AF6037 - Risk in Financial Insitutions II

What will I learn on this module?

In this module you will focus on the specific area of treasury risk arising from interest rate and foreign exchange rate risk. You will also explore the ever-changing world of operational risk within financial institutions. You will investigate how the risks faced by financial institutions are linked via systemic risk and learn which institutions may be more susceptible to shocks. You will also learn how to measure and manage aspects of these banking risks with the help of case studies set within banking and finance institutions. Further, a key aspect of the module is to determine why an effective fraud risk assessment framework is essential to financial institutions to avoid financial Loss and reputational damage. Prominent real-life financial disasters will be examined to demonstrate how these issues can impact upon banking and financial institutions. The module will cover topics such as:
• Interest rate risk: the level and movement of interest rates; term structure theory; sources of interest rate risk to the banking book; measurement models (repricing gap, maturity and duration models); asset and liability management; Regulatory requirements.
• The impact of foreign exchange rate on financial institutions.
• Operational risk: sources; measurement models; operational risk management policies and procedure; regulatory implications.
• How to develop a Fraud risk assessment and execute it within the global and digital banking environment.
• The concept of systemic risk within the financial system and the macroprudential regulations developed to mitigate such a risk.

How will I learn on this module?

The module will be taught through lectures (24 hours) seminars (12 hours) tutor directed (82 hours) and independent study (82 hours). The lectures are the primary medium used to deliver the basic knowledge 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. It will involve individual and group work, presentations and discussion which will develop discussion and analytical skills. The seminars will provide an opportunity for you and the teaching team to interact and discuss the materials with other students. The emphasis will be on high levels of participation both individually and within small groups.
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 and preparing for presentations. 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.

How will I be supported academically on this module?

You will be supported by a teaching and learning plan (TLP), which outlines the pattern and content of formal sessions, together with tutor-directed study and independent reading. You will be supported throughout by the module teaching team who are available to answer your questions either in person or by email/telephone. 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 and regulatory reports/articles and academic journal articles relevant to your studies.

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:
(Reading List service online guide for academic staff this containing contact details for the Reading List team –

What will I be expected to achieve?

Knowledge & Understanding (KU):
• Develop a knowledge and understanding of interest rate, foreign exchange, operational and systemic risk. (MLO1)
• Critically evaluate effective fraud assessment frameworks to prevent fraud within financial institutions. (MLO2)

Intellectual / Professional skills & abilities (IPSA):
• Develop quantitative and qualitative evaluation skills whilst measuring and managing the risks covered in this module. (MLO3)
• Develop an ability to apply regulatory requirements to real-life banking and financial institution scenarios (MLO4)

Personal Values Attributes (PVA):
• Develop a cultural and ethical awareness of the impact of risk management systems on organisational decision-making and their antecedents' effects on financial institutions. (MLO5)

How will I be assessed?

Formative Assessment:
Formative assessment will take place through individual and group work on directed questions/case studies to take place at the end of each substantive area covered in the module. You will discuss these substantive areas in the workshops after each lecture so that you can obtain direct feedback on the module content and the assigned tasks. You should be aware that formative feedback can and will occur in any communication with the academic tutor.

Summative Assessment:
The module will be assessed by one element:
• 3,000 words assignment (100%) (MLO1, MLO2, MLO3, MLO4, MLO5)





Module abstract

The banking and financial services industry operates in a risk-structured environment. Financial institutions are required to measure, manage and transfer risk under the constant eye of the financial regulators. This module focuses on the specific area of treasury risk arising from interest rate and foreign exchange rate risk. You’ll also explore the dynamic world of operational risk and fraud risk assessment within financial institutions. Finally, you’ll investigate how the risks of financial institutions risk are linked via systemic risk and which institutions may be more susceptible to shocks.

Course info

UCAS Code N395

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 2024 or September 2025

Fee Information

Module Information

All information is accurate at the time of sharing. 

Full time Courses are primarily delivered via on-campus face to face learning but could include elements of online learning. Most courses run as planned and as promoted on our website and via our marketing materials, but if there are any substantial changes (as determined by the Competition and Markets Authority) to a course or there is the potential that course may be withdrawn, we will notify all affected applicants as soon as possible with advice and guidance regarding their options. It is also important to be aware that optional modules listed on course pages may be subject to change depending on uptake numbers each year.  

Contact time is subject to increase or decrease in line with possible restrictions imposed by the government or the University in the interest of maintaining the health and safety and wellbeing of students, staff, and visitors if this is deemed necessary in future.


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