This unit provides an overview of investment and risk, and proposes strategies to manage the risks of different investment practices. Students will discriminate between different types of risks encountered by contemporary organisations and investigate models designed to help manage those risks. Students will apply statistics to assess distribution of asset returns, measure risk, measure the components of total risk, measure the risk in portfolio construction and management, the efficient market concept, option pricing models and forecast volatility.

Unit details

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Unit code:

Learning Outcomes

On successful completion of this unit, students will be able to:
  1. Exhibit an understanding of different types of risks faced by corporate entities;  
  2. Appraise different theories regarding the operation of financial markets and their impact on predictions of returns and volatilities of different financial assets;  
  3. Critically review a range of models to quantify risk and apply them to local and global contexts;  
  4. Exhibit effective interpersonal skills to collaborate with and influence team members, respecting the diversity of team contributions and commitment to achieving team outcomes whilst assuming responsibility and accountability for their own learning and professional practice; and  
  5. Elucidate independent expositions of knowledge and ideas to clearly, coherently and succinctly address complex and unpredictable problems.  


Melbourne campuses

Students studying under the VU Block Model.

Assessment type Description Grade
Test Multiple Choice (Theoretical and/or Practical) 10%
Assignment Group Assignment in risk modelling 30%
Case Study Case studies in risk attribution and derivative applications 20%
Test Short Answer Questions (Practical) 40%

Other locations

Assessment type Description Grade
Test Multiple Choice and Short Answers 20%
Assignment Assignment 20%
Examination Final Examination 60%

Required reading

Quantitative financial risk management.
Miller, M. B. (2019).
Hoboken, New Jersey: John Wiley & Sons, Inc. (Wiley finance series).

Where to next?

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