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.
School: La Trobe Business School
Credit points: 15
Subject Co-ordinator: Doureige Jurdi
Available to Study Abroad Students: Yes
Subject year level: Year Level 5 - Masters
Exchange Students: Yes
Subject particulars
Subject rules
Prerequisites: N/A
Co-requisites: FIN5EME
Incompatible subjects: N/A
Equivalent subjects: N/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)
Melbourne, 2018, Semester 2, Day
Overview
Online enrolment: Yes
Maximum enrolment size: N/A
Enrolment information:
Subject Instance Co-ordinator: Doureige Jurdi
Class requirements
LectureWeek: 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.
TutorialWeek: 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 element | Comments | % | ILO* |
|---|---|---|---|
| Mid Semester Exam (1.5 h) | 35 | 01, 02, 03, 04, 05 | |
| One 3.0-hour final examination | Hurdle 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 assessment | 15 | 01, 02, 03, 04, 05 |