Unit information: Bank Management and Risk Management in 2020/21

Unit name	Bank Management and Risk Management
Unit code	EFIMM0052
Credit points	15
Level of study	M/7
Teaching block(s)	Teaching Block 2 (weeks 13 - 24)
Unit director	Dr. Horvath
Open unit status	Not open
Pre-requisites	None
Co-requisites	Specifically for students studying on the MSc in Economics and Finance - if taking this unit, you can not take: EFIMM0006 - Banking OR EFIMM0054 - Principles of Financial Intermediation OR EFIMM0053 - Banking Regulation and Financial Stability
School/department	School of Accounting and Finance - Business School
Faculty	Faculty of Social Sciences and Law

Description including Unit Aims

This unit introduces students to the management decisions banks make. The unit will focus primarily on assessing and managing bank risks (e.g. credit risk, market risk, etc.), however, other business decisions, such as the type of lending a bank engages in, or its geographic and organizational structure, will also be addressed. The unit covers

• Asset-liability management (including liquidity and interest rate risk management)
• Evaluating bank performance (e.g. balance sheet ratios)
• Capital allocation
• Securitization
• The organizational structure of a bank
• Product diversification and geographic expansion
• Measuring risk (measuring probability of default, loss given default, dependencies, market risk)
• Risk management tools (e.g. use of derivatives, risk limits)

Intended Learning Outcomes

On completion of this unit students will be able to:

1. Demonstrate understanding of the trade-offs banks face when making management decisions;
2. Demonstrate understanding of and critically evaluate the main concepts used to evaluate a bank’s performance;
3. Assess the risks banks typically face;
4. Demonstrate understanding of and use credit, market and operational risk models;
5. Apply various risk management tools.

Teaching Information

Teaching will be delivered through a combination of synchronous and asynchronous sessions including lectures, tutorials, drop-in sessions, discussion boards and other online learning opportunities

Assessment Information

Reading and References

The textbooks for this unit are:

• Bessis, J. (2015). Risk Management in Banking, Wiley (4th edition)
• Saunders, A.; Cornett, M. (2013). A Risk Management Approach, McGraw-Hill (8th edition)
• Rose, P.S. and Hudgins, S.C. (2010). Bank Management and Financial Services. 8th edition, McGraw-Hill (International edition)
• Hull, J. (2015). Risk Management and Financial Institutions, Wiley (4th Edition)