Summer Course: Finance and Risk Management in the Global Economy

General

Read more about this program on the school's website

Program Description

Programme Description

Due to the situation surrounding Covid-19, we are currently looking into alternative options for teaching our programme this year. Full details will be announced soon, but in the meantime please get in touch with any questions you may have.

This course provides participants with the essentials of finance and risk management including the theories, concepts, tools and techniques for understanding, discussing and evaluating key themes in finance and risk management. Many of the principles in risk management were developed in relation to financial firms such as banks and investment fund managers, but they are also applicable to non-financial firms in commerce, manufacturing, government or other sectors. The world changed after the global financial crisis of 2007-2009, in particular, the changes and challenges in financial sector regulatory constraints and the higher capital costs under Basel III. All firms face risks although the types of risks they face and their extent differ, consequently, risk management requires strategies for dealing with financial risks and appropriate techniques for implementing the strategies. Based on academic research on the principles together with practical examples and applications, students will learn how to calculate financial risks, and to change the combination of risk and expected return by taking the form of derivatives contracts (such as options and futures) that powerfully facilitate strategies to reduce risk (‘hedging’) or increase it (‘speculation’). Students will learn how banks manage downside risks through improving their risk measurement and management methodologies under the interconnected nature of the global financial system.

Topics that are covered in the course include understanding financial markets, financial instruments, financial institutions and the principles of risk management; examining concepts and methods used in the analysis of portfolios of financial securities, including stocks and bonds; explaining the use of financial derivatives for hedge and speculation in financial markets; and evaluating the application of risk.

Learning Outcomes

On successful completion of the course, a student should be able to demonstrate the ability to:

  • Identify what the elements and functions of financial markets, institutions, the financial instruments of capital markets and their increasingly significant interactions in the global economy
  • Understand what is portfolio risk and return and how risk and return are related and then learn how to measure and analyse portfolio risk-return analysis in equity and bond investment
  • Understand the theoretical concepts of financial derivatives in particular, futures and options contracts, distinguish between hedging and speculation strategies using futures and options, and skilfully use derivatives to managing financial risks, for instance, changes of interest rates, currencies, an stock prices.
  • Know the types of financial risks in banking and financial sectors, and the principles of managing financial risks, and learn how to measure and manage key regulatory risks in banking sector (market risk, credit risk, operational risk) under the Basel III.
  • Engage in rational thinking and discussing finance and risk management using a multidisciplinary framework by linking theories and concepts in finance, investment, business cycles, global financial crises and macroeconomic policies.
  • Develop and exhibit the intellectual disposition of confidence in reason to critically discuss the issues in finance, investment and risk management in the global economy.

Tutor Information

Dr Jeo Lee

Credits

This course is worth 15 credits in the UK system. 15 credits is equivalent to 4 credits in the US system and 7.5 ECTS in the European system. If you intend to transfer credit to your home institution, please check the requirements with them before you apply. We will be happy to assist you in any way we can, however please be aware that the decision to transfer credit rests with your home institution.

Assessment will be optional and will vary for each course. Participants will be provided with a certificate of attendance and a Record of Study will be available on request.

Structure

Week 1: Finance, Investment Risk and Capital Markets

  • Financial markets, institutions and instruments
  • Principles of the analysis of financial portfolios
  • Principles of Investment in equities and bonds
  • Principles of financial risk management

Week 2: Managing Financial Risks using Futures and Options

  • Forwards and futures
  • Financial options: payoff profiles
  • Hedging strategies using futures and options
  • Managing foreign exchange risk

Week 3: Risk Management in the Global Economy

  • Market risk: Measurement (VaR) and applications
  • Credit risk: Measurement (CreditMetrics) and applications
  • Operational risk in banking and finance
  • Future of global economic and financial market developments

Assessment: is optional and will be in the form of a 2000-2500 word essay to be handed in 2 weeks after the end of the course (70% of overall mark) and an individual presentation and numerical assignments (30% of overall mark)

Teaching & Learning

Contact hours:

50 hours (lectures, tutorials, activities). The course will be delivered Monday - Friday over the 3 weeks.

Core hours:

Monday - Friday, 10am-3pm. In addition to regular lectures and tutorials, each course is composed of a range of activities relating to their academic content (e.g. museum visit, company visit etc.). Optional hours:

Fees and Funding

Tuition Fees

  • Credit-assessed: £1,750
  • Non-assessed: £1,600

Application fee

A one-off, non-refundable application fee of £40 will be charged to cover administration costs. Please visit the SOAS online store to make your application fee payment.

Discounts

  • 10% early-bird discount when you apply by 31 March
  • 15% discount for SOAS Alumni (including Academic Summer School alumni)
  • 20% discount for our partner institutions
  • Other discounts are available for groups. Please contact us for further information.

Accommodation

For more information, please visit our website.

Entry Requirements

In order to join our Summer School, you will need to meet the following entry requirements:

  • A university student or a graduate at the time of attending the summer school, and 18+ years of age.
  • Professional experience can be acknowledged as equivalent to a university qualification.
  • A minimum English language requirement if English is not your first language:
    • IELTS, 6.5 overall or higher, with at least 6 in all subscores.
    • TOEFL Paper-based test we require a minimum of 583 with minimum 53 in all skills and for TOEFL Internet Based Test we require a minimum of 93 with minimum 20 in all skills.
    • Pearson Test of English a score of 59-64
    • Cambridge English: Advanced (CAE) Grade B
    • If you have studied in an English speaking institution, or have courses taught at your university in English (excluding English language courses), you may meet our requirements without having to supply a certificate. Evidence of this will either need to be included on a transcript or letter from your university.
    • Applicants with an alternative qualification should contact us for advice.
    • Applicants whose English language level do not meet out requirements may be interested in our subject-based courses with English language support.

Enrolment of Summer School applicants who don’t meet the entry requirements is at the discretion of SOAS – please get in touch to speak to us in detail about your application.

Application Procedure

Once you have paid the £40 application fee and submitted the online application form, you will be informed as to whether you have a place on the summer school within 5 working days. Please do not pay your tuition fee prior to having received your offer letter.

Application Deadline

25th May 2020

Last updated Apr 2020

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About the School

SOAS University of London welcomes the brightest minds to study on its central London campus with like-minded individuals who feel passionately about contemporary world issues.

SOAS University of London welcomes the brightest minds to study on its central London campus with like-minded individuals who feel passionately about contemporary world issues. Read less
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