FINA8008 - Financial Risk Management

Module Details

Module Code: FINA8008
Title: Financial Risk Management
Long Title: Financial Risk Management
NFQ Level: Advanced
Valid From: Semester 1 - 2016/17 ( September 2016 )
Duration: 1 Semester
Credits: 5
Field of Study: 3430 - Banking, Finance and Investment
Module Delivered in: 1 programme(s)
Module Description: This module gives the student the skills to conduct a thorough evaluation of proposed capital investments,to calculate an organizations weighted average cost of capital and to incorporate risk & uncertainty assessment in their decision making process
 
Learning Outcomes
On successful completion of this module the learner will be able to:
# Learning Outcome Description
LO1 Appraise proposed capital investments using a range of methodologies and advice on their suitability
LO2 Advise on an appropriate capital structure for the organisation based on its financing needs and targeted gearing ratio / weighted average cost of capital
LO3 Recognise, assess and risk manage foreign currency and interest rate risks
LO4 Explain & discuss the relationship between investment risk and return
LO5 Analyse financial statements across a number of industry sectors offering insight and analysis on performance & profitability
Dependencies
Module Recommendations

This is prior learning (or a practical skill) that is strongly recommended before enrolment in this module. You may enrol in this module if you have not acquired the recommended learning but you will have considerable difficulty in passing (i.e. achieving the learning outcomes of) the module. While the prior learning is expressed as named MTU module(s) it also allows for learning (in another module or modules) which is equivalent to the learning specified in the named module(s).
11594 FINA8007 Advanced Financial Management
Incompatible Modules
These are modules which have learning outcomes that are too similar to the learning outcomes of this module. You may not earn additional credit for the same learning and therefore you may not enrol in this module if you have successfully completed any modules in the incompatible list.
No incompatible modules listed
Co-requisite Modules
No Co-requisite modules listed
Requirements

This is prior learning (or a practical skill) that is mandatory before enrolment in this module is allowed. You may not enrol on this module if you have not acquired the learning specified in this section.
No requirements listed
 
Indicative Content
Investment Appraisal
Net Present Values, Internal rate of return,taxation,inflation,lease or buy, asset replacement, capital rationing
Capital Structure
Gearing Structure, Modigliani & Miller, Weighted Average cost of capital , cost of equity, cost of debt, CAPM and dividend growth model
Risk management
Foreign currency risk, translation, transaction, matching, leading & lagging, forward contracts, hedging, synthetic hedges, Interest rate options
Risk & return
Portfolio theory,Systematic & unsystematic risk, Beta Factors,probabilities,decision trees, sensitivity analysis
Financial statement analysis
Ratios, Profitability, Liquidity, Growth, Earnings, Efficiency,Investment
Module Content & Assessment
Assessment Breakdown%
Coursework30.00%
End of Module Formal Examination70.00%

Assessments

Coursework
Assessment Type Presentation % of Total Mark 30
Timing Week 8 Learning Outcomes 1,2
Assessment Description
In class presentation (Brief given Week 5) for example 'For a multinational of your choice outline the capital structure and describe the elements of the Weighted Average Cost of Capital'
End of Module Formal Examination
Assessment Type Formal Exam % of Total Mark 70
Timing End-of-Semester Learning Outcomes 1,2,3,4,5
Assessment Description
End-of-Semester Final Examination
Reassessment Requirement
Repeat examination
Reassessment of this module will consist of a repeat examination. It is possible that there will also be a requirement to be reassessed in a coursework element.

The University reserves the right to alter the nature and timings of assessment

 

Module Workload

Workload: Full Time
Workload Type Contact Type Workload Description Frequency Average Weekly Learner Workload Hours
Lecture Contact Theory Every Week 4.00 4
Independent & Directed Learning (Non-contact) Non Contact Study Every Week 3.00 3
Total Hours 7.00
Total Weekly Learner Workload 7.00
Total Weekly Contact Hours 4.00
Workload: Part Time
Workload Type Contact Type Workload Description Frequency Average Weekly Learner Workload Hours
Lecture Contact Theory Every Week 2.00 2
Independent & Directed Learning (Non-contact) Non Contact Study Every Week 5.00 5
Total Hours 7.00
Total Weekly Learner Workload 7.00
Total Weekly Contact Hours 2.00
 
Module Resources
Recommended Book Resources
  • Chartered Accountants Ireland. (2014), Finance Theory and Practice, Third. Chartered Accountants Ireland, Dublin, [ISBN: 9781908199485].
Supplementary Book Resources
  • Lawrence Cunningham. (2001), The Essays of Warren Buffett:Essays for Corporate America, 1st. Carolina Academic Press, United States, [ISBN: [ISBN: 10:0-9664461-1-9]].
  • Brealey , Myers. (2008), Principles of Corporate Finance, 8th Ed. McGraw-Hill, London, [ISBN: [ISBN: 10: 0073130826].
Supplementary Article/Paper Resources
  • Myers, S.C.. (1999), The Search for Optimal Capital Structure, The Revolution in Corporate Finance, 2nd Edition.
Other Resources
 
Module Delivered in
Programme Code Programme Semester Delivery
CR_BACCT_8 Bachelor of Business (Honours) in Accounting 8 Mandatory