OPERATIONAL RISK MANAGEMENT

FIN5ORM

2015

Credit points: 15

Subject outline

Operational risk management is a relatively new area in finance that has received significant attention in recent years. It is one of the major risks that affect firms and financial institutions. Operational risk arises from people, processes, systems and external events. Students will examine a range of strategies, techniques and models to manage, quantify and mitigate the exposure of the firm to operational risk. Students are also exposed to rigorous treatments of integrated risk management concepts and applications in financial institutions. This subject is one of three subjects which consider how to measure and manage a firm or portfolio's exposure to market, credit and operational risk, respectively.Taken together these three subjects form the specialisation which defines the Master of Financial Analysis (FRM)and aligns it to the curriculum of the leading globally recognised professional accreditation in financial risk management, the Financial Risk Management (FRM) accreditation

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

Prerequisites FIN5EME

Co-requisites FIN5EME

Incompatible subjectsN/A

Equivalent subjectsN/A

Special conditionsN/A

Graduate capabilities & intended learning outcomes

01. APPLICATION: Demonstrate a high level of personal autonomy, creativity and initiative in applying theoretical concepts to analysing a firm or portfolio's exposure to operational risk factors and critically reflect on the effectiveness of the theoretical concepts to explain this exposure.

Activities:
Lectures and tutorials
Related graduate capabilities and elements:
Information Literacy (Information Literacy)
Creative Problem-solving (Creative Problem-solving)
Critical Thinking (Critical Thinking)

02. APPLICATION: Demonstrate a high level of personal autonomy, creativity and initiative in defining strategies, which apply the knowledge and skills, to managing a firm or portfolio's exposure to operational risk.

Activities:
Lectures and tutorials
Related graduate capabilities and elements:
Creative Problem-solving (Creative Problem-solving)

03. KNOWLEDGE: Demonstrate a knowledge and understanding of the theoretical concepts associated with the measurement and management of operational risk that includes an understanding of recent developments in the risk management discipline and profession.

Activities:
Lectures and tutorials
Related graduate capabilities and elements:
Ethical Awareness (Ethical Awareness)

04. SKILL: Demonstrate individually and in groups the cognitive, technical and creative skills to define, research and measure a firm to operational risk factors.

Activities:
Lectures and tutorials
Related graduate capabilities and elements:
Information Literacy (Information Literacy)
Critical Thinking (Critical Thinking)
Creative Problem-solving (Creative Problem-solving)

05. SKILL: Demonstrate the communication skills needed to justify and interpret, recent empirical events, theoretical propositions, methodologies, conclusions and professional advice in relation to measuring and managing a firm or portfolio's exposure to operational risk.

Activities:
Tutorials
Related graduate capabilities and elements:
Teamwork (Teamwork)
Information Literacy (Information Literacy)
Writing (Writing)
Speaking (Speaking)

Subject options

Select to view your study options…

Start date between: and    Key dates

Melbourne, 2015, Semester 2, Day

Overview

Online enrolmentYes

Maximum enrolment sizeN/A

Enrolment information

Subject Instance Co-ordinatorDoureige Jurdi

Class requirements

Tutorial Week: 32 - 43
One 1.0 hours tutorial per week on weekdays during the day from week 32 to week 43 and delivered via face-to-face.

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.

Assessments

Assessment elementComments% ILO*
four 10-question tutorial quizes10 03, 04
one 3-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.60 01, 02, 03, 04, 05
one 4,000-word assignment30 01, 02, 04, 05