HBB 2403: FINANCIAL RISK MANAGEMENT (42 CREDIT HOURS)

Prerequisite – HBC 2223 Investment Analysis and Portfolio Management

Course Purpose
Equip the students with tools and concepts of managing financial risks facing organisations and solving risk problems.

Course Objectives
At the end of this course students should be able to:
1. Identify the various risks facing financial and other institutions
2. Identify and evaluate the various tools of financial risk management

Course Outline
1. Evolution of risk management products:
2. volatility of foreign exchange, commodity prices and of interest rates.
3. Risk management processes; forwards, futures, swaps, options and hybrid securities.
4. The state of risk management market: explore derivatives in equity, interest rates, commodity prices
and foreign exchange.
5. Increasing firm’s value through financial risk management, firms’ exposure to price risk, managing
price risk.
6. Impact of financial risk management.

Teaching Methodologies
In order to attain the learning objectives stated above the following learning and teaching methods will be used:
1. Lectures,
2. Group discussions and group work.

Instructional Materials:
These will include: Tablet, Smart board, LCD projector & Computers, Flipcharts, televisions, videos

Course Evaluation
CATs/Assignment/Presentation 30 %
Final Examination 70 %
Total 100%

Course Text books

Crouhy, M., Galai, D. and Mark, R (2009), “The Essentials of Risk Management: The Definitive Guide for the Non-
risk Professional”, 5th Edition, Pearson Education.
Ross, S., Westerfield, J. and Jordan, F. (2008). Corporate Finance, 8th Edition McGraw-Hill, Irwin.
Kohn, M. (2009). Legal and Regulatory Aspects of banking, 2nd edition, MacMillan.

Reference Text books

Reilly, F.K. and Brown, C.K. (2009). Investment Analysis and Portfolio Management, 9Th edition, Thompson,
Southampton.
Jeffery, M. (2004). Portfolio Management, 5th Ed.
Kohn, M (2009), “Principles and Practices of Banking”, 2nd Edition, Macmillan Publishers

Course Journals
Journal of Finance
Journal of Accounting and Finance
Journal of Banking and Finance

Reference Journals
Journal of Investment and Portfolio Management.
Journal of Finance & Economics
Journal of Financial & Quantitative Analysis