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Financial Risk Management I (MAFE308IU)

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Recent Files

  • Final Exam_Financial_Risk_Management I - mock exam.pdf   0k - 17 May 2016, 00:39 by Diep Ho (v1)
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  • MAFE308IU Assignment.docx   0k - 18 Apr 2016, 04:36 by Diep Ho (v1)
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COURSE DETAILS:

Lecturer: Dr. Ho, Diep, PhD [email protected] (Tel. 0946 317 379, Room A207)

Teaching Assistant: TBA

Should the students wish to meet the staff outside the consultation hours, they are advised to make appointment in advance. 

Course Aims:

Reuteurs Financial Institutions Feed

The course introduces the history and the development of the risk management within financial institutions and activities around the world to help students get an overview of the risk management industry and its development future trend in Vietnam. Then the course will introduce basic techniques in financial risk management especially identifying risk within financial institutions and methods for measuring and managing risks. Finally, the course will explore a number of cases of using financial derivatives to manage financial risk.

The issues of the financial institution industry including public policy issues, the impact of the economic environment, managing interest rate and liquidity risk, services provided, changing regulations and the vast array of current challenges facing the industry are covered in this course.

Prerequisite course:

Units of Credit:
This course is worth 3 credits. 

Teaching times and Locations:
Lecture time:  Wednesday 1:00pm-4:00pm
Venue:  B202, 3B Ly Tu Trong, Q1, HCMC

Academic Integrity:

Integrity is critical to the learning process and to all that we do here at HCMIU. A student’s responsibilities include, but are not limited to:

Attendance:
Regular and punctual attendance at lectures and seminars is expected in this course. University regulations indicate that if students attend less than eighty per cent of scheduled classes they may be refused final assessment. Exemptions may only be made on medical grounds. 

While we do not penalise occasional tardiness, a pattern of repeated unexplained late arrivals and non-attendance shall negatively impact the student's class participation grade. Understandably, job search or other obligations may occasionally conflict with class.  It is each student’s responsibility to find out from his/her classmates what has been missed during the absence.

Homework:
Homework and other assignments are expected to be completed on time. Late Assignments will not be accepted unless due to documented serious illness or family emergency.

All electronic devices must be turned off prior to the start of each class meeting.

Laptops, tablets, ipad, cell phones, smartphones and other electronic devices are a disturbance to both students and the lecturers.

Calculator:
You need a calculator for this class. A scientific calculator is good enough; you do not need to buy a financial one. As a rule, you will use spreadsheets for homework assignments, and the calculator for the simple examples in class, and, most importantly, for the exams. It is a very bad idea to wait for the last week before buying a calculator.

Study Groups:
It is highly encourage that you regularly review the readings and class notes in a study group. Don’t wait until exam week to set up such a study group. By then it’s too late. You are encouraged to work on the problem sets with your study group, but you must hand in your own answers for individual tasks.

Assessment Details:
The final grade is computed as follows:
Class Participation                          5%
Mid-Term Exam (One Hour)          30%
Written Assignment                      25%
Final Exam (Two Hours)                40%
Total                                           100%

Exam shall be semi-open book.  Each student, may bring in a calculator and one A4 cheat sheet.  Two sides of the sheet may be filled with anything the student wishes, but must be handwritten by him/her (no photocopying).

In addition, since I wish to emphasize practical skills, students shall complete an assignment that use actual data--and to reflect how most companies conduct business, students shall form groups to handle these assignments.  Groups shall comprise three to five students – no less, no more. In addition, all group members shall score their team mates on how well they have contributed to the assignment (see "Peer Group Participation Form.doc" in the file cabinet section).

Class participation is important and will be explicitly rewarded (5% of the total grade). Effectively, the class participation grade may change a grade near a cutoff.  While we do not penalise occasional tardiness, a pattern of repeated unexplained late arrivals and non-attendance shall negatively impact the class participation grade.  Understandably, job search or other obligations may occasionally conflict with class.  It is each student’s responsibility to find out from his/her classmates what has been missed during the absence.

Textbook: 
  1. Anthony Saunders and Marcia Cornett. Financial Institutions Management: A Risk Management Approach, 6e, McGraw-Hill, 2008.
  2. Frans de Weert, Bank and Insurance Capital Management, Wiley, 2011.
Course outline:

Week Topics Textbook
    1       Introduction and and Insurance Companies, Securities Firms and Investment Banks Chapters 1, 3 & 4
    2       Mutual Funds, Hedge Funds, Real Estate, Private Equity, Venture Capital, Finance Companies, Banks and Others Chapters 2, 5 & 6
    3       Market Risk I: Foreign Exchange and Interest Rate Risk I Chapters 8 & 14
    4       Market Risk I and Credit Risk I Chapters 9 & 10
    5       Mid Term Exam Chapters 11 & 12
  6-7    Off-Balance Sheet Risks and Sovereign Risk Chapters 13 & 15
  8-9       Technology, operational and Liquidity risks Chapters 16 & 17
 10-11 Liability, Liquidity, Deposit Insurance and Capital Adequacy Management Chapters 18, 19 & 20
   12       Derivatives and Hedging I Chapters 23, 24 & 25
   13       Derivatives and Hedging II Chapters 23, 24 & 25
   14    Revision
   15       Revision