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

    2025
  • Enrolment Period

    1
  • Version

    5
  • Credit Points

    20
  • Full Year Unit

    N
  • Mode of Delivery

    On Campus
    Online
  • Unit Coordinator

    Prof Robert POWELL

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.
  5. Justify financial decisions and judgements that address a complex banking issue considering the ethical and social consequences.

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's LMS

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 via ECU’s LMS as well as additional ECU learning technologies

Additional Learning Experience Information

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 School Progression Panel.

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.

Assessment

Students please note: The marks and grades received by students on assessments may be subject to further moderation. Informal vivas may be conducted as part of an assessment task, where staff require further information to confirm the learning outcomes have been met. All marks and grades are to be considered provisional until endorsed by the relevant School Progression Panel.

Academic Integrity

Integrity is a core value at Edith Cowan University, and it is expected that ECU students complete their assessment tasks honestly and with acknowledgement of other people's work as well as any generative artificial intelligence tools that may have been used. This means that assessment tasks must be completed individually (unless it is an authorised group assessment task) and any sources used must be referenced.

Breaches of academic integrity can include:

Plagiarism

Copying the words, ideas or creative works of other people or generative artificial intelligence tools, without referencing in accordance with stated University requirements. Students need to seek approval from the Unit Coordinator within the first week of study if they intend to use some of their previous work in an assessment task (self-plagiarism).

Unauthorised collaboration (collusion)

Working with other students and submitting the same or substantially similar work or portions of work when an individual submission was required. This includes students knowingly providing others with copies of their own work to use in the same or similar assessment task(s).

Contract cheating

Organising a friend, a family member, another student or an external person or organisation (e.g. through an online website) to complete or substantially edit or refine part or all of an assessment task(s) on their behalf.

Cheating in an exam

Using or having access to unauthorised materials in an exam or test.

Serious outcomes may be imposed if a student is found to have committed one of these breaches, up to and including expulsion from the University for repeated or serious acts.

ECU's policies and more information about academic integrity can be found on the student academic integrity website.

All commencing ECU students are required to complete the Academic Integrity Module.

Assessment Extension

In some circumstances, Students may apply to their Unit Coordinator to extend the due date of their Assessment Task(s) in accordance with ECU's Assessment, Examination and Moderation Procedures - for more information visit https://askus2.ecu.edu.au/s/article/000001386.

Special Consideration

Students may apply for Special Consideration in respect of a final unit grade, where their achievement was affected by Exceptional Circumstances as set out in the Assessment, Examination and Moderation Procedures - for more information visit https://askus2.ecu.edu.au/s/article/000003318.

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