Programme: BA (Hons) Finance and Investment Management (Newcastle Cohort)
BA (Hons) International Banking and Finance (Newcastle Cohort)
BA (Hons) International Banking and Finance (London Cohort)
BA (Hons) International Banking and Finance (Qatar Cohort)
Module Code: AF6007/LD6010
Module Title: Banking Risk 2
Distributed on: Assessment
Submission Time
and Date: 13th May 2020 by 23.59 hrs
Word Limit: 3,000 words
Weighting This coursework accounts for 100% of the total mark for this module
Submission of
Assessment
All assignments must be submitted to the correct Submission Point that
is located on the Module site under ‘Assessment’ using Turnitin.
Do not email assignments as attachments to the University unless asked
to do so by the programme administrator.
It is your responsibility to ensure that your assignment arrives before the
submission deadline stated above. See the University policy on late
submission of work (the relevant extract is set out below).
Electronic Management of Assessment (EMA): Please ensure that you
submit to the correct submission point on Turnitin.
Instructions on Assessment:
The assessment for this module is by means of an assignment and this assignment accounts for
100% of the overall mark for the module. You must attempt both sections to meet the learning
outcomes.
Part A:
Using examples (Please choose one bank from either, HSBC Holdings PLC, Barclays PLC or
JPMorgan Chase & Co) you are required to present a report critically analysing and demonstrating
your understanding of the sources, measurement, management and regulatory infrastructure of the
following three risks:
1. Interest Rate Risk
2. Liquidity Risk
3. Operational Risk
(2500 Words, 75 Marks)
Part B:
Based on the interest rate, liquidity and operational risks identified in Part A, construct a fraud risk
assessment framework of three associated risks that your chosen bank is currently exposed to or
will be exposed to in the foreseeable future. Pay particular attention to the current regulatory
infrastructure in which the bank operates.
(500 Words, 25 Marks)
Total for Assignment: 100 Marks
Assessment structure guidelines are as follows:
Length maximum of 3000 words (with a +/- 10% tolerance level) which must be stated.
Font – Arial 12, whole document being fully justified with 1.5 line spacing.
Titles and headings should be in bold. Section headings should be numbered e.g. 3.1.
Referencing must be APA 6th for example:
McMath, M. (2016) Liquidity mismatch and maturity transformation: a study on the UK
banks, International Journal of Risk and Return, Vol. 11(7), pp. 21-29
APA 6th Citation should be as:
McMath (2015) and if more than two authors should be as McMath et al., (2015).
Quotations of more than 2 lines must be indented and in italics with the reference and page
number stated. Shorter quotations should be in italics but do not need to be indented.
Tables and diagrams should be inserted at an appropriate point in the text and should be easily
readable.
If you are attaching any appendices, please keep it to the minimum.
Late submission of work
Where coursework is submitted without approval, after the published hand-in deadline, the
following penalties will apply.
For coursework submitted up to 1 working day (24 hours) after the published hand-in deadline
without approval, 10% of the total marks available for the assessment (i.e.100%) shall be
deducted from the assessment mark.
For clarity: a late piece of work that would have scored 65%, 55% or 45% had it been handed in on
time will be awarded 55%, 45% or 35% respectively as 10% of the total available marks will have
been deducted.
The Penalty does not apply to Pass/Fail Modules, i.e. there will be no penalty for late submission if
assessments on Pass/Fail are submitted up to 1 working day (24 hours) after the published handin deadline.
Coursework submitted more than 1 working day (24 hours) after the published hand-in deadline
without approval will be regarded as not having been completed. A mark of zero will be awarded
for the assessment and the module will be failed, irrespective of the overall module mark.
For clarity: if the original hand-in time on working day A is 12noon the 24 hour late submission
allowance will end at 12noon on working day B.
These provisions apply to all assessments, including those assessed on a Pass/Fail basis.
Word limits and penalties
If the assignment is within +10% of the stated word limit no penalty will apply.
The word count is to be declared on the front page of your assignment and the assignment cover
sheet. The word count does not include:
Title and
Contents page Reference list Appendices
Appropriate
tables, figures
Glossary Bibliography and illustrations
Quotes from
interviews and
focus groups.
Please note, in text citations [e.g. (Smith, 2011)] and direct secondary quotations [e.g. “dib-dab
nonsense analysis” (Smith, 2011 p.123)] are INCLUDED in the word count.
Assessment Brief – Level Six Undergraduate
Page 3 of 6
If this word count is falsified, students are reminded that under ARTA this will be regarded as
academic misconduct.
