Bachelor of Commerce Honours: Financial Modelling

Purpose

The Purpose of this qualification is to equip qualifying learners with a range of technical, scientific and research skills in Operations Research and Financial Modelling to prepare them for research-based post graduate studies and to enable them to pursue a career in industry and commerce.

Rationale

There is a demand from both the private sector and academic sector for a Bachelor of Commerce Honours Degree: Financial Modelling. This Degree follows the Bachelor of Commerce Degree. The term "Financial Modelling" has market value and enjoys considerable academic standing. This qualification will provide quality academic and career-focused Postgraduate learning and research opportunities. It will contribute to the development of the research capacity and critical scholarship of postgraduate learners. Techniques from Operations Research and its related fields are applied to building abstract representations (mathematical models) of financial decision-making situations, many of which are inherently stochastic in nature.

It is assumed that learners

• Have good reading and writing skills in English.
• Can analyse and respond to a variety of texts.
• Are able to learn independently in an Open and Distance Learning context (ODL) with minimum support.

Recognition of Prior Learning

Recognition of Prior Learning can be used to grant

• Admission to learners who do not meet the minimum admission criteria.
• Credits towards the qualification.

Recognition of Prior Learning must be carried out in accordance with the principles laid down in the University of South Africa (Unisa) Recognition of Prior Learning Policy.

Access to the Qualification

A relevant Bachelor's Degree or an equivalent qualification which includes Operations Research or Quantitative Management III for which the learner has obtained an average of at least 60%.

The qualification has seven compulsory modules, all at NQF Level 8 and totalling 132 credits

• Research Methodology, 12 credits.
• Research Support Tools, 12 credits.
• Research Project, 24 credits.
• Stochastic Modelling, 24 credits.
• Financial Modelling 1, 24 credits.
• Financial Modelling 2, 24 credits.
• Forecasting, 12 credits.

1. Engage in critical and creative thinking showing a comprehensive and systematic knowledge basis, having a coherent and critical understanding of the principles, theories and research methods of Operations Research and Financial Modelling.
2. Apply appropriate Operations Research and Financial Modelling skills and techniques to complex and real-world problems and operate effectively in complicated but sometimes ill-defined contexts.
3. Plan and conduct research in the field of Financial Modelling, by utilising the relevant theoretical research principles and reflecting on the research undertaken.
4. Demonstrate the ability to think contextually, i.e., reflect on learning from individual experience and academic disciplines in relation to scientific, technological and economic realities, locally and globally.
5. Demonstrate efficient and effective information retrieval and processing skills and the ability to effectively present and communicate academic work.
6. Manage learning tasks autonomously, professionally and ethically and display a high level of intellectual independence.

Critical Cross-Field Outcomes

This qualification promotes, in particular, the following Critical Cross-Field Outcomes

• Identify and solve problems and make decisions using critical and creative thinking: It is expected from the learner to display the ability to applying comprehensive mathematical principles, methodologies and techniques to do the analytical consultation for all levels of management in organisations, as is customarily expected from an operations researcher in financial modelling.
• Work effectively with others as members of a team, group, organisation or Community: It is expected from the learner to be able and willing to accept work instructions for multidisciplinary projects, to interpret these correctly and to request assistance in an appropriate manner as a

member of a team.

• Organise and manage self and own activities responsibly and effectively: In making the necessary preparations for establishing a proper procedure, the learner must indicate what prerequisites are required and must be able to communicate this in writing.
• Collect, analyse, organise and critically evaluate information: It is expected from the learner to be able to extract information from various sources and through examination of data relevant to modelling processes.
• Communicate effectively using visual, mathematical and/or language skills in the modes of oral and/or written presentations: It is expected from the learner to be able to present and communicate information and opinions related to the field of Operations Research and Financial Modelling in well-structured arguments, showing sensitivity for the audience's background and appropriately using academic and professional discourse.
• Demonstrate an understanding of the world as a set of related systems by recognising that problem-solving contexts do not exist in isolation: It is expected from the learner to be able to identify varying and diverse contexts in which Financial Modelling can be applied.
• Show capacity to reflect on own learning: It is expected from the learner to be able to operate in variable and unfamiliar learning contexts, requiring responsibility and initiative; a capacity to self-evaluate, identify and address personal learning requirements and to effectively interact in a learning group.

The following Assessment Criteria are applied in an integrated way to determine competence in the Exit Level Outcomes

• Apply technical writing techniques and use LaTeX to type text and mathematics in order to present technical reports correctly and accurately.
• Choose, formulate, solve and present a report on a project in the field of Financial Modelling, which addresses relevant and contemporary problems in the field of financial and risk management.
• Demonstrate understanding and knowledge of the introductory theories of stochastic modelling and their applications in Markov chains, counting processes, queues and reliability theory in order to acquire background knowledge necessary for constructing models, designing and analysing algorithms in the fields of Operations Research and Financial Modelling.
• Demonstrate understanding of the derivative trading and modelling environment with regard to the characteristics of derivatives, the modelling and pricing of derivatives and the use of futures and options in managing and reducing risks through a sound knowledge of arbitrage theory and the risk-neutral pricing method.
• Demonstrate understanding of the mathematical modelling of portfolio risk and financial price processes.
• Utilise the theory and techniques of forecasting models to identify the most suited forecasting model to predict a certain outcome in a data set and thereby solve real world problems.

Integrated Assessment

All assessment will integrate knowledge, skills, attitudes and applied competence, using both formative and summative assessment tools and methods.