AMME5105: Risk Management Analysis (2019 - Semester 1)

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Unit: AMME5105: Risk Management Analysis (6 CP)
Mode: Normal-Day
On Offer: Yes
Level: Postgraduate
Faculty/School: School of Aerospace, Mechanical & Mechatronic Engineering
Unit Coordinator/s: Dr Fiford, Rod
Session options: Semester 1
Versions for this Unit:
Campus: Camperdown/Darlington
Pre-Requisites: None.
Brief Handbook Description: Syllabus covers methods involved in quantifying and measuring risk. Risk measurement techniques; Risk factors; Linear and nonlinear risks; Volatility; Scenario analysis; Stress testing; Value at risk (VAR) frameworks and their limitations. Comparison will be made to real world outcomes using case studies. The handling of "unknown unknowns" and how to incorporate these into a risk analysis will be investigated. An introduction to common financial instruments will be presented.
Assumed Knowledge: None.
Department Permission Department permission is required for enrollment in this session.
Lecturer/s: Cohen, Roger
Timetable: AMME5105 Timetable
Time Commitment:
# Activity Name Hours per Week Sessions per Week Weeks per Semester
1 Workgroup 3.00 1 13
T&L Activities: Lectures. Class discussion sessions. Simple in class questions. Group assignment and presentation. Individual assignments.

Attributes listed here represent the key course goals (see Course Map tab) designated for this unit. The list below describes how these attributes are developed through practice in the unit. See Learning Outcomes and Assessment tabs for details of how these attributes are assessed.

Attribute Development Method Attribute Developed
Ability to apply appropriate computational methodolgy to analyse risk in an engineering context. (1) Maths/ Science Methods and Tools (Level 4)
Ability to apply computation methods to generic engineering situation. Ability to define input parameters and make estimates for an ill defined problem. (2) Engineering/ IT Specialisation (Level 4)
Ability to undertake a small project, identifying all the risks involved. (7) Project and Team Skills (Level 3)
Understand the limits of a project based on the analysis of acceptable risk. (8) Professional Effectiveness and Ethical Conduct (Level 4)

For explanation of attributes and levels see Engineering & IT Graduate Outcomes Table 2018.

Learning outcomes are the key abilities and knowledge that will be assessed in this unit. They are listed according to the course goal supported by each. See Assessment Tab for details how each outcome is assessed.

(8) Professional Effectiveness and Ethical Conduct (Level 4)
1. Determine acceptable levels of financial risk and ways to manage or mitigate where unacceptable.
(7) Project and Team Skills (Level 3)
2. Complete and properly document a group project. Partake in group discussions and be able to articulate and present your work and generate and answer questions from the audience.
(2) Engineering/ IT Specialisation (Level 4)
3. Understand industry practice around risk quantification.
(1) Maths/ Science Methods and Tools (Level 4)
4. Perform calculations to quantify risk under various scenarios.
Assessment Methods:
# Name Group Weight Due Week Outcomes
1 Assignments No 30.00 Multiple Weeks 1, 2, 3, 4,
2 Group Project Presentations Yes 30.00 Multiple Weeks 1, 2, 3,
3 Final Exam No 35.00 Exam Period 1, 2, 3, 4,
4 Class participation - individual and group No 5.00 Multiple Weeks
Assessment Description: Students will discuss and analyse a variety of case studies and scenarios as part of their weekly sessions. Assignments/presentations will consist of a combination of individual and group work.

The Final Exam will be calculation and short answer based.
Grading:
Grade Type Description
Standards Based Assessment Final grades in this unit are awarded at levels of HD for High Distinction, DI (previously D) for Distinction, CR for Credit, PS (previously P) for Pass and FA (previously F) for Fail as defined by University of Sydney Assessment Policy. Details of the Assessment Policy are available on the Policies website at http://sydney.edu.au/policies . Standards for grades in individual assessment tasks and the summative method for obtaining a final mark in the unit will be set out in a marking guide supplied by the unit coordinator.
Policies & Procedures: See the policies page of the faculty website at http://sydney.edu.au/engineering/student-policies/ for information regarding university policies and local provisions and procedures within the Faculty of Engineering and Information Technologies.

