Teaching plan for the course unit

General Information

Competences / Learning outcomes to be gained during study

• — Knowledge forming the basis of original thinking in the development or application of ideas, typically in a research context.

• — Capacity to apply the acquired knowledge to problem-solving in new or relatively unknown environments within broader (or multidisciplinary) contexts related to the field of study.

• — Ability to act professionally in the actuarial and financial field, with a considerable degree of independence.

• — Capacity to classify and measure actuarial, financial and investment risks, and to take related decisions.

• — Capacity to analyse, design and assess actuarial and financial products.

• — Capacity to understand the specific business, legal and accounting conditions of insurance and financial entities.

Teaching blocks

Teaching methods and general organization

To meet the above objectives, theoretical classes are combined with practical classes, in which students are expected to solve numerical problems. Some sessions are also dedicated to the discussion and presentation of practical cases of risk management in financial markets by students. Students’ active participation helps to achieve the objectives. Most of the material that students must read is in English, so that they become familiar with the main literature in this field.

Official assessment of learning outcomes

Continuous assessment

Continuous assessment comprises the following activities:

1) Mid-term examination on Block I. The lecturer announces the official date of the examination as early as possible. This consists of a multiple-choice test. It includes topics 1-6 of the first block (“Derivatives and risk management”) and is worth 35% of the final grade. Students who pass this examination with a mark above 4 out of 10 will not be tested on this material in the final examination.

2) Preparation, presentation and discussion of case studies. This task consists of studying some specific cases from Block II (“Risk management in financial institutions”). Students must form groups of two or three. The lecturer will recommend articles from the financial press, official reports from central banks or other supranational institutions, or academic articles published in indexed journals. Some examples are technical analyses of failures of banking institutions such as Northern Rock in the United Kingdom, the Banco Popular in Spain, or Lehman Brothers in the USA; and analyses of other non-banking institutions such as the AIG. Other articles may be on technical analyses and the risk management implications of financial innovations such as securitisations. Students, in a group and under the lecturer’s supervision, must summarise the knowledge gained from a report and prepare a presentation for discussion in class. The written report on the case study corresponds to 25% of the final grade, and the presentation is worth 10% of the grade. During the course, the lecturer will provide guidelines on how to prepare the report and the presentation. In addition, students could select any other topic of interest, which must be approved by the lecturer.

3) Final examination. It consists of open-answer questions on the theoretical content of block II of the teaching blocks. The examination is held on the official assessment date and is worth 30% of the final grade.

To pass the subject in continuous assessment mode, students must obtain an average mark of at least 5 out of 10 in the three tests described above.

Single assessment consists of a final examination of a theoretical and practical nature on the teaching blocks of the subject. It covers the points discussed in class on topics 1-11. The final examination for students who have opted for single assessment is different from the examination for students in continuous assessment mode. The minimum grade to pass the exam is 5 points out of 10.

If required, repeat assessment consists of an examination of a theoretical and practical nature on the programme’s contents. This examination is designed for students who, regardless of the assessment mode, have obtained a mark of less than 5 out of 10.