PENGURUSAN RISIKO

1.

NAME OF COURSE / MODULE

2.

COURSE CODE

MFC4013

3.

NAME(S) OF ACADEMIC STAFF

SAFEZA BINTI MOHD SAPIAN

4.

RATIONALE FOR THE

INCLUSION OF THE
COURSE/MODULE IN THE
PROGRAMME

This is an additional finance course for the programme. The course is exposing
students with principles and techniques in managing risk for financial institutions.

5.

SEMESTER & YEAR OFFERED

Semester 6 / Year 3
Face to face:

6.

TOTAL STUDENT LEARNING

TIME (SLT)

L
28

T
23

P
-

O
8

Total Guided and

Independent Learning:
120

L=lecture ; T=Tutorial; P=Practical; O=Others (Exam)

7.

CREDIT VALUE

120/40= 3 (3 credit); 2+2

8.

PREREQUISITE (IF ANY)

MFA 2013 Principles of Financial Management/ Risk Management and Insurance

1.
9.

OBJECTIVES

2.
3.

To familiarize students with the fundamental concepts in risk management

in Financial Institutions.
To highlight students on the types of risks in financial institutions.
To equip students with ample knowledge on how financial institutions
should manage those risks.

10.

LEARNING OUTCOMES

At the end of the course, learners will be able to:

1.
Explain the fundamental concepts in risk management. (LO2, P2)
2.
Analyze several types of risk in financial institutions. (LO3, CTPS3)
3.
Formulate the best technique to manage risk in financial institutions. (LO9LS2)

11.

TRANSFERABLE SKILLS

Student should be able to manage risk in financial institutions through a process of

lectures, tutorial and group discussion.

12.

TEACHING-LEARNING AND
ASSESSMENT STRATEGY

Teaching-learning strategy:

The course will be taught through a combination of formal lectures,

exercise, group work, using authentic materials, informal activities and various
textbooks. Collaborative teamwork will be fosters throughout the course. The
use of examination and internal reporting assessment will assess the students
ability to apply theoretical concept in context.
Assessment strategy:

Formative

Summative

13.

SYNOPSIS

The subject intends to provide knowledge and information on risk management from
conventional and Islamic perspective. Students are exposed to the fundamental
concepts of risk management. Emphasize would also be given on risk management
in the banking industry, risk management and mitigation.

14.

MODE OF DELIVERY

Lectures and tutorial (SCL)

Component

Self-study

Total

Assessment
(Library Seacrh)

Assignment

Test/Quiz/Exam

Tutorial

16.

CONTENT OUTLINE OF THE

COURSE/MODULE AND SLT
PER TOPIC

%
50
50
100

Continuous Assessment
Final examination
Total

Lecture

15.

ASSESSMENT METHODS
AND TYPES

4
4
2
4
2
2

3
3
2
3
2
2

13
13
7
13
7
7

Sovereign Risk

Technology and Other Operational Risk

Liquidity Risk
Liability and Liquidity Management
Continuous Test/Quiz/Assessment

1
2
4

1
2
3

6
6
3
6
3
3
1.
5
1.
5
3
6

TOPIC
Introduction to Risk Management
Risk Management Issues in Islamic
Financial Contract
Interest Rate Risk
Market Risk
Credit Risk
Off-Balance Sheet Risk
Foreign-Exchange Risk

FINAL
TOTAL

28

23

3.5

10

3.5
7
13
15

12

19

42

120

Main reference:
1.

Saunders, A. & Cornett, M.M. 2014 (8th Edition). Financial Institutions Management
: A Risk Management Approach. McGraw Hill

Additional references:

17

2.

Ioannis Akkizidis and Sunil Kumar Khandelwal. 2008. Financial Risk management
for IslamicBanking and Finance. Palgrave Macmillan.

3.

Rania Abdefattah Salem. 2013. Risk Management for Islamic Banks. Edinburgh
University Press.

4.

John C. Hull. 2010. Risk Management and Financial Institutions. Pearson

International Edition

REFERENCES

Mapping of the course/module to the Programme Learning Outcomes

Contact
Lesson Learning Outcome
hours
TOPIC
(week)
(Students are able to)

Introduction to Risk Management

Financial intermediaries
Financial service industry
Risk in financial intermediaries

1. describe the special functions of financial

intermediaries and financial service industries.
2. explain the concept of risk in financial
intermediaries.
3. Understand the different concept of Islamic
Financial Institutions and Conventional banking.
4. Explain the risk involves in financial institutions
based on Islamic and conventional
1.
2.

Risk Management Issues in Islamic

Financial Contract

3.

Describe the risk management issues in financial

institutions.
Explain risk involve in Islamic financial contracts
(Musharakah, Mudharabah, Murabaha, Salam,
Istisna, Ijarah)
Discus risk management issues in financial
institutions: Basel ii and iii, IFSB principles of risk
management.

