School: Business and Law

This unit information may be updated and amended immediately prior to semester. To ensure you have the correct outline, please check it again at the beginning of semester.

  • Unit Title

    Risk Management in Banking
  • Unit Code

    ECF6125
  • Year

    2019
  • Enrolment Period

    1
  • Version

    3
  • Credit Points

    20
  • Full Year Unit

    N
  • Mode of Delivery

    On Campus
    Online
  • Unit Coordinator

    Dr Tonmoy CHOUDHURY

Description

Students will develop the skills to effectively manage the risk-return tradeoff inherent in a large financial institution, such as a bank. While there are a number of financial risks which need to be considered in managing a bank, students will focus on capital risk, interest rate risk, credit risk and liquidity risk. Students will also gain an appreciation of the impact that international and national prudential regulations have on this risk-return tradeoff; particularly in terms of the role of the Bank of International Settlements (BIS) and the Australian Prudential Regulation Authority (APRA). The second objective is for students to develop and apply independent research skills applicable to risk management in financial institutions. Thus, this unit incorporates the planning and execution of a substantial research based project relating to key risks of banks.

Learning Outcomes

On completion of this unit students should be able to:

  1. Explain what makes the financial statements and operations of financial institutions special.
  2. Understand the principles involved in the risk-return tradeoff for capital, liquidity, credit and interest rate risk.
  3. Evaluate the risk and the risk-return trade-off for capital, liquidity, credit and interest rates for financial institutions.
  4. Determine the impact that the current prudential regulations have on the risk-return trade off for Australian and international financial institutions.
  5. Work effectively in a team, including the ability to reflect on individual performance in a team, to plan a substantial risk-based research based project on how well financial institutions manage their risks and comply with prudential regulations.
  6. Effectively communicate your risk-based research project plan in an oral presentation.
  7. Execute your risk-based research based project and effectively communicate your findings in a written document.
  8. Plan and execute a research based project.

Unit Content

  1. Financial institutions and the process of financial intermediation.
  2. The special nature of the financial statements and operation of financial institutions.
  3. Planning, researching executing and writing up a research based project relating to bank risk.
  4. The role of prudential regulation in shaping the risk-return tradeoff, particularly as a result of the revised Basel regulations coming out of the Global Financial Crisis.
  5. Capital risk.
  6. Liquidity risk.
  7. Credit Risk.
  8. Interest rate risk.
  9. Securitisation

Additional Learning Experience Information

Students attend weekly three-hour seminars. Central to the learning process is the development of students' research skills. Students will be required to present and communicate a research plan relating to financial institutions management. The research plan will be followed by a two-part research paper, involving an analysis and comparison of the risks for two Australian banks.

Assessment

GS1 GRADING SCHEMA 1 Used for standard coursework units

Students please note: The marks and grades received by students on assessments may be subject to further moderation. All marks and grades are to be considered provisional until endorsed by the relevant Board of Examiners.

ON CAMPUS
TypeDescriptionValue
PresentationGroup Tutorial Presentation of Research Project Plan20%
ProjectResearch Project40%
Research PaperResearch Paper40%

Disability Standards for Education (Commonwealth 2005)

For the purposes of considering a request for Reasonable Adjustments under the Disability Standards for Education (Commonwealth 2005), inherent requirements for this subject are articulated in the Unit Description, Learning Outcomes and Assessment Requirements of this entry. The University is dedicated to provide support to those with special requirements. Further details on the support for students with disabilities or medical conditions can be found at the Access and Inclusion website.

Academic Misconduct

Edith Cowan University has firm rules governing academic misconduct and there are substantial penalties that can be applied to students who are found in breach of these rules. Academic misconduct includes, but is not limited to:

  • plagiarism;
  • unauthorised collaboration;
  • cheating in examinations;
  • theft of other students' work;

Additionally, any material submitted for assessment purposes must be work that has not been submitted previously, by any person, for any other unit at ECU or elsewhere.

The ECU rules and policies governing all academic activities, including misconduct, can be accessed through the ECU website.

ECF6125|3|1

School: Business and Law

This unit information may be updated and amended immediately prior to semester. To ensure you have the correct outline, please check it again at the beginning of semester.

