AFF9770 - Risk financing and treasury management

Offered

Caulfield First semester 2009 (Evening)
Caulfield First semester 2009 (Weekend On-campus)
Caulfield Second semester 2009 (Evening)
Caulfield Second semester 2009 (Weekend On-campus)

Synopsis

Topics include the evaluation of risk; financing tools; retention and transfer; insurance; non insurance; pre and post loss funding; retention and self insurance decisions; insurance and reinsurance principles and practices for the corporate buyer; deductible selection models; management and administration of losses and insurance claims; institutional factors, accounting factors, including taxation and government incentives; captive insurance companies; international considerations; financial transfer by contract.

Objectives

The learning goals associated with this unit are to:

• develop critical skills in understanding, analysing and applying concepts and models relating to risk management by the treasury of an organisation
• develop an understanding of optimum capital structure, maximisation of firm value and investment risk management faced by the treasury
• explain the link between theory of derivative products, insurance products and credit derivatives such as securitization and the real world situation
• develop writing and presentation skills by requiring the submission of group assignments relating to existing practices followed by the banks
• develop the ability to work independently by requiring presentation of tutorials answers relating to risk management by the financial institutions.

Assessment

Within semester assessment: 50%
Examination (3 hours): 50%

Contact hours

3 hours per week