have completed the following unit(s) or have equivalent knowledge before starting this unit:

  • Broadband access

In order to enrol in this unit, you must be accepted into one of the following courses:

Please visit the course details page and read the Requirements tab for more information about eligibility.

This unit addresses the following topics.

NumberTopic
1Introduction to Risk Management and Financial Engineering
2Equity Risk Management and Related Financial Engineering Instruments
3Credit Risk Management
4Currency Risk Management and Currency Hedging Techniques
5Interest Rate Risk Management
6Capital Adequacy Requirement (CAR) Detailed Calculation Basel Requirement - CAR for Financial Institutions
7Risk Management Reports
8Structured Products and Exotic Options
9Hedge Funds Investing and Management
10RMIT Business Post- Graduate Investment Challenge

This unit is delivered using the following methods and materials:

Instructional Methods

  • Blogs
  • Discussion Forum/Discussion Board
  • Online Quizzes/Tests
  • Online assignment submission
  • Podcasting/Lecture capture
  • Standard Media
  • Web links
  • Wikis

This unit is a core requirement in the following courses:

This unit may be eligible for credit towards other courses:

  1. Many undergraduate courses on offer through OUA include 'open elective' where any OUA unit can be credited to the course. You need to check the Award Requirements on the course page for the number of allowed open electives and any level limitations.
  2. In other cases, the content of this unit might be relevant to a course on offer through OUA or elsewhere. In order to receive credit for this unit in the course you will need to supply the provider institution with a copy of the Unit Profile in the approved format, which you can download here. Note that the Unit Profile is set at the start of the year, and if textbooks change this may not match the Co-Op textbook list.

Textbook information for this unit is currently being updated and will be available soon. Please check back regularly for updates. Alternatively, visit the The Co-op website and enter the unit details to search for available textbooks.

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