AFRM Assignment 1

Deadline: Thursday 23rd September, 3pm UK time

This coursework focuses on a new area of risk management and financial markets and will require some research. Read the following article from the “Current issues in financial markets” section of the FRM readings:!/frm/readings/required:

“Chapter 5: Climate Change: Physical Risk and Equity”, in Global Financial Stability Report: Markets in the Time of COVID-19, May 2020

This article presents a brief summary of the challenges of climate change on financial stability. Choose a topic or your preference discussed in this article and research it more in detail. You are not meant to summarise the paper, but to go in depth in one (or some) of the topics discussed on it and that you find particularly interesting. The references cited in this paper might be useful, but you are encouraged to search for extra references beyond that. Your essay should discuss to some extent the impact of FinTech on risk management. The word limit is 1500 words.


All sources must be fully acknowledged in the main body of the text (in-text citation) and in the References section at the end of the assessment. Referencing must fully adhere to the Harvard (author-year) format. Improper or non-existing referencing can lead your work to be derived as a suspected plagiarism case. Tables and graphs should also be properly referenced if they are not made by the author of the essay. The text in the References section of your answer do not count towards the word limit.

Getting Started!

You can use the examples in the lectures and seminars as starting point, and reference to understand the use of the tools needed to solve this coursework. As said above, the references cited in the article should provide more information on the topic you have chosen. For more general knowledge you can refer to any of the items in the course’s reading list. In particular the following two would be useful:

  • Hull, J., 2015, Risk management and financial institutions, fourth edition, Wiley
  • Hull, J., 2012, Options, futures and other derivatives, eighth edition, Pearson.