2024/25 Undergraduate Module Catalogue

LUBS3145 Risk Management in Banking

10 creditsClass Size: 60

Module manager: Usman Gilani
Email: u.j.gilani@leeds.ac.uk

Taught: Semester 2 (Jan to Jun) View Timetable

Year running 2024/25

Pre-requisites

LUBS2260	Banks and Banking Systems
LUBS2265	Commercial Banking

This module is not approved as a discovery module

Module summary

This module examines the major banking risks with an emphasis on their measurement and management. The focus is on the implementation of conventional risk-management techniques to cope with risks that arise from i) the asset side; ii) the liability side and iii) from a bank’s exposure to off-balance sheet activities. Practical examples will be used to demonstrate the effectiveness of risk-management strategies in reducing a bank’s exposure to risks.

Objectives

By completing this module, students will acquire an understanding of the role and importance of risk-management in the modern banking business. They will be familiar with tools and strategies to quantify and reduce the exposure of a bank to risks. The module will provide students with the ability to apply quantitative tools that are conventionally part of the management of banking risks.

Learning outcomes
After completing this module students should be able to:
- Identify and assess the major banking risks
- Explain and critically evaluate conventional risk-management techniques in the banking industry
- Explain and critically assess the key differences between ‘Gap Analysis’ and ‘Duration Gap Analysis’ in the management of interest rate risk
- Describe and critically evaluate a stress-test analysis of major banking risks.

Syllabus

1. Banking risks
2. Credit Risk Management: Individual Loan Risk
3. Credit Risk Management: Portfolio Risk
4. Liquidity Risk Management
5. Interest rate risk management: Gap Analysis and Duration Gap Analysis
6. Interest rate risk management: The use of derivatives
7. Market risk and value at risk (VaR)
8. Operational risks
9. International risk assessment
10. Risk reporting and stress tests
11. Banking Ethics

Teaching methods

Delivery type	Number	Length hours	Student hours
Lecture	11	1.50	16.50
Seminar	5	1.00	5.00
Private study hours			78.50
Total Contact hours			21.50
Total hours (100hr per 10 credits)			100.00

Private study

This could include a variety of activities, such as reading, watching videos, question practice and exam preparation.

Opportunities for Formative Feedback

Formative feedback will be available through feedback on some Mock Exam.

Methods of assessment

Exams

Exam type	Exam duration	% of formal assessment
Online Time-Limited assessment	48 hr	100.00
Total percentage (Assessment Exams)		100.00

The resit for this module will be 100% by 2 hour examination.

Reading list

The reading list is available from the Library website

Last updated: 29/04/2024 16:16:21

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