If the word limit of the full assignment exceeds the +10% limit, 10% of the mark provisionally awarded
to the assignment will be deducted. For example: if the assignment is worth 70 marks but is above
the word limit by more than 10%, a penalty of 7 marks will be imposed, giving a final mark of 63.
Students must retain an electronic copy of this assignment (including ALL appendices) and
it must be made available within 24hours of them requesting it be submitted.
Note: For those assessments or partial assessments based on calculation, multiple choice etc.,
marks will be gained on an accumulative basis. In these cases, marks allocated to each section will
be made clear.
Academic Misconduct
The Assessment Regulations for Taught Awards (ARTA) contain the Regulations and
procedures applying to cheating, plagiarism and other forms of academic misconduct.
The full policy is available at: https://www.northumbria.ac.uk/about-us/universityservices/academic-registry/quality-and-teaching-excellence/assessment/guidance-for-students/
You are reminded that plagiarism, collusion and other forms of academic misconduct as referred to
in the Academic Misconduct procedure of the assessment regulations are taken very seriously by
Newcastle Business School. Assignments in which evidence of plagiarism or other forms of
academic misconduct is found may receive a mark of zero.
You are advised to use the Plagiarism Checker prior to the formal submission of your
assignment.
Mapping to Programme Goals and Objectives
Programme (Level) Learning Outcomes that this module contributes to:
Knowledge & Understanding:
Assess knowledge of contemporary professional practice in business and management
informed by theory and research. [LO 1.1]
Appraise knowledge of business and management to complex problems in professional
practice in order to identify justifiable, sustainable and responsible solutions [LO 1.2]
Intellectual / Professional skills & abilities:
Critique creative and critical thinking skills that involve independence, understanding,
justification and the ability to challenge the thinking of self and others [LO 2.2]
Personal Values Attributes (Global / Cultural awareness, Ethics, Curiosity) (PVA):
Critique their personal skills and attitudes for progression to post-graduate contexts
including professional work, entrepreneurship and higher level study [LO 3.2]
Module Specific Assessment Criteria
Assessment Brief – Level Six Undergraduate
Page 4 of 6
You will be expected to demonstrate the following learning outcomes at the end of the Module:
Knowledge & Understanding:
Develop knowledge and understanding of interest rate, liquidity, and operational risks.
[MLO1]
Critically evaluate and develop an effective fraud assessment framework to prevent the
fraud associated with the banking risk in the banking and finance institutions. [MLO2]
Intellectual / Professional skills & abilities:
You will develop the quantitative as well as qualitative evaluation while measuring and
managing the interest rate, liquidity and operational risks. [MLO3]
Personal Values Attributes (Global / Cultural awareness, Ethics, Curiosity) (PVA):
You will become culturally and ethically aware of the impact of risk management systems
on organisational decision-making and their antecedents’ effects on the banking and
financial institutions. [MLO4]
Assessment Brief – Level Six Undergraduate
Page 5 of 6
Components Completely
Insufficient
0-5
Weak
6-9
Adequate
10-12
Good
13-15
Very Good
16-17
Excellent
18-22
Outstanding
23-25
A1. Interest
Rate Risk
Limited/No
knowledge of
interest rate
risk has been
demonstrated.
You haven’t
attempted to
example any
application
Your review of
the Interest
Rate risk lacks
sufficient
details, mainly
confined to
the definitions.
Further, you
have only
provided
limited
application
Your review of
the Interest
Rate Risk is
restricted to
background
research and
the lecture
content but
you have
mentioned the
relevant
regulations.
Further, you
have only
provided
limited
application
Your review of
the Interest Rate
Risk is
reasonably
researched
covering most of
the sources,
measurement
and management
with generally
sound arguments.
Further, your
application
examples show a
good level of
understanding.
Your review of the
Interest Rate Risk is
well researched
covering all key
sources (as well as
traditional theory),
measurement and
management with
rationalised
arguments. From your
research, It is clear
that you understand
the regulations. The
application examples
have been selective
to demonstrate your
understanding.
Your review of the
Interest Rate Risk is
critically researched
with insightful
arguments covering all
traditional theory, key
sources, measurement
and management. You
have demonstrated
further understanding
via your application
examples, which
highlight how your bank
addresses the
regulatory
requirements.
You have produced an
exemplary review of the
interest rate risk
literature, providing
critical arguments of
how banks address the
regulations on all
aspects of identifying
key sources,
measurement and
management. You have
fully understood how this
risk affects your bank via
your quantitative
examples and have
ascertained areas for
improvement.
