Credit points: 15

Subject outline

Market risk is the risk of loss or gain, arising from unexpected changes in the market prices of assets, such as equity, debt and derivative securities and commodities, or changes in market rates, such as interest rates and exchange rates. In this subject you will examine how to measure the exposure of a firm or portfolio to market risk. You will learn statistical and financial foundations for the quantification of risk, compare and analyse in detail various approaches to financial risk measurement, explore applications of VAR systems from measuring to managing market risk.

SchoolLa Trobe Business School

Credit points15

Subject Co-ordinatorN/A

Available to Study Abroad/Exchange StudentsYes

Subject year levelYear Level 5 - Masters

Available as ElectiveNo

Learning ActivitiesN/A

Capstone subjectNo

Subject particulars

Subject rules

PrerequisitesBUS5SBF OR FIN5SBF


Incompatible subjectsN/A

Equivalent subjectsN/A

Quota Management StrategyN/A

Quota-conditions or rulesN/A

Special conditionsN/A

Minimum credit point requirementN/A

Assumed knowledgeN/A


Risk Management and Financial Institutions

Resource TypeBook

Resource RequirementPrescribed

AuthorJohn C. Hull, latest edition


Edition/Volumecurrent edition



Chapter/article titleN/A



Other descriptionN/A

Source locationN/A

Career Ready


Work-based learningNo

Self sourced or Uni sourcedN/A

Entire subject or partial subjectN/A

Total hours/days requiredN/A

Location of WBL activity (region)N/A

WBL addtional requirementsN/A

Graduate capabilities & intended learning outcomes

Graduate Capabilities

COMMUNICATION - Communicating and Influencing
INQUIRY AND ANALYSIS - Critical Thinking and Problem Solving
INQUIRY AND ANALYSIS - Research and Evidence-Based Inquiry

Intended Learning Outcomes

01. Apply statistical and financial theory to the quantification of risk.
02. Understand the recent revolution in financial risk management
03. Demonstrate the ability of using various approaches to financial risk management
04. Understand the applications of VAR systems, from measuring to managing market risk

Subject options

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Start date between: and    Key dates

Melbourne (Bundoora), 2020, Semester 1, Day


Online enrolmentYes

Maximum enrolment sizeN/A

Subject Instance Co-ordinatorMary Ma

Class requirements

Lecture Week: 10 - 22
One 2.00 h lecture per week on weekdays during the day from week 10 to week 22 and delivered via face-to-face.

Tutorial Week: 11 - 22
One 1.00 h tutorial per week on weekdays during the day from week 11 to week 22 and delivered via face-to-face.


Assessment elementCommentsCategoryContributionHurdle% ILO*
One hour mid-semester examination Equivalent to 1000 wordsN/AN/AN/ANo10 SILO1, SILO2, SILO3, SILO4
Two hour final examination Equivalent to 2000 wordsN/AN/AN/ANo50 SILO1, SILO2, SILO3, SILO4
Individual assignment Equivalent to 2000 wordsN/AN/AN/ANo30 SILO1, SILO2, SILO3, SILO4
Online and/or in-class formative assessment tasks Equivalent to 500 wordsN/AN/AN/ANo10 SILO1, SILO2