Synopsisurse structure and requirements

Topics include managing interest rate risk; foreign exchange risk; liquidity risk and the cash flow cycle; credit risk; capital risk; debt and investment risk and managing the risk of derivative products.

Unit learning outcomes urse structure and requirements

On successful completion of this unit, you should be able to:

1.   examine regulatory measures taken by Reserve Bank of Australia (RBA), Australian Prudential Regulation Authority (APRA) and Bank for International Settlements (BIS) for improving bank risk management

2.   develop critical skills in applying the BIS standardised and internal capital models utilised for assessing banks’ regulatory risk

3.   reconcile theory and bank practice in the areas of interest rate risk, market risk, loan risk, loan portfolio risk, foreign exchange risk, liquidity risk and risks associated with financial derivatives

4.   demonstrate the acquisition of a comprehensive understanding of the topics covered in BFC5280.

Workload requirements urse structure and requirements

Minimum total expected workload to achieve the learning outcomes for this unit is 144 hours per semester typically comprising  a  mixture  of scheduled  learning  activities  and  independent  study.  Independent  study  may  include associated readings, assessment and preparation for scheduled activities. The unit requires on average three/four hours of scheduled activities per week. Scheduled activities may include a combination of teacher directed learning, peer directed learning and online engagement.

Prerequisites and Prohibitions e structure and requirements

Prerequisites: None

Prohibitions: None

Text Book and Materials rse structure and requirements

Prescribed text and readings

Saunders, A., Cornett, M. M., and Erhemjamts, O. (2021). Financial institutions management: A risk management approach (10th ed.). New York: McGraw-Hill Irwin.

Additional references:

Saunders, A., and Cornett, M. M. (2018). Financial institutions management: A risk management approach (9th ed.). New York: McGraw-Hill Irwin.

Lange, H., Saunders, A., and Cornett, M. M. (2015). Financial institutions management: A risk management approach (4th ed.). New York: McGraw-Hill Irwin.

Hull, J. C. (2010). Risk management and financial institutions (2nd edition), Frenchs Forest, NSW: Pearson Education Australia

Assessment Summary structure and requirements

Assessment Summary: Within semester assessment: 100%.

Assessment Task	Weighting	Due Dates/Week	Learning  Outcomes Assessed
1st Online Quiz	20%	Week 4 (5 :00 pm 18th  August- 4:30 pm 21st August)	1, 2,3
Mid Semester Test (MST)	30%	Teaching Week 6 – Please refer to the University timetable for details.	1, 2, 3,4
2nd Online Quiz	20%	Week 10 (5 :00 pm 6th October- 4:30 pm 9th October)	1, 2,3
Final Take-home Assignment/Case	30%	Released: During Week 11 (TBA) Due: Friday 11:55 pm (Melbourne time), Week 12	1, 2, 3,4

Assessment tasks

Assessment task title: Mid Semester Test (MST)

Due Date: Teaching Week 6 - Please refer to the University Timetable for details

Weighting/Value: 30%

Details of Task: Details to be announced closer to the date. The test will be administered via Moodle Quiz. Duration: 1 hour. Students should complete the assessment task within the allocated time.

Materials examinable: All materials and review questions from Teaching Weeks 1 through 4 (inclusive) are examinable.

Release date: The mid-semester test will be available to access on your own personal electronic device via the unit

Moodle site. Additional information about how to access the mid-semester test will be provided to you via a Moodle announcement closer to the date.

Word limit:  Not applicable

Presentation requirements: The mid-semester test is answered on your own personal electronic device. Estimated return date: End of Teaching Week 7 via Grades in Moodle

Criteria for marking: The questions will be graded in accordance with the instructions provided on the exam paper. Negative marks are not awarded for wrong answers.

Learning objectives assessed: This assessment task is designed to verify your achievement of learning objectives 1, 2, 3, and 4.

Submission details: The mid-semester test is answered on your own personal electronic device.

Penalties for late lodgement: Students should complete the assessment task within the allocated time. Assessment coversheet: Not applicable

Additional information: The mid-semester test is centrally organised. Please refer to the University Timetable for details.

