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. 

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

PrerequisitesN/A

Co-requisites FIN5EME

Incompatible subjectsN/A

Equivalent subjectsN/A

Special conditionsN/A

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

Activities:
Lectures, tutorials and examination
Related graduate capabilities and elements:
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:
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 (Speaking,Quantitative Literacy)
Literacies and Communication Skills (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.

Activities:
Lectures, tutorials and examination
Related graduate capabilities and elements:
Literacies and Communication Skills (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. 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.

Activities:
Lectures, tutorials and examination
Related graduate capabilities and elements:
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)

Subject options

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Start date between: and    Key dates

Melbourne, 2020, Semester 2, Day

Overview

Online enrolmentYes

Maximum enrolment sizeN/A

Enrolment information

Subject Instance Co-ordinatorDoureige Jurdi

Class requirements

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.

Tutorial Week: 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 elementComments% ILO*
One hour formative examinationEquivalent to 1000 words10 01, 02, 03, 04, 05
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.50 01, 02, 03, 04, 05
Group assignment and presentation(Group written report graded for 20% and presentation and teamwork individually graded for 10%) Equivalent to 2000 words per student30 01, 02, 03, 04, 05
Online and/or in-class assessment tasksEquivalent to 500 words10 01, 02, 03, 04, 05