OPERATIONAL RISK MANAGEMENT

FIN5ORM

2021

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/Exchange StudentsYes

Subject year levelYear Level 5 - Masters

Available as ElectiveNo

Learning ActivitiesLectures, tutorials and examination

Capstone subjectNo

Subject particulars

Subject rules

PrerequisitesN/A

Co-requisitesFIN5EME

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

Career Ready

Career-focusedNo

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

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.

Subject options

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Start date between: and    Key dates

Melbourne (Bundoora), 2021, Semester 2, Day

Overview

Online enrolmentYes

Maximum enrolment sizeN/A

Subject Instance Co-ordinatorDoureige Jurdi

Class requirements

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

Assessments

Assessment elementCommentsCategoryContributionHurdle% ILO*

One hour formative examination Equivalent to 1000 words

N/AOther written examIndividualNo10 SILO1, SILO2, SILO3, SILO4, SILO5

Two 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.

N/ACentral examIndividualYes50 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/AAssignmentGroupNo30 SILO1, SILO2, SILO3, SILO4, SILO5

Online and/or in-class assessment tasks Equivalent to 500 words

N/AOral presentationIndividualNo10 SILO1, SILO2, SILO3, SILO4, SILO5