A2. Liquidity
Risk
Limited/No
knowledge of
liquidity risk
has been
demonstrated.
You haven’t
attempted to
example any
application
Your review of
the Liquidity
risk lacks
sufficient
details, mainly
confined to
the definitions.
Further, you
have only
provided
limited
application
Your review of
the Liquidity is
restricted to
background
research and
the lecture
content but
you have
mentioned the
relevant
regulations.
Further, you
have only
provided
limited
application
Your review of
the Liquidity Risk
is reasonably
researched
covering most of
the sources,
measurement
and management
with generally
sound arguments.
Further, your
application
examples show a
good level of
understanding.
Your review of the
Liquidity Risk is well
researched covering
all key sources,
measurement and
management with
rationalised
arguments. From your
research, It is clear
that you understand
the regulations. The
application examples
have been selective
to demonstrate your
understanding.
Your review of the
Liquidity Risk is
critically researched
with insightful
arguments covering all
traditional theory, key
sources, measurement
and management. You
have demonstrated
further understanding
via your application
examples, which
highlight how your bank
addresses the
regulatory
requirements. Further,
you have understood
how market liquidity
risk affects your bank.
You have produced an
exemplary review of the
Liquidity risk literature,
providing critical
arguments of how banks
address the regulations
on all aspects of
identifying key sources,
measurement and
management. You have
fully understood how this
risk affects your bank via
your quantitative
examples and have
ascertained areas for
improvement.
Assessment Brief – Level Six Undergraduate
Page 6 of 6
A3.
Operational
Risk
Limited/No
knowledge
operational
has been
demonstrated.
You haven’t
attempted to
example any
application
Your review of
the
operational
risk lacks
sufficient
details, mainly
confined to
the definitions.
Further, you
have only
provided
limited
application
Your review of
the
Operational
Risk is
restricted to
background
research and
the lecture
content but
you have
mentioned the
relevant
regulations.
Further, you
have only
provided
limited
application
Your review of
the Operational
Risk is
reasonably
researched
covering most of
the sources,
measurement
and management
with generally
sound arguments.
Further, your
application
examples show a
good level of
understanding.
Your review of the
Operational Risk is
well researched
covering all key
sources (as well as
traditional theory),
measurement and
management with
rationalised
arguments. From your
research, It is clear
that you understand
the regulations. The
application examples
have been selective
to demonstrate your
understanding.
Your review of the
Operational Risk is
critically researched
with insightful
arguments covering all
traditional theory, key
sources, measurement
and management. You
have demonstrated
further understanding
via your application
examples, which
highlight how your bank
addresses the
regulatory
requirements.
You have produced an
exemplary review of the
operational risk
literature, providing
critical arguments of
how banks address the
regulations on all
aspects of identifying
key sources,
measurement and
management. You have
fully understood how this
risk affects your bank via
your quantitative
examples and have
ascertained areas for
improvement.
B. Fraud
Risk
Framework
Limited
discussion of
fraud theory.
Limited/No
knowledge
regarding the
Fraud Risk
Framework.
Your review of
the fraud risk
theory lacks
sufficient
details, mainly
confined to
the definitions.
Further, the
Fraud Risk
Frame work is
only a basic
attempt
Your review of
the fraud risk
theory is
restricted to
background
research and
the lecture
content. The
Fraud Risk
Frame Work
has been
applied
correctly but
needs further
explanation
You have
provided good
understanding of
the fraud risk
theory including
relevant
extensions and
arguments. Your
Fraud Risk
Framework
shows you have
investigated your
banks examples
using relevant
media/academic
sources.
Your literature review
of the fraud risk
theory is well
researched covering
all rationalised
arguments. Very good
understanding
presented in
constructing an
effective Fraud Risk
Assessment
Framework to
mitigate against
potential fraud risks
for the bank of your
choice
Your literature review of
the fraud risk theory is
comprehensively
researched covering all
rationalised and
insightful arguments.
An excellent approach
to construct an effective
Fraud Risk Assessment
Framework to mitigate
against potential fraud
risks for the bank of
your choice. Further
you have drawn from
wider examples to
compare and contrast
You have produced an
exemplary review of the
fraud risk theory and
legal environment
literature, covering all
rationalised and
insightful arguments. An
outstanding approach to
construct an effective
Fraud Risk Assessment
Framework to highlight
areas for improvement
and mitigate against
potential fraud risks for
the bank of your choice.
Further, you have used
wider examples to
critically evaluate your
banks examples.