Financial Risk Management - 2018

Unit summary

FIN30014

  • Level of Study: Undergraduate Level 3
  • Study load: 0.125 EFTSL
  • Delivery method: Fully Online
  • Prerequisites: Yes
  • Duration: 13 weeks
  • Government loans available: FEE-HELP, HECS-HELP
  • Availability for 2017: SP3
  • Availability for 2018: SP3
  • Assessment: Assessment - Online Individual (30-40%) , Assignment - Group (10-20%) - Learn more

Unit provided by

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2018 Fees
AUD$
Domestic 3,070.00
Domestic continuing 1,465.00
HECS 1,368.00
International 3,320.00
International continuing 1,715.00

Tuition fees are reduced for continuing registered SWI students.
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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.
  • Assessment — Online Individual (30-40%)
  • Assignment — Group (10-20%)
  • Invigilated Exam — Individual (40-60%)
For more information on invigilated exams see Exams and results

Mandatory prerequisites

You must have successfully completed the following unit(s) before starting this unit:

If you have completed equivalent study at another university, please contact a Student Advisor for advice.

This unit addresses the following topics.

NumberTopic
1Introduction to financial risk management
2Futures and forwards - pricing, valuation and their use in hedging financial risk
3Options - option types, option payoffs, principles of option pricing, option strategies, hedging with options
4Interest rate and foreign currency swaps
5Interest rate derivatives, using interest rate caps and collars for hedging
6Credit derivatives - credit default swaps (CDS); collateralised debt obligations (CDO)
7Financial risk management policies and procedures, ethics and governance

Each unit offered through OUA provides students with unit information that includes assessment topics and due dates, policy information and contact numbers for university support and academic staff. Study materials will also clearly outline each week's topic, readings, student activities and the format of all assessment.

This unit is an approved elective 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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