  • Unit Title

    Risk Management in Banking
  • Unit Code

    ECF6125
  • Year

    2019
  • Enrolment Period

    2
  • Version

    4
  • Credit Points

    20
  • Full Year Unit

    N
  • Mode of Delivery

    On Campus
    Online
  • Unit Coordinator

    Dr Tonmoy CHOUDHURY

Description

Students will develop the skills to effectively manage the risk-return tradeoff inherent in a large financial institution, such as a bank. While there are a number of financial risks which need to be considered in managing a bank, students will focus on capital risk, interest rate risk, credit risk and liquidity risk. Students will also gain an appreciation of the impact that international and national prudential regulations have on this risk-return tradeoff; particularly in terms of the role of the Bank of International Settlements (BIS) and the Australian Prudential Regulation Authority (APRA). The second objective is for students to develop and apply independent research skills applicable to risk management in financial institutions. Thus, this unit incorporates the planning and execution of a substantial research based project relating to key risks of banks.

Learning Outcomes

On completion of this unit students should be able to:

  1. Explain the operations and risk management of financial institutions.
  2. Evaluate the risk and the risk-return trade-off for capital, liquidity, credit and interest rates for financial institutions.
  3. Determine the impact that the current prudential regulations have on the risk-return trade off for Australian and international financial institutions.
  4. Independently initiate, plan and execute a substantial project to meet agreed financial standards.

Unit Content

  1. Financial institutions and the process of financial intermediation.
  2. The special nature of the financial statements and operation of financial institutions.
  3. Planning, researching executing and writing up a research based project relating to bank risk.
  4. The role of prudential regulation in shaping the risk-return tradeoff, particularly as a result of the revised Basel regulations coming out of the Global Financial Crisis.
  5. Capital risk.
  6. Liquidity risk.
  7. Credit Risk.
  8. Interest rate risk.
  9. Securitisation

Learning Experience

ON-CAMPUS

Students will attend on campus classes as well as engage in learning activities through ECU Blackboard.

JoondalupMount LawleySouth West (Bunbury)
Semester 213 x 3 hour seminarNot OfferedNot Offered

For more information see the Semester Timetable

ONLINE

Students will engage in learning experiences through ECU Blackboard as well as additional ECU learning technologies.

Additional Learning Experience Information

Students attend weekly three-hour seminars. Central to the learning process is the development of students' research skills. Students will be required to present and communicate a research plan relating to financial institutions management. The research plan will be followed by a two-part research paper, involving an analysis and comparison of the risks for two Australian banks.

Assessment

GS1 GRADING SCHEMA 1 Used for standard coursework units

Students please note: The marks and grades received by students on assessments may be subject to further moderation. All marks and grades are to be considered provisional until endorsed by the relevant Board of Examiners.

ON CAMPUS
TypeDescriptionValue
PresentationTutorial Presentation of Research Project Plan20%
ProjectResearch Project40%
Research PaperResearch Paper40%
ONLINE
TypeDescriptionValue
PresentationTutorial Presentation of Research Project Plan20%
ProjectResearch Project40%
Research PaperResearch Paper40%

Disability Standards for Education (Commonwealth 2005)

For the purposes of considering a request for Reasonable Adjustments under the Disability Standards for Education (Commonwealth 2005), inherent requirements for this subject are articulated in the Unit Description, Learning Outcomes and Assessment Requirements of this entry. The University is dedicated to provide support to those with special requirements. Further details on the support for students with disabilities or medical conditions can be found at the Access and Inclusion website.

Academic Misconduct

Edith Cowan University has firm rules governing academic misconduct and there are substantial penalties that can be applied to students who are found in breach of these rules. Academic misconduct includes, but is not limited to:

  • plagiarism;
  • unauthorised collaboration;
  • cheating in examinations;
  • theft of other students' work;

Additionally, any material submitted for assessment purposes must be work that has not been submitted previously, by any person, for any other unit at ECU or elsewhere.

The ECU rules and policies governing all academic activities, including misconduct, can be accessed through the ECU website.

ECF6125|4|2