Bank Risk Management (757N1)
Bank Risk Management
Module 757N1
Module details for 2023/24.
15 credits
FHEQ Level 7 (Masters)
Module Outline
The perception of risk management is fundamentally changing within today's banking institutions. The overall operation of banks needs to be assessed in terms of the increase in risk to the individual institution and to the financial system as a whole. Such a risk culture is reinforced by the new Basel Accord, due to be implemented in a number of countries around the globe by the end of the current decade. This Accord, amongst several other things, requires the allocation of capital against the major components of risk.
This module is designed to provide students with a thorough understanding of different risk management techniques used to assess and control risk in the banking sector of the economy. Some of the most important standards for estimating risk across the banking industry, and among regulatory and supervisory authorities, and central banks are analytically presented in this module. In specific, the module examines Value-at-Risk (VaR), the main risk control techniques like limit setting and risk budgeting, the Debit and Credit Value Adjustments (DVA and CVA), as well as the credit scoring and other important methods of credit risk assessment. The use of credit lines and the different forms of collateral are also presented and discussed. Bank stress tests, which are meant to detect weak spots in the entire banking system at an early stage so that preventive action can be taken by banks and authorities against systemic risk, are furthermore examined.
Module learning outcomes
Comprehend and critically discuss the various risks that need to be measured and managed in the financial sector of the economy both from a bank-specific viewpoint and also from a systemic viewpoint.
Compare and contrast the different methods of assessing the risk of banking institutions paying special attention to Value-at-Risk.
Discuss from a critical perspective the key risk control techniques (e.g., limit setting and risk budgeting), the Debit and Credit Value Adjustments (DVA and CVA), as well as credit scoring and other methods of credit risk assessment.
Comprehend the key roles that credit lines and collateral play in the operation of the banking system.
Critically reflect upon the task of authorities to ensure the smooth operation of banking institutions and of the financial system as a whole by conducting scenario analysis.
| Type | Timing | Weighting |
|---|---|---|
| Report (3000 words) | Semester 2 Assessment Week 3 Thu 16:00 | 75.00% |
| Coursework | 25.00% | |
| Coursework components. Weighted as shown below. | ||
| Essay | T2 Week 11 | 100.00% |
Timing
Submission deadlines may vary for different types of assignment/groups of students.
Weighting
Coursework components (if listed) total 100% of the overall coursework weighting value.
| Term | Method | Duration | Week pattern |
|---|---|---|---|
| Spring Semester | Lecture | 2 hours | 11111111111 |
| Spring Semester | Seminar | 1 hour | 11111111111 |
How to read the week pattern
The numbers indicate the weeks of the term and how many events take place each week.
Dr Qiyu Zhang
Assess convenor
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