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Risk in Financial Services

Module description

This module is intended for Investment Operations Specialist Degree Apprenticeship students who would like an introduction to the principle of risk management and international risk regulation. The module introduces the specific risks that face a financial services firm and provides an overview on the practice of using processes, method and tools for quantifying and managing these risks and uncertainties. The key elements of risk management and the differences between risk and uncertainly will be discussed in the module.

Full module specification

Module title:Risk in Financial Services
Module code:BEF1011DA
Module level:1
Academic year:2023/4
Module lecturers:
  • Jamal Ismayilov - Convenor
Module credit:30
ECTS value:






Duration of module: Duration (weeks) - term 2:


Module aims

This module aims to provide students with a broad understanding on the principles of risk management under the current economic environment. The module also introduces a background to the key sources of internal and external risks and their potential impact on a business. You will be able to identify the key elements of risk management and the differences between risk and uncertainty.


This module shows how key internal and external drivers of risk can be typically assessed to support an organisation’s management in risk culture and control. The overall aim is to introduce an overview of risk concepts and understand how risk management protects and add value to organisation and its stakeholders.

ILO: Module-specific skills

  • 1. Discuss the processes typically used to identify, reduce and manage specific aspects of risk
  • 2. Analyse the key elements of risk management and the differences between risk and uncertainty
  • 3. Discuss the key aims of the operational risk management function
  • 4. Identify the main areas of exposure of counterparty, systematic and issuer risk within banking, securities and investment functions
  • 5. Evaluate the merits and limitations of using credit ratings to assess credit-worthiness of companies and financial instruments
  • 6. Establish the role and sound practice features of an effective market risk management function
  • 7. Describe the main investment risks and their implications for investors and investment selection
  • 8. Explain the constituents of liquidity risk and how they can arise within the contexts of credit, market, investment and operational risk
  • 9. Discuss the structural framework and high-level process of key business functions in relation to risk identification and management
  • 10. Explain how enterprise risk relates to the process of corporate governance and board responsibilities

ILO: Discipline-specific skills

  • 11. Identify the key challenges of implementing risk governance structure, policies and procedures
  • 12. Identify how appropriate management of risk factors can add value and reduce risk
  • 13. With guidance identify, synthesise, analyse and present appropriate information to assist management with risk management in decision making process

ILO: Personal and key skills

  • 14. Apply professional communication skills in dealing with complex situations and issues
  • 15. Apply effective negotiation and problem-solving skills

Learning activities and teaching methods (given in hours of study time)

Scheduled Learning and Teaching ActivitiesGuided independent studyPlacement / study abroad

Details of learning activities and teaching methods

CategoryHours of study timeDescription
Scheduled Learning and Teaching Activities14 hours (2 days)Masterclass/workshops
Scheduled Learning and Teaching Activities40 hoursOnline lectures/webinars, ELE activities
Scheduled Learning and Teaching Activities16 hoursRevision on CISI's Revision Express
Guided independent study & work-based application230 hoursReading and research, web-based activities and assignment / exam preparation and work-based application of theory

Formative assessment

Form of assessmentSize of the assessment (eg length / duration)ILOs assessedFeedback method
Mock exam2 hour 100 MCQs1-7Marks and written genericl group feedback
Online DiscussionOnline discussion contributions1-15Online discussion feedback from peers and lecturer
Regular online quizzesRelevant quizzes, each taking about 20 minutes1-15Correct answers on ELE

Summative assessment (% of credit)

CourseworkWritten examsPractical exams

Details of summative assessment

Form of assessment% of creditSize of the assessment (eg length / duration)ILOs assessedFeedback method
Exam 502 hour 100 MCQs1-7Marks and written generic group feedback
Applied exercise assignment503000 words1-15Individual written feedback

Details of re-assessment (where required by referral or deferral)

Original form of assessmentForm of re-assessmentILOs re-assessedTimescale for re-assessment
Exam 50% 2 hour 100 MCQs1-76 weeks
Applied exercise assignment50% 3000 words1-156 weeks

Re-assessment notes

Defer – as first time

Refer – capped at 40%

Syllabus plan

  • Principles of Risk Management
  • International Risk Regulation
  • Operational Risk
  • Credit Risk
  • Market Risk
  • Investment Risk
  • Liquidity Risk
  • Model Risk
  • Risk Oversight and Corporate Governance
  • Enterprise Risk Management (ERM)

Indicative learning resources - Basic reading


  • Risk in Financial Services (Investment Operations Certificate) Workbook Ed (most recent), the Chartered Institute for Securities and Investment.
  • Saunders and Cornett (2018), Financial Institutions Management: A Risk Management Approach, 9th Edition, McGraw-Hill.
  • Revision Express, CISI online, the Chartered Institute for Securities and Investment

Module has an active ELE page?


Indicative learning resources - Web based and electronic resources

Revision Express (CISI), online materials on ELE

Origin date


Last revision date