Risk Strategies

Subject FNCE40005 (2011)

Note: This is an archived Handbook entry from 2011.

Credit Points: 12.50
Level: 4 (Undergraduate)
Dates & Locations:

This subject has the following teaching availabilities in 2011:

Semester 2, Parkville - Taught on campus.
Pre-teaching Period Start not applicable
Teaching Period not applicable
Assessment Period End not applicable
Last date to Self-Enrol not applicable
Census Date not applicable
Last date to Withdraw without fail not applicable


Timetable can be viewed here. For information about these dates, click here.
Time Commitment: Contact Hours: One three-hour seminar per week
Total Time Commitment: Not available
Prerequisites:

FNCE30002 Corporate Finance.
Corequisites: None
Recommended Background Knowledge: Please refer to Prerequisites and Corequisites.
Non Allowed Subjects: None
Core Participation Requirements:

For the purposes of considering requests for Reasonable Adjustments under the Disability Standards for Education (Cwth 2005), and Students Experiencing Academic Disadvantage Policy, academic requirements for this subject are articulated in the Subject Description, Subject Objectives, Generic Skills and Assessment Requirements for this entry.

The University is dedicated to provide support to those with special requirements. Further details on the disability support scheme can be found at the Disability Liaison Unit website: http://www.services.unimelb.edu.au/disability/

Coordinator

Dr Les Coleman

Contact

les.coleman@unimelb.edu.au

Subject Overview:

This subject applies modern financial techniques to the management of diversifiable risks. These techniques include hedging, real options, portfolio design, swaps and leverage; and are combined with concepts such as corporate behavioural finance and utility functions. This enables students to develop quantitative measures of diversifiable, or business, risks and manage them effectively. The aim is to provide a comprehensive theoretical understanding of the nature and sources of diversifiable risks - financial risk strategy - so that these risks can be leveraged strategically.
Objectives:
  • Understand factors that predispose organisations to operational and financial risks and hazards
  • Recognise and identify business risks
  • Apply modern techniques to the management of business risks
  • Successfully develop and apply risk management tools and solutions
  • Explain linkages between organisation risk propensity and financial outcomes.
Assessment:

A group seminar presentation (10%), individual written assignment of not more than 2000 words (20%) and three-hour end of semester exam (70%).
Prescribed Texts: You will be advised of prescribed texts by your lecturer.
Breadth Options:

This subject is not available as a breadth subject.
Fees Information: Subject EFTSL, Level, Discipline & Census Date
Generic Skills:

  • High level of development: oral communication; written communication; collaborative learning; application of theory to practice; critical thinking; receptiveness to alternative ideas.

  • Moderate level of development: problem solving; team work; interpretation and analysis; synthesis of data and other information.

  • Some level of development: statistical reasoning; evaluation of data and other information; use of computer software; accessing data and other information from a range of sources.

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