- Student Records
Programme & Unit Catalogues


MN30316: Risk management and internal control

Follow this link for further information on academic years Academic Year: 2012/3
Follow this link for further information on owning departmentsOwning Department/School: School of Management
Follow this link for further information on credits Credits: 6
Follow this link for further information on unit levels Level: Honours (FHEQ level 6)
Follow this link for further information on period slots Period: Semester 2
Follow this link for further information on unit assessment Assessment: CW 25%, EX 75%
Follow this link for further information on supplementary assessment Supplementary Assessment: Like-for-like reassessment (where allowed by programme regulations)
Follow this link for further information on unit rules Requisites: Before taking this unit you must take MN20018
Follow this link for further information on unit content Description: Aims:
The aim is to provide students with an understanding of:
* the nature of risks facing the business organisation; with particular emphasis on financial risks, and
* methods and tools for controlling and managing the exposure to such risks.

Learning Outcomes:
By the end of this unit, the student should be able to:
* identify and prioritise the risks facing an organisation based on provided information and general business knowledge,
* evaluate and comment on appropriate internal control systems for identifying, assessing and managing such risks,
* explain the need for and essential features of the internal audit, and
* calculate the exposure of an organisation to a particular risk and the effect of various risk management techniques, e.g. internal hedging, use of traded and over-the-counter derivative financial instruments.

Skills:
Intellectual Skills
* the ability to adopt a wide perspective in assessing the implications of an organisation´┐Żs activities; FA
* the ability to identify appropriate responses to risky or uncertain situations. TFA
Professional Practical Skills
* the ability to identify and quantify the potential financial impacts of risks; TFA
* the ability to identify appropriate risk management techniques; TFA
* the ability to analyse and make recommendations on internal control systems and procedures. TFA
Transferable/Key Skills
* the ability to apply quantitative and decision-making techniques in a situation of risk or uncertainty; TFA
* the ability to advise on management decisions based on objective, quantitative analysis. F
Personal/Interpersonal
* the ability to communicate relatively complex financial concepts and recommend appropriate management action. FA

Content:

* Sources of financial risk, including those associated with international operations and trading.
* Methods and techniques for calculating the potential impacts of risks in financial terms, e.g. expected present value, value at risk, sensitivity analysis.
* Operation and features of the more common instruments for managing commodity price and financial (interest rate and currency) risks, e.g. forwards, futures, options and swaps.
* Principles of management control systems, e.g. identification of responsibility centres, target setting, and the impacts of organisational structure.
* Purposes and nature of internal control systems for identifying and assessing risks, e.g. safeguarding shareholders' interests, support of operational efficiency, contribution to reliability of financial reporting, including relevant provisions of the Combined Code on corporate governance.
* The role and features of the internal audit process.
* Introduce students to Credit Risk, its management and the impact on organisational performance (i.e. issuing corporate debt, valuing debt, debt ratings).
Follow this link for further information on programme availabilityProgramme availability:

MN30316 is Compulsory on the following programmes:

School of Management
  • UMMN-AFB02 : BSc (hons) Accounting and Finance (Full-time) - Year 3
  • UMMN-AKB02 : BSc (hons) Accounting and Finance (Full-time with Thick Sandwich Placement) - Year 4

MN30316 is Optional on the following programmes:

School of Management
  • UMMN-ANB01 : BSc (hons) Business Administration (Full-time with Thin Sandwich Placements) - Year 4

Notes:
* This unit catalogue is applicable for the 2012/13 academic year only. Students continuing their studies into 2013/14 and beyond should not assume that this unit will be available in future years in the format displayed here for 2012/13.
* Programmes and units are subject to change at any time, in accordance with normal University procedures.
* Availability of units will be subject to constraints such as staff availability, minimum and maximum group sizes, and timetabling factors as well as a student's ability to meet any pre-requisite rules.