MODULE PROFILE
Programme Bachelor of Commerce in Banking and Finance
Module Title & Code Risk Management: BRM2205
Credit Points 12
NCQF level 7
Pre requisite None
Module Synopsis The purpose of risk management is to identify potential problems before they occur so that
risk-handling activities may be planned and invoked as needed across the life of the
product or project to mitigate adverse impacts on achieving objectives. The module gives
students the fundamental principles of managing risks in an organization.
Module Objectives The objectives of this module are to:
1. Help students appreciate risk management and its importance in the management of
a banking institution’s resources.
2. Equip students with the skills required to manage risks in a bank.
3. Gain an insight of the principles that govern risk management in the light of the
profit motive of an institution.
Module Learning Topics and Sub topics Teaching and learning Assessment
Outcome (must (specific to the learning outcomes and Strategies Strategies
Page 1 of 6
be outcome based and topic/s) (specific to the learning (specific to the
aligned to the outcomes and topic/s) learning outcomes
qualification exit level and topic/s)
outcomes)
1. Categorize the various 1.1. Introduction to Risk Class discussions, Assignments
risks faced by a Management Lectures PPT, Progress Test
Case studies Class exercise
financial organization;
Definition of Risk
Classification of risks according
to type
The background to current Risk
Management Practices.
Risk Management and Insurance
– the link
Class discussions, Assignments
2. Differentiate between 2.1. The Risk Management Process. Lectures PPT, Progress Test
risk assessment and YouTube Videos, Class exercise
risk management. Risk Identification
Risk Assessment
Risk Evaluation
Page 2 of 6
Risk Control
and Mitigation
Other different approaches
Class discussions, Assignments
3. Determine levels of 3.1. Major Risks in a banking Lectures PPT, Progress Test
risk in accordance with institution. Debates Examinations
risk matrix used by the Guests speakers Group
organization Work shops presentations
Operational Risk Class exercise
Legal Risks
Financial Risk
4. Design a Class discussions, Examinations
comprehensive risk 4.1. Risk Control & Risk Financing Lectures PPT, Group
management strategy Guests speakers presentations
for a banking Avoidance of Risk Class exercise
institution
Reduction of Risk
Retention of Risk
Risk Transfer
5. Assess the Lectures PPT, Examinations
effectiveness of 5.1. Enterprise Risk Management Tutorials, Group
Page 3 of 6
existing risk control Case studies presentations
measures in the Holistic management of risk Class exercise
organization.
The Barriers to ERM
Importance of ERM
Key Success factors to ERM
Overall Risk Management
ERM framework
6. Analyze the Class discussions, Assignments
interaction of main 6.1. Corporate Governance and Lectures PPT, Progress Test
actors and the Basel II Committe Case studies Examinations
functioning of Debates Group
corporate governance presentations
structures in the The Role of the two governing
financial service bodies in financial institutions
industry
The reasons for implementing
Corporate Governance
The impact of corporate
governance on Business Areas
of Financial institutions.
Required Resources Prescribed Textbooks: Recommended Reading Equipment:
List:
1. Valsamakis A.C, Vivian, R.W, and 1. Young J. (2006). 1. Multi-media
Page 4 of 6
Du Toit, G.S. (2000). Risk Operational Risk projector
Management, 2nd Edition, Management: The 2. Laptop computer
Heinemann, Johannesburg. practical application of a 3. Whiteboard,
qualitative approach. 1st whiteboard
Edition. Van Schaik. markers and
Cape Town. eraser.
2. Chapman, R. J. (2011).
Simple Tools and
Techniques for
Enterprise Risk
Management. 2nd Ed.
Wiley Finance series.
U.K.
3. Basel Committee on Banking
Supervision. 2003. Sound
Practices for the Management
and Supervision of
Operational Risk, Switzerland,
Bank for International
Settlements, 2001 revised
2002 and 2003
4. Cecchetti, S. G. (2012)
Money, Banking and
Financial Markets, 2nd
Edition Tata McGraw Hill
Page 5 of 6
Education.
5. Casu, B., Girardone, C.
& Molyneux, P. (2006)
Introduction to Banking,
1st Edition, Pearson
Education.
Page 6 of 6