OPERATIONAL RISK MANAGEMENT

FIN5ORM

2018

Credit points: 15

Subject outline

Operational risk is one of the major risks that affect financial institutions and firms.  Operational risk management is continually developing in response to increasing regulatory pressures and advances impacting the financial services industry. You will examine a range of strategies, techniques and models to manage, mitigate and quantify the exposure of financial institutions to operational risk. This subject is one of three subjects which you will consider how to measure and manage a financial services firm to market, credit and operational risk. Taken together these three subjects form the Financial Risk Management specialisation of the Master of Financial Analysis (FRM) degree which is aligned with the curriculum of the GARP FRM designation. 

SchoolLa Trobe Business School

Credit points15

Subject Co-ordinatorDoureige Jurdi

Available to Study Abroad StudentsYes

Subject year levelYear Level 5 - Masters

Exchange StudentsYes

Subject particulars

Subject rules

PrerequisitesN/A

Co-requisites FIN5EME

Incompatible subjectsN/A

Equivalent subjectsN/A

Special conditions Core: LMFRM, LGCM

Graduate capabilities & intended learning outcomes

01. Demonstrate a high level of personal autonomy, creativity and initiative in defining strategies, which apply the knowledge and skills, to identifying and managing the exposure of a financial services firm to operational risk.

Activities:
Lectures, tutorials and examination
Related graduate capabilities and elements:
Literacies and Communication Skills (Writing,Speaking,Quantitative Literacy)
Inquiry and Analytical Skills (Critical Thinking,Creative Problem-solving,Inquiry/Research)
Personal and Professional Skills (Teamwork including leadership and working in groups,Autonomy and independence,Ethical behaviour)

02. Understand and apply qualitative and quantitative prudential standards, current and emerging models, regulation and best practice of operational risk management for financial service firms.

Activities:
Lectures, tutorials and examination
Related graduate capabilities and elements:
Literacies and Communication Skills (Writing,Speaking,Quantitative Literacy)
Inquiry and Analytical Skills (Critical Thinking,Creative Problem-solving,Inquiry/Research)
Personal and Professional Skills (Teamwork including leadership and working in groups,Autonomy and independence,Ethical behaviour)

03. Understand the blocks of the operational risk framework and be able to develop strategies to identify, quantify, mitigate and monitor events leading to operational risk exposure or loss.

Activities:
Lectures, tutorials and examination
Related graduate capabilities and elements:
Literacies and Communication Skills (Writing,Speaking,Quantitative Literacy)
Literacies and Communication Skills (Writing,Speaking,Quantitative Literacy)
Literacies and Communication Skills (Writing,Speaking,Quantitative Literacy)
Inquiry and Analytical Skills (Critical Thinking,Creative Problem-solving,Inquiry/Research)
Inquiry and Analytical Skills (Critical Thinking,Creative Problem-solving,Inquiry/Research)
Personal and Professional Skills (Teamwork including leadership and working in groups,Autonomy and independence,Ethical behaviour)
Personal and Professional Skills (Teamwork including leadership and working in groups,Autonomy and independence,Ethical behaviour)

04. Demonstrate with emerging prudential and regulatory changes that impact managing operational risk within the banking industry. For example, international standards for bank regulation by relevant committees of the Bank of International Settlements.

Activities:
Lectures, tutorials and examination
Related graduate capabilities and elements:
Literacies and Communication Skills (Writing,Speaking,Quantitative Literacy)
Literacies and Communication Skills (Writing,Speaking,Quantitative Literacy)
Inquiry and Analytical Skills (Critical Thinking,Creative Problem-solving,Inquiry/Research)
Inquiry and Analytical Skills (Critical Thinking,Creative Problem-solving,Inquiry/Research)

05. Apply disciplinary specific knowledge to real world cases.

Activities:
Lectures, tutorials and examination
Related graduate capabilities and elements:
Literacies and Communication Skills (Writing,Speaking,Quantitative Literacy)
Inquiry and Analytical Skills (Critical Thinking,Creative Problem-solving,Inquiry/Research)
Personal and Professional Skills (Teamwork including leadership and working in groups,Autonomy and independence,Ethical behaviour)

Subject options

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Start date between: and    Key dates

Melbourne, 2018, Semester 2, Day

Overview

Online enrolmentYes

Maximum enrolment sizeN/A

Enrolment information

Subject Instance Co-ordinatorDoureige Jurdi

Class requirements

Lecture Week: 31 - 43
One 2.0 hours lecture per week on weekdays during the day from week 31 to week 43 and delivered via face-to-face.

Tutorial Week: 31 - 43
One 1.0 hours tutorial per week on weekdays during the day from week 31 to week 43 and delivered via face-to-face.

Assessments

Assessment elementComments% ILO*
Mid Semester Exam (1.5 h)35 01, 02, 03, 04, 05
One 3.0-hour final examinationHurdle requirement: Students must achieve at least 50% in the final examination as well as a total of 50% in the sum of the marks for all assessment tasks to pass the unit.50 01, 02, 03, 04, 05
Applications and case based assessment15 01, 02, 03, 04, 05