Applications for special consideration for a within semester assessment task must be made by completing the form found at https://www.monash.edu/exams/changes/special-consideration. Work commitments are not grounds for

special consideration.

The special consideration application form and certified supporting documentation must be submitted for

consideration no later than two (2) University working days after the date of the mid semester test. Successful applications for special consideration will sit an equivalent make-up test in Week 7.

Students must not assume the outcome of an application for special consideration.

Assessment task title:  TWO online quizzes

Details of Task: This is an assessment task for individual students.

The online quizzes should be completed through Moodle in the indicated weeks. These quizzes are designed to aid your study and test your learning of key contents from the previous lectures. Students can only attempt the quiz

once and must attempt the quiz the first time it is opened. Students have a maximum of 50 minutes to complete the quiz upon opening. There will be NO mock/practice quiz offered.

Release date/Due Date:

1st Quiz—Starts on 18th August (5:00PM) in teaching Week 4 and due by 4:30 PM Monday in teaching week 5.

Weighting/Value: 20%

Materials examinable: All materials and review questions from Teaching Weeks 1, 2, and 3 are examinable.

2nd Quiz—Starts on 6th  October (5:00PM) in teaching Week 10 and due by 4:30 PM Monday in teaching week 11.

Weighting/Value: 20%

Materials examinable: All materials and review questions from Teaching Weeks 5, 7, 8, and 9 are examinable.

No additional consideration will be given to students who fail to submit a quiz due to any reason, including technology failure.

Word limit: Not applicable.

Presentation requirements: Not applicable.

Estimated return date: Your marks will be available after the close of the quiz each week.

Criteria for marking: Students will be marked on their ability to correctly answer the questions each week. All questions will relate directly to the Key Learning Objectives from the relevant lectures.

Learning objectives assessed: This assessment task is designed to assist your achievement learning objectives 1, 2, and 3.

Submission details: Quiz to be attempted via Moodle course page.

Assessment coversheet: Not applicable.

Additional information: Not applicable.

Final Take Home Assessment/Case

Assessment task title: Take Home Assessment/Case

Weighting: 30%

Date/Week Released: Assignment/Case releases during teaching Week 11

Due Date: By 11.55 PM Friday in teaching Week 12.

Details of Task: Details will be provided closer to the release date of the assessment.

Criteria for marking: Overall, the work submitted for assessment will be graded in accord with the faculty approved Grading Descriptors - http://www.buseco.monash.edu.au/esg/agu/policies /grades-table.html

Learning objectives assessed: This assessment task is designed to assist your achievement learning objectives 1, 2, 3, and 4

Submission: You must submit the electronic copy through Moodle.

Academic integrity: In order to ensure the academic integrity of your submission and to deter others from copying your work, your submission may be processed by text-matching software such as Turnitin. For additional

information, the University's Student Academic Integrity Policy can be found at :

http://www.policy.monash.edu/policy-bank/academic/education/conduct/studentacademic- integrity-policy.html

Penalties for late lodgement: Students must apply for special consideration if they fail to submit the assignment by the due date. The chief examiner must receive applications for special consideration within 48 hours after the due

date. More information can be found in the following link: https://www.monash.edu/exams/changes /special- consideration

Unless a special consideration has been granted, a marking penalty will be imposed for the assessment task that has  been submitted past the due date. After the due date, students who will submit the assessment task will receive a late submission penalty of 10 percent of the available marks in the task. A further penalty of 10 percent of the available   marks will be applied for each additional day (24-hour period), or part thereof, the assessment task is overdue.

Tasks submitted more than seven days after the due date will receive a mark of zero for that task. Students may not

receive feedback on any assessments that receive a mark of zero due to a late submission penalty

Assessment coversheet: You do not need any cover sheet.

Materials examinable: All source materials, which are specified on the unit's Moodle site, are examinable. This includes prescribed reading and other source materials cited in lectures, tutorials and assessment tasks.

Criteria for assessment: Overall, the work submitted for assessment will be graded in accordance with the table showing examples of grades and corresponding achievement levels published in the Q Manual.