University of Technology SydneyHandbook 2008

25826 Risk Management

Faculty of Business: Finance and Economics
Credit points: 3 cp

Subject level: Postgraduate

Result Type: Grade and marks

Handbook description

This subject develops an understanding of the concepts and processes utilised in the management of corporate risk exposures. It directs attention to the analytical processes by which corporate risk exposures may be identified and the availability of strategies to control identified exposures.

Subject objectives/outcomes

On completion of this subject, students should be able to:

  1. Understand the theoretical considerations underpinning the corporate risk management process
  2. Understand the Australian Risk Management Standard AS/ANZ 4360:1995
  3. Evaluate the use of the ARM Standard to provide an analytical framework in insurance
  4. Understand the range of risk treatment strategies, the opportunities and constraints influencing the application of particular strategies and emerging risk management issues.

Contribution to graduate profile

This 3-credit-point postgraduate subject introduces students to the concept of corporate risk management and the outlines the analytical processes utilised in corporate risk management and the scope and methodologies of principal risk treatment strategies available to manage identified risks.

The subject directs attention to the fact that the corporate risk management process is dynamic and necessitates a holistic approach to the management of risk exposures and requires consideration of alternative risk management strategies other than the transfer of risk by insurance in this process.

Teaching and learning strategies

The subject will be taught in a combined lecture/tutorial format with extensive use being made of Case Studies in the issue identification and management processes.

Content

  • An overview of the corporate risk management process, inputs and outcomes.
  • The establishment of an analytical framework – desired characteristics.
  • The Australian Risk Management Standard AS/ANZ 4360:1999 – an effective analytical framework?
  • The risk management process, identification, analysis, assessment, management, treatment strategies, performance monitoring and review.
  • Risk exposure categories, consequences and treatment strategies.

Assessment

Class Test (Individual)25%
The class test is designed to assess students' understanding of the theories and concepts to demonstrate that students have met objective 1.
Assignment and Case Study (Individual)25%
This will assess students' understanding of the concepts of risk management in a practical case study. This assignment will allow students to demonstrate that they have met objective 2 and 3.
Final Examination (Individual)50%
This exam will test students' understanding of the theory and their ability to apply the theory. This will enable students to demonstrate that they have met objectives 1-4.

Recommended text(s)

Dickson, G.C.A., (1991) Corporate Risk Management, Witherby, London.

Indicative references

Vaughan E.J., (1997) Risk Management, Wiley, New York.

Harrington, S.E, Niehaus G.R, Niehaus G., (1998) Risk Management Insurance, McGraw Hill, New York

Williams, C.A., Smith, M.L,Young,P.C., (1998) Risk Management and Insurance, Irwin, Boston

Skipper, D.H., (1998) International Risk and Insurance: An Environmental – Managerial Approach, Irwin, Boston.