FIN521 Corporate Treasury Management (8)

The principal focus of this subject is the corporate treasury risk management aspects of corporate finance. The subject introduces techniques for identifying and quantifying different types of financial risk faced by companies. It also introduces important derivatives that serve as tools for managing these risks. Particular emphasis is given to hedging strategies using these derivatives to manage financial risk.

No offerings have been identified for this subject in 2020.

Where differences exist between the Handbook and the SAL, the SAL should be taken as containing the correct subject offering details.

Subject Information

Grading System

HD/FL

Duration

One session

School

School of Accounting and Finance

Enrolment Restrictions

Postgraduate Students only

Assumed Knowledge
FIN516

Learning Outcomes

Upon successful completion of this subject, students should:
  • be able to identify, appraise and compare different types of financial risks faced by companies;
  • be able to breakdown and illustrate how different types of financial derivatives are structured and priced;
  • be able to construct and justify hedging strategies combining a range of financial derivatives to manage different types of financial risks;
  • be able to generate, evaluate and use quantitative information to measure the benefits and costs of different financial derivatives as risk management tools in different risk circumstances; and
  • be able to design and apply hedging strategies and interpret the results to case study scenarios.

Syllabus

This subject will cover the following topics:
  • the functions of corporate treasury and the importance of managing financial risk;
  • identifying risk exposure and the benefits of financial risk management;
  • introduction to interest rate risk management;
  • forwards and futures;
  • term structure of interest rates and forward rate agreements;
  • options;
  • interest rate swaps and floating rate payments;
  • currency and commodity swaps;
  • interest rate risk and security design;
  • alternative approaches to interest rate risk management;
  • foreign exchange and risk management; and
  • value at risk.

Indicative Assessment

The following table summarises the assessment tasks for the online offering of FIN521 in Session 1 2019. Please note this is a guide only. Assessment tasks are regularly updated and can also differ to suit the mode of study (online or on campus).

Item Number
Title
Value %
1
Online test
5
2
Assignment
20
3
Case study
15
4
Final exam
60

The information contained in the CSU Handbook was accurate at the date of publication: July 2020. The University reserves the right to vary the information at any time without notice.

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