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FIN204 Fundamentals of Risk

This subject introduces financial risks and the importance of risk management in today’s financial market place. It discusses legal and reputation risk, interest rate risk, funding and liquidity risks as well as the risks associated with margins and spreads. This subject also examines enterprise risk management, asset liability management, funds transfer pricing, and economic and regulatory capital.

Using industry reports and examples, individuals will explore the integration of these risk management methods into business practices and governance.

For more information, please refer to the subject outline.

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  • Learning outcomes

    • On successful completion of this subject, individuals should be able to:

      1. Analyse the management of different types of risk in a financial institution and their integration into business management and governance.
      2. Analyse asset and liability management and its integration into business management and governance.
      3. Analyse the management of economic and regulatory capital and their integration into business management and governance.
      4. Analyse the management of funds transfer pricing and its integration into business management and governance.
      5. Analyse the integration of the management of different types of individual risks into enterprise risk management.
  • Subject content
    • Topic Title
      Topic 1 Introduction to risk and its management
      Topic 2 Legal/regulatory and reputational risk
      Topic 3 Interest rate risk
      Topic 4 Funding and liquidity risk
      Topic 5 Managing margins and spreads
      Topic 6 Enterprise risk management
      Topic 7 Asset and liability management
      Topic 8 Funds transfer pricing
      Topic 9 Economic and regulatory capital

  • Duration

    • The duration of this subject is one study period (12 weeks).

  • Assessment
  • Assumed knowledge

    • Whilst there are no prerequisites for this subject, Kaplan assumes that individuals have completed FIN201 Quantitative Applications in Finance or understand the content covered in this subject, prior to undertaking FIN204 Fundamentals of Risk.

  • Prerequisites

    • There are no prerequisites for this subject.

      However, individuals should review the ‘Assumed Knowledge’ tab to understand the prior knowledge Kaplan advises they should hold before enrolling in this subject.

  • Course transition subject equivalence

    • Individuals may not be required to complete this subject if they have transitioned from a SIA/Finsia/Kaplan course and have completed the following subjects:

      • FIN114 Risk Management for Finance Sector Enterprises
  • Reading list

    • There is no prescribed text for this subject.

      Individuals are provided with key readings and access to Kaplan’s online databases. Individuals are encouraged to research and read widely on the topic.