Introductory description

This module will provide students with a systematic understanding of relevant knowledge about derivatives, corporate risk management, and how they are managed using derivatives.

Module aims

Outline syllabus

This is an indicative module outline only to give an indication of the sort of topics that may be covered. Actual sessions held may differ.

1.Introduction to risk management and derivatives
2 Risk management using forwards and futures
3. Risk management using options
4 Greek letters.
5 Risk management using swaps and other derivatives
6 Corporate risk management in practice

Learning outcomes

By the end of the module, students should be able to:

• Demonstrate creativity in the application of knowledge, together with a practical understanding of how established techniques of research and enquiry are used to develop and interpret knowledge.
• Demonstrate a systematic understanding of relevant knowledge about derivatives, corporate risk management, and how they are managed using derivatives.
• Demonstrate a critical awareness of current issues in corporate risk management which is informed by leading edge research and practice in the field.
• Demonstrate an understanding of the corporate risk management in practice.

Indicative reading list

Hull John, Options, Futures and Other Derivatives, 6th edition, Pearson 2006
Hull John, Risk Management and Financial Institutions, 4th edition, Pearson 2015
Rene Stulz, Risk Management and Derivatives, 2002.

Subject specific skills

Apply relevant knowledge to corporate risk management.
Demonstrate an understanding of appropriate techniques sufficient to allow detailed investigation into relevant derivatives and corporate risk management issues.
Identify the key risk factors of corporations.
Design risk management strategies for corporations using derivatives.

Transferable skills

Written communciation, numeracy and team-working skills.