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Financial Risk Management

Unit code: HES6723

Credit points12.5 Credit Points
Duration
 
12 weeks
Contact hoursEquivalent to 36 hrs contact time or 150 hrs total study time
CampusOff-Campus
Prerequisites
 
Nil
Corequisites
 
Nil

Aims and objectives

  • Developing an understanding of financial risk in theoretical and practical terms
  • Building an ability to identify and manage financial risks
  • Developing capacities to apply financial risk management techniques in commercial situations

Teaching methods

Distance Education via Blackboard and email

Assessment

3 Assignments (worth 100%)

Generic skills outcomes

Graduate Attributes:
On successful completion of this unit the student should have the:
  • Ability to detail the basics of financial risk management and the environments in which these basics exist.
  • Ability to explain the elements of finance, tax, and accounting which are necessary to deal with financial risks. 
  • Understanding of the methods used to analyse the risks associated with investments. 
  • Ability to detail the processes used to measure the financial risks and make decisions involving financial risks 
  • Understanding of the methods used to control financial risks.
  • Ability to apply the standard methods of evaluating projects where financial risk occurring including particular financial modelling

Content

  • Introduction to Finance
  • Introduction to Accounting
  • Introduction to Taxation
  • The investment decision and the notion of investment risks
  • Risk management and making decisions under uncertainty
  • Forecasting for investment decisions & Risk Defined within the ‘Financing’ decision
  • Applying the Investment Decision under Certainty
  • Advanced application of risk analysis models (Part 1, Part 2)
  • Case studies in financial risk management

Text books

  • Dayananda D, Irons R, Harrison S, Herbohn J, and Rowland P. 2002, Capital Budgeting: Financial
    Appraisal of Investment Projects, Cambridge University Press, Cambridge U.K.
Additional readings include:
  • Brealey R, Myers S, Partington G Robinson, D, 2000, Principles of Corporate Finance, Irwin
    McGraw-Hill Sydney.
  • Clemen RT, 1996, Making Hard Decisions, Duxbury Press, Belmont, California.
  • Hogarth R, 1987, Judgement and Choice 2nd edn, John Wiley and Sons, Tiptre, Essex
  • Jennings D, Wattam S, 1994, Decision Making : An integrated approach, Pitman Publishing.
  • Moyer R, McGuigan J, Kretlow W, 2001, Contemporary Financial Management, 8th edn, South-
    Western College Publishing, Cincinnati.
  • Peck LC, 1970, Basic Mathematics for Management and Economics, Scott, Foresman and Co,
    Glenview Illinois
  • Plous S, 1993, The Psychology of Judgement and decision Making, McGraw-Hill, New York
    Shapiro A, 1996, Multinational Financial Management, 5th edn, Prentice-Hall, Englewood Cliffs.
  • Stark K, Irons R, Collins K, 2005, Financial Modelling Cookbook: Recipes for Capital Budgeting,
    Trueblue Press, Perth.
  • Stermole FJ, 1982, Economic evaluation and investment decision methods, Investment Evaluation
    Corporation, Golden Colorado.
  • Waring AE, Glendon AI, 1998, Managing Risk: Critical issues for survival and success in the 21st
    Century, International Thomson Business Press, London.
  • Yates JF ed., 1992, Risk-Taking Behaviour, John Wiley and Sons, Chichester US