FINA8008 - Financial Risk Management

Title:Financial Risk Management
Long Title:Financial Risk Management
Module Code:FINA8008
 
Duration:1 Semester
Credits: 5
NFQ Level:Advanced
Field of Study: Banking, Finance and Investment
Valid From: Semester 1 - 2016/17 ( September 2016 )
Module Delivered in 1 programme(s)
Module Coordinator: Claire OSullivan Rochford
Module Author: COLM BARRY-MURPHY
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:
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
Pre-requisite learning
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
 

Module Content & Assessment

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
Assessment Breakdown%
Course Work30.00%
End of Module Formal Examination70.00%
Course Work
Assessment Type Assessment Description Outcome addressed % of total Assessment Date
Presentation 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' 1,2 30.0 Week 8
End of Module Formal Examination
Assessment Type Assessment Description Outcome addressed % of total Assessment Date
Formal Exam End-of-Semester Final Examination 1,2,3,4,5 70.0 End-of-Semester
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 institute reserves the right to alter the nature and timings of assessment

 

Module Workload

Workload: Full Time
Workload Type Workload Description Hours Frequency Average Weekly Learner Workload
Lecture Theory 4.0 Every Week 4.00
Independent & Directed Learning (Non-contact) Study 3.0 Every Week 3.00
Total Hours 7.00
Total Weekly Learner Workload 7.00
Total Weekly Contact Hours 4.00
Workload: Part Time
Workload Type Workload Description Hours Frequency Average Weekly Learner Workload
Lecture Theory 2.0 Every Week 2.00
Independent & Directed Learning (Non-contact) Study 5.0 Every Week 5.00
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 Ed., Chartered Accountants Ireland Dublin [ISBN: 9781908199485]
Supplementary Book Resources
  • Lawrence Cunningham 2001, The Essays of Warren Buffett:Essays for Corporate America, 1st Ed., Carolina Academic Press United States [ISBN: [ISBN: 10:0-9664461-1-9]]
  • Brealey , Myers 2008, Principles of Corporate Finance, 8th Ed 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