FIN304 Applied Risk Management

This subject focuses on the application of risk management within organisations. It examines the various tools, techniques and processes for managing financial risks including ‘market risk and credit risk’, and operational risk. The common types of market risk evaluated in this subject include interest rates risk, spot risk, forward risk, options risk, and liquidity risk. It also examines the range of credit products and derivatives used in managing credit exposures as well as the issues that arise in assessing, managing and monitoring operational risk.

Students perform calculations and review real-world as well as fictitious case studies based on mock institutions to apply their learning in this subject.

For more information, please refer to the subject outline.

  • Learning outcomes
    • On successful completion of this subject, students should be able to:

      1. Analyse the risks and the need for risk management by an organisation.
      2. Critically assess the tools, techniques and processes that can be used in managing the various market risks to which an organisation may be exposed.
      3. Critically analyse the tools, techniques and processes for managing liquidity risk within an organisation.
      4. Evaluate financial products and derivatives to hedge credit exposures.
      5. Adapt risk management frameworks to manage a financial institution’s operational risk.
  • Subject content
    • Topic Title
      Topic 1 Introduction to applied risk management
      Topic 2 Managing interest rate risk
      Topic 3 Managing spot risk
      Topic 4 Managing forward risk
      Topic 5 Managing options risk
      Topic 6 Managing liquidity risk
      Topic 7 Credit products and their risks
      Topic 8 Credit derivatives and their role in credit risk management
      Topic 9 Credit risk portfolio management
      Topic 10 Managing operational risk

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

  • Assessment
  • 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.

  • Assumed knowledge
    • Whilst there are no prerequisites for this subject, Kaplan assumes that individuals have completed FIN254 Risk Management Frameworks, prior to undertaking FIN304 Applied Risk Management.

  • 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:

      • there are no equivalences for this subject.
  • 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.