AF6007 - Banking Risk 2

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What will I learn on this module?

In this module, you will examine the interest rate, liquidity and operational risks face by banks and financial institutions. You will also learn the measurement and management aspects of these banking risks with the help of case studies within the banking and finance institutions. Further, a key aspect of the module is to determine why an effective fraud risk assessment framework is essential to the banking and financial institutions. You will be developing and communicating an effective fraud risk assessment framework. Prominent real life financial disasters would also be examined to demonstrate how these issues can impact upon banking and financial institutions. The module will cover:
• Interest rate risk- the level and movement of interest rates, the sources of interest rate risk, the risk and term structure of interest rates.
• Interest rate risk measurement models- repricing gap, maturity and duration models. Regulatory requirements and Asset-Liability Management.
• Liquidity risk- sources, measurement models. The Basel 3 regulations on liquidity risk management.
• Operational risk- sources, measurement models. Regulatory implications and operational risk management.
• Fraud risk assessment and execution. Managing fraud risk and misconduct in global and digital banking environment.

How will I learn on this module?

You will be supported by a teaching and learning plan (TLP), which outlines the formal sessions, together with tutor-directed study and independent reading. The module will be taught through lectures (24 hours) and seminars (12 hours). The lectures are the primary medium used to deliver the basic knowledge input and subject material required to enable students to meet the module learning outcomes. Lectures will be research-led with a significant practical component attached to them. Seminars will be used to develop understanding and knowledge by reinforcing subject material and exploring relevant issues with material distributed in advance. Seminars will involve individual and group work, presentations and discussion and will also be used to develop students' skills of discussion and analysis. The seminars will provide an opportunity for you and the teaching team to interact and discuss the materials with other students in diverse contexts from around the world. The emphasis will be on high levels of participation both individually and within small groups or teams. You can therefore expect the reflective-practitioner approach to learning to be embedded in the online workshops by undertaking activities that will allow you to apply the key concepts and principles to ‘real-life’ situations (i.e., actual cases), and critically analyse and make recommendations for policy prevention.

The module will involve both directed and independent learning. Directed learning plays a key part in the achievement of the module learning outcomes and provides an opportunity for self-assessment of your progress throughout the semester. Directed learning may include a range of activities including pre-reading, preparation for seminar activity, preparing for presentations etc. Independent learning is learning which you identify by pursuing areas of interest that provides deeper or broader knowledge of the subject, through a range of learning activities that might include reading, reflection and research. If you study the module on a distance learning programme you will engage in similar activities provided through the University eLearning portal, where contact with the tutors and other students will be facilitated through email and/or on-line discussion forums.


Formative assessment will take place through individual and group activities, assignment discussions, case study activities and theory/practice related discussions. The module will be supported by the use of e-learning portal. The assignment requirements will expect you to engage with a wide range of scholarly sources to evaluate their effectiveness and currency and subsequently communicate them in written format. This will be an individual written assignment covering the learning outcomes of the module. An assignment brief will cover the requirements as well as outlining the word limits and guidance on referencing that must be adhered to. Critical reflection on knowledge, experience and practice underpins the learning and teaching philosophy along with the explicit development of competence.

How will I be supported academically on this module?

You will be supported throughout by the module teaching team who are available to answer your questions either in person or by email/telephone. You are encouraged to contact a member of the tutor team for additional support and guidance as necessary throughout the course. Your module is supported by the e-learning portal, which includes lecture and seminar materials as well as additional material for independent study. Your lectures will be recorded and uploaded to the e-learning portal which you will be able to access to consolidate your knowledge and develop understanding. Your electronic reading list includes core material to support your lectures/seminars and a comprehensive range of professional accounting reports/articles and academic journal articles relevant to your studies. Further, if you study on a distance learning programme, such activities will be facilitated electronically via the University eLearning Portal. This will include materials enhanced using technology which enables the tutors to provide supportive audio commentary.

What will I be expected to read on this module?

All modules at Northumbria include a range of reading materials that students are expected to engage with. The reading list for this module can be found at: http://readinglists.northumbria.ac.uk
(Reading List service online guide for academic staff this containing contact details for the Reading List team – http://library.northumbria.ac.uk/readinglists)

What will I be expected to achieve?

At the end of the module, you will have:
Knowledge & Understanding:
• Develop knowledge and understanding of interest rate, liquidity, and operational risks. [MLO1]
• Critically evaluate and develop an effective fraud assessment framework to prevent the fraud associated with the banking risk in the banking and finance institutions.[MLO2]
Intellectual / Professional skills & abilities:
• You will develop the quantitative as well as qualitative evaluation while measuring and managing the interest rate, liquidity and operational risks. [MLO3]

Personal Values Attributes:
• You will become culturally and ethically aware of the impact of risk management systems on organisational decision-making and their antecedents' effects on the banking and financial institutions. [MLO4]

How will I be assessed?

Formative Assessment:
Formative assessment will take place through individual and group work on directed questions/case study at the end of each substantive area covered in the module. There will be a discussion of these substantive areas in the seminars after each lecture so that you can obtain direct feedback on any questions you may have on the module content and the assigned tasks.

Summative Assessment:
The module will be assessed by 3,000 words assignment (100%) at the end of the semester during assessment period. [MLO1,2,3,4]

Pre-requisite(s)

None

Co-requisite(s)

None

Module abstract

Risk Management is fundamental to banks and financial institutions. This module examines and evaluates the interest rate, liquidity and operational risks face faced by banking and financial institutions. In doing so, it examines the sources of these risks and how they may be measured and managed using models. Prominent real life financial disasters are examined to demonstrate how these issues can impact upon the banking and financial industry. Further, a key aspect of the module is to determine why an effective fraud risk assessment framework is essential to the banking and financial institutions. An effective fraud risk assessment framework would be developed as part of the module. The module is delivered through lectures and seminars. The seminars are used to reinforce both lectures and directed learning. As such, the seminars will involve individual and group work, presentations and discussion and will also be used to develop students’ skills of discussion and analysis. The module is assessed by a 3,000 word assignment.

Course info

UCAS Code N390

Credits 20

Level of Study Undergraduate

Mode of Study 3 years full-time or 4 years with a placement (sandwich)/study abroad

Department Newcastle Business School

Location City Campus, Northumbria University

City Newcastle

Start September 2020

Fee Information

Module Information

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