BAM6232 - Corporate Risk & Control

Objectives:

On successful completion of the module, students will be able to:

1 discuss corporate performance measurement systems and the use of incentives and bonuses in corporate governance;
2 evaluate and recommend appropriate financial control systems for the management of organisations;
3 produce an audit plan and analyse potential problems, recommend action to improve efficiency, effectiveness and control;
4 assess audit principles and practice and distinguish between internal and external audit;
5 identify exchange rate risk within an organisation and evaluate alternative methods for risk management;

Content:

Corporate governance, corporate performance measurement and incentive schemes, agency theory and goal congruence of directors and shareholders. Control systems, components, primary and secondary feedback, open and closed loop control. Types and sources of risks, fraud, theft, economic risk, financial risk, exchange rate risk and political risk. Role of internal audit, audit planning, documentation, questionnaires, sampling and testing. Detection and investigation of fraud. The concept of risk and risk reduction. Probability, modelling and simulation. Risk reduction techniques, futures and options contracts. Pooling and reselling risk.

Learning and Teaching Information:

The module will be delivered via a series of weekly one-hour whole-group interactive lectures supported by weekly one-hour small group tutorial / workshop sessions. Questions / exercises will be set at each lecture meeting for students to complete before the associated small group session. Students will be provided with, and/or directed to, relevant reading and additional questions / exercises to support their progress through the module material. Additional workshop time will be provided for students needing extra practice with a computer spreadsheet.

Lecture / workshop session
Contact hours
Number of groups: 40 1 group of 30 students

Assessment:

001 Portfolio of up to 3 tests and exercises 1 x 2500 words equiv 50%
002 Unseen examination 1 x 2 hours 50%


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