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. Risk management for interest rate risk
5. Risk management for credit risk
6. Corporate risk management in practice

Learning outcomes

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

• Demonstrate a systematic understanding of relevant knowledge about derivatives, corporate risk management, and how they are managed using derivatives.
• Demonstrate an understanding of the corporate risk management in practice.
• Demonstrate understanding of appropriate techniques sufficient to allow detailed investigation into relevant derivatives and corporate risk management issues
• Demonstrate a critical awareness of current issues in corporate risk management which is informed by leading edge research and practice in the field.

Indicative reading list

Hull John, Options, Futures and Other Derivatives, 11th edition, Pearson 2021
Hull John, Risk Management and Financial Institutions, 6th edition, Wiley 2023
Rene Stulz, Risk Management and Derivatives, 2002.

Subject specific skills

Identify the key risk factors of corporations.
Design risk management strategies for corporations using derivatives.
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.

Transferable skills

Written communication and numeracy