RMBI 5C3290 2012/13

Risk Management in Banking & Insurance

2012 / 13Graeme ElginRoom 4.38Ext.3766g.elgin@mmu.ac.uk

Course Structure

RMBI 5C3290 2012/13

Delivery Modes

Lectures

Tutorials

Moodle

Modes of Assessment

1. Assignment

(40% of total unit mark)

2. Final Examination

(60% of total unit mark)

StaffingLectures / Tutorials – Graeme Elgin

E-mail – g.elgin@mmu.ac.uk

Room 4.38 0161- 247- 3766

What is Risk Management?

RMBI 5C3290 2012/13

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

Three stage process………

1. Identification

2. Analysis of risks specific to the organisation

3. Responding to the risks identified

So what’s in it for me? Knowledge and understanding of…

the origins, nature and evolution of business and financial risk;

the concepts, models and techniques for measuring, monitoring and managing risk;

the regulatory framework, compliance systems and procedures;

capital, liquidity and solvency requirements in banks and insurance companies;

strategic, operational and financial considerations that influence the decision of organisations to self-manage or transfer risk;

the general structure and function of insurance and reinsurance companies;

the underlying principles and technical processes involved in the management of insurance companies.

RMBI 5C3290 2012/13

So what’s in it for me? Ability to… describe and explain the nature of business and

financial risk and methods of managing risk; describe and discuss the implications of the

regulatory framework within which risk management decisions are taken;

demonstrate awareness of risk management and underwriting principles, processes and techniques;

describe and explain strategies to monitor and control risk, and the forces that influence an organisation’s choice of strategy for managing risk;

demonstrate an appreciation of the concepts and methods that can be used to assess the performance of risk management strategies, and the financial performance and strength of companies and financial institutions

RMBI 5C3290 2012/13

Case Studies

Northern £827mRock

Barings €4.9bn

Societe Generale£27bn

RMBI 5C3290 2012/13

Specific Study areas

Nature of risk Role of the risk manager Risk measurement Financial regulation and corporate governance Basel accords Credit risk Operational risk Liquidity risk Interest rate risk Hedging Securitisation Insurance – Functions, Market, Regulation, Underwriting,

Investment of funds

RMBI 5C3290 2012/13

Questions???????

E-mail –

g.elgin@mmu.ac.uk

Room 421

0161- 247- 3766

RMBI 5C3290 2012/13