FINC 632: Risk Management

Prerequisite: MBA status or permission of the instructor

Credit Hours: (3)

Provides a study of the management of nonspeculative risks in business and the several management tools available to deal with them. Examines cases and situations which require risk management decisions. Students review in detail the text's risk management analysis of a business organization.

Detailed Description of Content of Course

Introduction to Risk and Risk Management

• The Risk Management Environment
• Risk Managements' Function in Business
• Business Risk Exposures
• Measurement of Risk Magnitude
• Estimation Probability of Losses

Methods of Handling Risks

• Assumption
• Transfer (non insurance)
• Reduction
• Probability theory used in risk management
• Self insurance basics
• Hold-harmless agreements
  
• Proper use of insurance in risk management

Business Risk Exposures

• Property
• Liability
• Business Interruption
• Employee Benefit
• Social Insurance
• Key Personnel

Insurance

• Legal Aspects of Insurance
• Insurance Contract Analysis
• Economic us of insurance
• Government regulation of insurance

Cases and situations - study and analysis

Detailed Description of Conduct of Course

The course consists of lecture, written business memoranda assigned topics, a term paper, and presentations of memoranda material. The class is writing intensive, with six business memoranda and a term-paper.

Goals and Objectives of the Course

Having successfully completed the course the student will be able to:

• identify the risk exposures facing business firm, professional organizations, and individuals
• apply the law of probability to risk management decision making
• understand the basic methods of dealing with business and personal risk exposures
• understand the legal aspects of insurance contracts
• understand the proper use of insurance in risk management

Assessment Measures

Graded assignments may include in-class tests, a final examination, quizzes, the assignment and presentation of risk management exercises, papers, and class preparation and participation.

Other Course Information

Review and Approval

DATE ACTION APPROVED BY
March 1999 Revised