RMBI 5M6Z0074 2013/14

Risk Management in Banking & Insurance

2013 / 14Graeme ElginRoom 4.38Ext.3766g.elgin@mmu.ac.uk

RMBI 5M6Z0074 2013/4

Course Structure

Delivery Modes

Lectures / Super Tutorials

Tutorials

Moodle

Modes of Assessment

1. Assignment - 2,000 words(40% of total unit mark)

2. Final Examination

(60% of total unit mark)

StaffingLectures / Tutorials – Graeme ElginE-mail – g.elgin@mmu.ac.ukNBS 4.38 0161- 247- 3766

Tutorials - Joanne BambrickE-mail – j.bambrick@mmu.ac.uk

0161-247- 1016

RMBI 5M6Z0074

What is Risk Management?

“ Risk Management is a formal process that enables the identification, assessment, planning and management of risks” (2008) Merna, T. , Al-Thani, F.

RMBI 5M6Z0074

So what’s in it for me?

Ability to…

• critically appraise conceptual, organisational, regulatory and environmental perspectives on risk

• identify and evaluate the principal risks in banking and insurance

• evaluate the impact of regulatory initiatives on the management of risk

• analyse the performance of managerial and operational strategies to manage risk

• engage in independent research to evaluate the effectiveness of risk management initiatives and their impact in the financial services sector

RMBI 5M6Z0074 2013 / 4

Case Studies

Robert Citron

Orange County

$2.3bn

$1.6 bn

€4.9bn

Jerome Kerviel Societe

Generale

Kweku Adoboli UBS

Programme Outline

• Weeks 1- 11

The financial crisis 2007-8

Risks & risk management

Risk measurement (VaR)

Enterprise-wide risk management (EWRM)

Banking regulation (Basel III)

The financial system and reforms – The Vickers Report

Credit risk management

Securitisation and capital management

Programme Outline

• Week 7-11

Operational risk

Liquidity risk

Derivative products

Insurance company operations and risks

Financial aspects of insurer operations

Insurance contracts and pricing

Investment of insurance funds

Regulation of the insurance industry (Solvency II)

Questions???????

E-mail – g.elgin@mmu.ac.ukNBS 4.38 0161- 247- 3766j.bambrick@mmu.ac.uk0161- 247- 1016