In Module Assessment (Individual Coursework) Module Title: Risk Management Module Code: 6FNCE007W Module Status: Core, BSc(Hons) Finance/ Option on others Assessment Weighting: 25% In Module Assessment: Individual coursework Submission Date: 25th October 2021 (Learning Week 9) Provision Marks and Feedback Date: 24th November 2021 (Learning Week 12) Where to Access the Feedback: Module Blackboard Site Feedback Method: Mixture of Formative and Summative Assessment Feedback. Students receive comments on their ability to link theory into practice in terms of applying risk management techniques and interpreting financial risks on a specific company. Assignment Outline: The assignment is an individual report on risk analysis of a specific company. You are required to write a risk report on a specific company for an institutional investor who has 120,000 to invest. You are working for the investor so the report should be neutrally worded. This is not a sales report where your aim is to persuade the investor to take a position. Instead it is an honest evaluation of risk to enable the investor to make the correct decision for themselves. You are not required to provide a recommendation. The aim of the investor is to make a positive return from their capital, therefore, you should attempt to identify risks which will affect the company and might lead to a reduction in share price. You should also, where appropriate, use numerical techniques to quantify the risks of the investment. Required:

1. You are free to arrange the report in any way you like, however, the first page must contain a title (containing the Company name) and an Executive Summary (no more than 200 words) describing your key findings.

(Marks allocated: 10% - no more than 200 words)

1. Estimate the Market Risk Capital Charge under Basel II and Basel II.5 for the institutional investor if they invested in the company. You are required to use both variance-covariance and historical simulation method to estimate the market risk capital charge (collecting the historical closing price for the company for one to four years). You should also compare the results from and pros and cons of the chosen variance-covariance and historical simulation methods.

(Marks allocated: 35%)

1. There are a range of risks which may affect the company and you should attempt to identify and describe the specific risks. Depending on the firm these may include: market risk, risks to the sector*, foreign exchange rate risk*, credit risk*, operational risk* and others. (* note numerical analysis is not required for these risks due to difficulty of obtaining data)

(Marks allocated: 35%)

1. For the risks analysed above, address if any of these risks may easily be reduced by the institutional investor. Estimate the worst case scenarios for the investor using quantitative analysis. In particular, if the investment goes badly, how much they are likely to lose. In doing this you should present your calculations and justify your approach.

(Marks allocated: 20%) Format of Coursework:

1. An electronic copy of your assignment, which is properly labelled with your Company name (anonymous marking, do not put your name), should be submitted via the module blackboard site.
2. An Excel spreadsheet (labelled with your Company name), containing stock data and all calculations where necessary should be submitted via the module blackboard site.
3. You must include your student number, module title and report title on the first page (Cover Page) of your report. The report is 1000 words (10%) excluding appendices, with size 12 font and 1.5 line spacing for the main text.
4. List of References should be included if any materials were cited in the report, following the Westminster Harvard Referencing Style. Appendices may be used where necessary to include relevant definitions or data.

You are expected to make full use of all the facilities offered by the University libraries and other sources. Examples of other sources of information include the Financial Times, the Economist, Investors Chronicle, Fame database, Bloomberg, DataStream, Excel cards and databases. The assignment must go through Turnitin and submitted electronically before 13:00 on Thursday 4^th November 2021. The rules on late submission and plagiarism are applied and fully enforced by the school. Submission of Coursework Unless explicitly stated otherwise in writing by the module leader, all coursework on this module is submitted via Blackboard only. It will automatically be scanned through a text matching system (designed to check for possible plagiarism).

• DO NOT attach a CA1 form or any other form of cover sheet;
• YOU MUST include your Company on the first page of your assignment.

You will be given details by the module teaching team about how and when you will receive your marks and feedback on your work. REMEMBER: It is a requirement that you submit your work in this way. All coursework must be submitted by 13:00 on the due date. If you submit your coursework late but within 24 hours or one working day of the specified deadline, 10% of the overall marks available for that element of assessment will be deducted, as a penalty for late submission, except for work which is marked in the range 40 49%, in which case the mark will be capped at the pass mark (40%). If you submit your coursework more than 24 hours or more than one working day after the specified deadline you will be given a mark of zero for the work in question. The Universitys mitigating circumstances procedures relating to the non-submission or late submission of coursework apply to all coursework.

Attachments:

coursework-6f....docx