International Finance MFin
Financial Risk Management ACCFIN5207
- Academic Session: 2026-27
- School: Adam Smith Business School
- Credits: 15
- Level: Level 5 (SCQF level 11)
- Typically Offered: Semester 2
- Available to Visiting Students: No
- Collaborative Online International Learning: No
- Curriculum For Life: No
Short Description
This course examines modern techniques for managing financial risks, including market risk, credit risk, liquidity risk, and operational risk. The course starts with an analysis of risk management problems and risk profiles; then it provides measurement techniques for different types of financial risks on equities, bonds, financial derivatives. It will cover the measurement of value-at-risk (VaR) for measuring market risk and credit risk, economic capital, risk adjusted return on capital. It will discuss how risk measurement tools used for active management of the risk/return profile of financial institutions. It will also cover the new Basel III regulatory requirements for banks.
Timetable
8 x 2 hour practical classes and workshops
4 x 1 hour computer labs
Excluded Courses
None
Co-requisites
None
Assessment
1. Written assignment, including essay; Individual; 2000 words; 25%; ILOs 1-2, 5.
2. Degree exam: online, Individual; 120 minutes; 75%; ILOs 2-4.
Main Assessment In: April/May
Course Aims
The aim of this course is to:
■ To provide participants with an in-depth knowledge of the most recent risk identification, measurement and management techniques. This topic is essential for people involved in managing risks, trading financial assets, operating hedge funds, making financial corporate strategy, as well as regulatory supervision of financial institutions.
■ To provide participants with the skills to quantify practically widely-used financial risks: Value-at-Risk.
■ To equip the techniques of analysing financial risks both for financial and industrial firms.
Intended Learning Outcomes of Course
By the end of the course students will be able to:
1. Critically evaluate the use of Value-at-Risk (VaR) for measuring and managing market risk in equity markets.
2. Critically assess the application of Credit Default Swaps and structured products in the management of credit risk.
3. Analyse liquidity and funding risks and evaluate the role of asset intermediation in Treasury and repo markets.
4. Critically evaluate the implications of Basel regulation for financial institutions and regulatory risk management.
5. Collaborate effectively within a group to design, develop, and deliver a joint output through task allocation, coordination, and collective decision-making.