Risk Management Principles

This micro-credential examines the risk landscape of Financial Markets in Australia and the principles that influence how this risk is managed. We examine the principles and practices used by institutions to manage both financial market risks and the risk management services provided to clients by financial institutions. We outline the global risk management frameworks for banks and securities firms, and we consider the risk management process defined in the international risk management standard and its application to financial markets and the risks arising in the deal lifecycle. We discuss the controls used to manage them including the client suitability framework applied by financial institutions to assess and manage clients. The unit also examines issues of managing conduct risk, cognitive biases, social dynamics, and situational factors. The lessons from this unit build on those from the earlier units and provides a foundation for the Elective Units. Learning Outcomes • Evaluate and analyse risks both within a financial institution and for their clients • Analyse the risks arising through the deal lifecycle and appreciate the rationale for various controls • Evaluate client’s financial objectives and risk appetite management requirements when providing advice • Create a financial strategy to implement appropriate hedging strategies and manage risk in line client’s requirements • Evaluate and apply the AFMA professional code of conduct. Key Topics • Risk Management & Risk management through the deal lifecycle • Providing advice • Developing and monitoring risk management strategies for clients & Conduct and ethics Activities • Self directed online resources • Case studies, group work and in class exercises • Final report - assessed • Short answer questions - assessed Volume of Learning is 75 Hours at AQF Level 9.