Risk Strategies

Subject FNCE40005 (2014)

Note: This is an archived Handbook entry from 2014.

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

This subject is not offered in 2014.

Time Commitment: Contact Hours: One three-hour seminar per week
Total Time Commitment: Not available

Admission into BH-COM and

Study Period Commencement:
Credit Points:
Semester 1, Semester 2


Recommended Background Knowledge:

Please refer to Prerequisites and Corequisites.

Non Allowed Subjects:


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/

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.

Learning Outcomes:
  • 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.
  • One 15 minute individual presentation scheduled across weeks 2 to 12 (10%)
  • Individual assignment totalling 1000 words, or equivalent, due in weeks 8 to 10 (20%)
  • A three-hour end-of-semester examination (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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