Risk Management
RMI 5051: Managing Risk
Syllabus
Compressed Section
The course meets Saturday, September 7 and Sunday, September 8 from 9:00 AM to 5:00 PM. Office hours are by appointment.
Course Objectives
Effective risk management is an integral part of an efficient and successful organization. Risk Management cuts across all disciplines within an organization. It does not take place at the functional level, or the business unit level, but throughout the organization. For a firm to be successful in today's global economy, risk management must be tightly tied to firm strategy. Enterprise risk management identifies and treats all serious risks across an organization in a coordinated way. Risk Management allows the firm to achieve its strategic objectives, and is focused on maximizing the firm’s value, rather than avoiding adverse consequences. Risk Management requires the firm to identify opportunities for gain and exposures to unexpected loss. The firm must then assess the potential consequences, and plan to finance the consequences of an adverse event if it happens.
This course is designed to introduce the risk management process in the context of general corporate management. Each step in the process will be reviewed in detail, including setting the risk management context, identification of risk, measurement and analysis of potential impact, and appropriate treatment techniques. Risk financing options will be discussed in the context of global insurance and alternative capital markets.
At the end of the course you will:
Understand the goals of risk management and international risk management standards
Understand each step in the risk management process
Identify the scope of risks facing firms, including strategic, hazard, and financial risks
Understand the tools used to mitigate risk
Understand the role of insurance and global capital markets in risk management
Readings
A set of readings drawn from industry, public,
Syllabus
Compressed Section
The course meets Saturday, September 7 and Sunday, September 8 from 9:00 AM to 5:00 PM. Office hours are by appointment.
Course Objectives
Effective risk management is an integral part of an efficient and successful organization. Risk Management cuts across all disciplines within an organization. It does not take place at the functional level, or the business unit level, but throughout the organization. For a firm to be successful in today's global economy, risk management must be tightly tied to firm strategy. Enterprise risk management identifies and treats all serious risks across an organization in a coordinated way. Risk Management allows the firm to achieve its strategic objectives, and is focused on maximizing the firm’s value, rather than avoiding adverse consequences. Risk Management requires the firm to identify opportunities for gain and exposures to unexpected loss. The firm must then assess the potential consequences, and plan to finance the consequences of an adverse event if it happens.
This course is designed to introduce the risk management process in the context of general corporate management. Each step in the process will be reviewed in detail, including setting the risk management context, identification of risk, measurement and analysis of potential impact, and appropriate treatment techniques. Risk financing options will be discussed in the context of global insurance and alternative capital markets.
At the end of the course you will:
Understand the goals of risk management and international risk management standards
Understand each step in the risk management process
Identify the scope of risks facing firms, including strategic, hazard, and financial risks
Understand the tools used to mitigate risk
Understand the role of insurance and global capital markets in risk management
Readings
A set of readings drawn from industry, public,