CLO

KI

LO2

Assessment
Tasks

o Lecture
o Library Search (Issues in
Risk Management)

Feedback on
library search

LS2
CTPS3

o Lecture
o Tutorial activities exercises
o Library Search

Feedback on
tutorial activites
Feedback on
library search

LO2

LO9
Lo3

Teaching & Learning

Activities

1. use the repricing model in measuring interest rate

risk
2. analyze the duration model approach in measuring
interest rate risk.

LO3
LO3

CTPS3
CTPS3

o Lecture
o Tutorial activities - exercises

Feedback on
tutorial activities

1. explain the importance of measuring market risk

2. compare the three approaches in measuring market
risk

LO2
LO3

CTPS3

o Lecture
o Tutorial activities - exercises

Feedback on
tutorial activities

Credit Risk
Default risk model on individual loan
Loan portfolio and concentration risk

LO2

1. discuss different approaches to measure credit or

default risk on individual loans
2. analyze various approaches to measure credit
portfolio and concentration risk

o Lecture
o Tutorial activities - exercises

Feedback on
tutorial activities

Off-Balance Sheet Risk

Off-balance sheet activities and FI
solvency
Non-schedule L off-balance sheet risk

1. explain the off-balance sheet activities

2. describe the risks and returns of several off balance
sheet items

LO1
LO2

o Lecture
o Tutorial activities - exercises

Feedback on
tutorial activities

Foreign-Exchange Risk
Sources of foreign exchange risk
Foreign currency trading

1. analyze the sources of FX risks

2. illustrate possible ways to mitigate FX risks

LO3
LO3

o Lecture
o Tutorial activities - exercises

Feedback on
tutorial activities

Interest Rate Risk

Repricing model
Duration
Market Risk
The Risk-metrics model
Historic (Back Simulation) approach
Monte Carlo simulation approach

LO3

CTPS3

CTPS3
CTPS3

TOPIC
Sovereign Risk
Credit risk vs. sovereign risk
Debt repudiation vs. debt
rescheduling
Country risk valuation

Contact
hours
(week)

Technology and Other Operational

Risk
Sources of operational risk
Impact of technology
Other operational risk

Liquidity Risk
Causes of liquidity risk
Liquidity risk in depository institutions
Liquidity risk and financial service
industries
Investment funds

Liability and Liquidity Management

Liquid asset management and it
composition
Liability management and structure

Lesson Learning Outcome

(Students are able to)
1. explain the problems FIs face from sovereign or
country risk exposure
2. evaluate country risk.

1. Explain the main elements in operational risk and

identification of operational risk
2. explain the risks appear from the usage of
technology in FIs
3. compare the impact of technology for wholesale
and retail services.

1. describe the causes of liquidity risk faces by FIs

2. compare and contrast the liquidity risk faces by
different FIs.

1. construct optimum composition of liquid asset

portfolio.
2. select the most favorable liability structure.

CLO

KI

LO2

P1

LO2

P2

LO3

CTPS3

LO3

CTPS3

LO2
LO3

CTPS3

LO9
LO3

LS2
CTPS3

Teaching & Learning

Activities

Assessment
Tasks

o Lecture
o Tutorial activities - exercises

Feedback on
tutorial activities

o Lecture
o Tutorial activities - exercises

Feedback on
tutorial activities

o Lecture
o Tutorial activities - exercises

Feedback on
tutorial activities

o Lecture
o Tutorial activities exercises
o Library Search

Feedback on
tutorial activities
Feedback on
library search

The Faculty of Economics & Muamalat shall produce graduates

in Bachelor of Muamalat Administration with Honors who are:
PEO No.

PROGRAM EDUCATIONAL OBJECTIVES

PEO1

Practitioners who synthesize and apply the integrated knowledge of 'aqli and naqli,
understanding and industrial experiences in Muamalat areas to provide quality
services to the goverment agencies and business-related industries locally and
globally.

PEO2

Practitioners who lead and engage in team in problem solving tasks across
disciplines through effective managerial and communicative abilities in a
competative environment.

PEO3

Practitioners who continue to advance their administrative and managerial

knowledge by using ICT and Muamalat elements to explore bussiness
opportunities.

PEO4

Practitioners who practice Islamic, ethical and professional values in providing

services to the stakeholders of the business-related industries.

PO No.

PROGRAM OUTCOMES

PO1

Able to acquire and apply knowledge of various related fields in Muamalat

administration. (LO1)

PO2

Able to acquire and apply business management skills in multi-discipline

industries. (LO2)

PO3

Able to demontrate problem-solving skilld and critical thinking. (LO3)

PO4

Able to express and articulate business ideas orally and in written form effectively.
(LO4)

PO5

Able to work in a multidisciplinary team.(LO5)

PO6

Able to acquire and apply Islamic standards of values, ethics and professionalism
in their professional work.(LO6)

PO7

Able to acquire and disseminate the Islamic administration, knowledge and skills
independently using the technology information.(LO7)

PO8

Able to manage small businesses. (LO8)

PO9

Able to lead multi disciplinary organization. (LO9)

Room:
Phone: 06798 6428/ 019 8857273
Email: yazis@usim.edu.my