| CODE | BFI5408 | ||||||||||||
| TITLE | Treasury Management | ||||||||||||
| UM LEVEL | 05 - Postgraduate Modular Diploma or Degree Course | ||||||||||||
| MQF LEVEL | 7 | ||||||||||||
| ECTS CREDITS | 5 | ||||||||||||
| DEPARTMENT | Banking, Finance and Investments | ||||||||||||
| DESCRIPTION | Treasury Management is a study-unit which is built purely on a practical concept. This study-unit is intended to cover the fundamental areas of international treasury, risk management and how it could be applied at a company level. It seeks to introduce the core notions for a treasurer, especially the concept of interest rates, and the fundamentals of Forex. Treasury Management ensures sufficient liquidity to meet obligations, whilst managing payments, receipts and financial risks such as Exchange Rate and Interest Rate Risk effectively. This study-unit focuses on the role of treasury in financial risk management by discussing the concept of hedging. Students will be in a position to start understanding the idea of which financial derivative instrument is best to employ and how much as a percentage needs to be hedged. In addition, effective treasury and risk management will help the students to enable their companies to make informed and better strategic decisions, providing the analysis, finance and risk assessment. Study-Unit Aims: The main aim behind this study-unit is to provide a fundamental understanding on corporate and institutional financial risk management. This study-unit will focus on managing the exposure of interest rate risk and exchange rate risk through the use of various financial instruments - Forwards, Futures, Swaps, and Options and Money Market Hedge. Students will have the privilege to experience a hands-on and a practical example driven module by using real Financial Times data. Learning Outcomes: 1. Knowledge & Understanding: By the end of the study-unit the student will be able to: - Explain the scope of Treasury & Risk Management; - List and explain the main uses of each derivative instrument in relation to the specific risk being involved; - List and explain the latest international tools and techniques that enable to identify; measure and manage risk effectively; - List and explain the features and benefits of derivatives as risk management tools; - Explain how financial instruments are employed depending on the companies specific policy. 2. Skills: By the end of the study-unit the student will be able to: - Compute the relationship between the risk and the price of a hedging instrument; - Resolve practical risk management problems; - Quantify interest rate and foreign exchange rate risk exposure faced by various organisations; - Create a strategy for a stable corporate environment by minimising these financial risks; - Compute and quantify financial risks by selecting the right figures from real FT data. Main Text/s and any supplementary readings: Main Texts: - Hull, J.C., (2010). "Options, Futures and Other Derivatives", 7th Ed., Prentice Hall Finance Series. Supplementary Readings: - Bodie, Z., Kane, A., and Marcus, A.J., (2009). 鈥淚nvestments鈥�, 8th Ed., McGraw-Hill/Irwin. - Durdin, M., (2006). 鈥淎ll about Derivatives鈥�, 1st Ed., McGraw-Hill. - Chisholm, A. M., (2004). 鈥淒erivatives demystified - A Step-by-Step Guide to Forwards, Futures, Swaps and Options鈥�, 1st Ed., John Wiley & Sons Ltd. - Bragg, Steven M. (2010). " Treasury Management: The Practitioner's Guide: 1st Ed., (Wiley Corporate F&A)" |
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| ADDITIONAL NOTES | Pre-requisite Qualifications: B.Com. (Hons.) Banking & Finance, B.Com. Banking & Finance Major or equivalent | ||||||||||||
| STUDY-UNIT TYPE | Lecture | ||||||||||||
| METHOD OF ASSESSMENT |
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| LECTURER/S | Noel Cassar |
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The University makes every effort to ensure that the published Courses Plans, Programmes of Study and Study-Unit information are complete and up-to-date at the time of publication. The University reserves the right to make changes in case errors are detected after publication.
The availability of optional units may be subject to timetabling constraints. Units not attracting a sufficient number of registrations may be withdrawn without notice. It should be noted that all the information in the description above applies to study-units available during the academic year 2025/6. It may be subject to change in subsequent years. |
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