OPERATIONAL RISK MANAGEMENT

FIN5ORM

2020

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 (Pre 2022)

Credit points: 15

Subject Co-ordinator: Doureige Jurdi

Available to Study Abroad/Exchange Students: Yes

Subject year level: Year Level 5 - Masters

Exchange Students: No

Available as Elective: No

Learning Activities: N/A

Capstone subject: No

Subject particulars

Subject rules

Prerequisites: N/A

Co-requisites: FIN5EME

Incompatible subjects: N/A

Equivalent subjects: N/A

Quota Management Strategy: N/A

Quota-conditions or rules: N/A

Special conditions: N/A

Minimum credit point requirement: N/A

Assumed knowledge: N/A

Career Ready

Career-focused: No

Work-based learning: No

Self sourced or Uni sourced: N/A

Entire subject or partial subject: N/A

Total hours/days required: N/A

Location of WBL activity (region): N/A

WBL addtional requirements: N/A

Graduate capabilities & intended learning outcomes

Graduate Capabilities

COMMUNICATION - Communicating and Influencing

DISCIPLINE KNOWLEDGE AND SKILLS

INQUIRY AND ANALYSIS - Creativity and Innovation

INQUIRY AND ANALYSIS - Critical Thinking and Problem Solving

INQUIRY AND ANALYSIS - Research and Evidence-Based Inquiry

PERSONAL AND PROFESSIONAL - Adaptability and Self-Management

PERSONAL AND PROFESSIONAL - Ethical and Social Responsibility

PERSONAL AND PROFESSIONAL - Leadership and Teamwork

Intended Learning Outcomes

01. Demonstrate the practical skills of a risk manager to define strategies to identify and manage the exposure of a financial services firm to operational risk

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.

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.

04. Demonstrate with emerging prudential and regulatory changes that impact managing operational risk within the banking industry.

05. Demonstrate the skills required to work effectively as a member of a risk management team and present a report advising on the strategies to manage operational risk.

Melbourne (Bundoora), 2020, Semester 2, Day

Overview

Online enrolment: Yes

Maximum enrolment size: N/A

Enrolment information: N/A

Subject Instance Co-ordinator: Doureige Jurdi

Class requirements

LectureWeek: 31 - 43
One 2.00 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 1.00 hour tutorial per week on weekdays during the day from week 31 to week 43 and delivered via face-to-face.

Assessments

Assessment element	Comments	Category	Contribution	Hurdle	%	ILO*
One hour formative examinationEquivalent to 1000 words	N/A	N/A	N/A	No	10	SILO1, SILO2, SILO3, SILO4, SILO5
Two 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.	N/A	N/A	N/A	Yes	50	SILO1, SILO2, SILO3, SILO4, SILO5
Group assignment and presentation(Group written report graded for 20% and presentation and teamwork individually graded for 10%) Equivalent to 2000 words per student	N/A	N/A	N/A	No	30	SILO1, SILO2, SILO3, SILO4, SILO5
Online and/or in-class assessment tasksEquivalent to 500 words	N/A	N/A	N/A	No	10	SILO1, SILO2, SILO3, SILO4, SILO5