Note that the "Weeks" referred to in this Schedule are those of the official university semester calendar https://web.timetable.usyd.edu.au/calendar.jsp

Week Description
Week 1 Note - content and timings may vary as we are reliant on commitment from external practitioners.
Lecture/Tutorial: Course introduction, context and background. Overview of business and financial risk. How financial and business risk relate to engineering.
Week 2 Lecture/Tutorial: No Lecture. Tutorial Exercise TBA.
Week 3 Lecture/Tutorial: Introduction to financial instruments. Valuation, volatility and hedging. Introduction to risk appetite and your personal attitude to risk. Behaviour and risk taking.
Tutorial: Preparation for group work.

Exercises.
Week 4 Lecture/Tutorial: External industry practitioner (tbc) - Business Risk Management. Equities, bonds and futures.
Tutorial: Topic for group work to be finalised and approved.
Week 5 Lecture/Tutorial: Risk as an engineering system. Quantifying. risks. Stress testing,
Tutorial Assessment: Proposal for group work due
Week 6 Lecture/Tutorial: Risk as an engineering system. Quantifying. risks. Value at risk (VAR), Stress testing, Hedging. (continued)
Week 7 Lecture/Tutorial: Asset liability management, the treasury function, foreign exchange.
Week 8 Lecture/Tutorial: Industry sectors I.*
* One or more practitioners from industry to present (to be confirmed).
Week 9 Lecture/Tutorial: Industry sectors II.*
External industry practitioner (confirmed) - Trading/Dealing Room Risk
Week 10 Industry Practitioner TBC
Lecture/Tutorial: Industry sectors III.*
Week 11 Lecture/Tutorial: Insurance. Hedging and managing risk.
Week 12 Lecture/Tutorial: Case studies.
Week 13 Lecture/Tutorial: Revision and exam preparation.
Exam Period Assessment Due: Final Exam

Course Relations

The following is a list of courses which have added this Unit to their structure.

Course Year(s) Offered
Mechanical Mid-Year 2016, 2017, 2018, 2019, 2020
Mechanical/ Project Management 2019, 2020
Mechanical 2015, 2016, 2017, 2018, 2019, 2020
Mechanical / Arts 2015, 2016, 2017, 2018, 2019, 2020
Mechanical / Commerce 2015, 2016, 2017, 2018, 2019, 2020
Mechanical / Music Studies 2016, 2017
Mechanical / Project Management 2015, 2016, 2017, 2018
Mechanical / Science 2015, 2016, 2017, 2018, 2019, 2020
Mechanical/Science(Health) 2018, 2019, 2020
Mechanical / Law 2015, 2016, 2017, 2018, 2019, 2020
Master of Engineering 2015, 2016, 2017, 2018, 2019, 2020
Mechanical/Science (Medical Science Stream) 2018, 2019, 2020
Master of Professional Engineering (Accelerated) (Mechanical) 2019, 2020
Master of Professional Engineering (Mechanical) 2015, 2016, 2017, 2018, 2019, 2020
Mechanical / Medical Science 2016, 2017

Course Goals

This unit contributes to the achievement of the following course goals:

Attribute Practiced Assessed
(8) Professional Effectiveness and Ethical Conduct (Level 4) Yes 25.25%
(7) Project and Team Skills (Level 3) Yes 25.25%
(2) Engineering/ IT Specialisation (Level 4) Yes 28.25%
(1) Maths/ Science Methods and Tools (Level 4) Yes 16.25%

These goals are selected from Engineering & IT Graduate Outcomes Table 2018 which defines overall goals for courses where this unit is primarily offered. See Engineering & IT Graduate Outcomes Table 2018 for details of the attributes and levels to be developed in the course as a whole. Percentage figures alongside each course goal provide a rough indication of their relative weighting in assessment for this unit. Note that not all goals are necessarily part of assessment. Some may be more about practice activity. See Learning outcomes for details of what is assessed in relation to each goal and Assessment for details of how the outcome is assessed. See Attributes for details of practice provided for each goal.