Overview

To examine the identification, measurement, control and financing of pure risks in business organisations.

The module includes:

The nature of risk management (Traditional vs. Enterprise risk management); Risk identification (Techniques for identifying 'what could go wrong'); The firm's loss exposures (Asset, Personnel, Liability and Consequential loss risks); Risk measurement and probability distributions (Numerical techniques for measuring risks); Risk control tools (Risk Avoidance, Separation, Combination, Transfer and Loss Control); Risk financing (Techniques for retaining and transferring risk financing); Insurance and the alternatives (Optimum use of insurance in relation to other risk management tools); Legal aspects of insurance and insurance contracts (Laws relating to Insurance suppliers and purchasers); Dealing with insurers (Good practice for insurance purchasers when arranging cover).

Assessment Strategy

-threshold -D- to D+ (40-49%): No major omissions or inaccuracies in the deployment of information/skills. Some grasp of theoretical/conceptual/practical elements. Integration of theory/practice/information present intermittently in pursuit of the assessed work's objectives.

-good -B- to B+ (60-69%): Very good performance Most of the relevant information accurately deployed. Good grasp of theoretical/conceptual/practical elements. Good integration of theory/practice/information in pursuit of the assessed work's objectives. Evidence of the use of creative and reflective skills.

-excellent -A- to A+ (70%+): Outstanding Performance. The relevant information accurately deployed. Excellent grasp of theoretical/conceptual/practice elements. Good integration of theory/practice/information in pursuit of the assessed work's objectives. Strong evidence of the use of creative and reflective skills.

-another level-C- to C+ (50-59%): Much of the relevant information and skills mostly accurately deployed. Adequate grasp of theoretical/conceptual/practical elements. Fair integration of theory/practice/information in the pursuit of the assessed work's objectives. Some evidence of the use of creative and reflective skills.

Learning Outcomes

• Analyse and evaluate uses and limitations of probability concepts and statistics for making risk management decisions.

• Critically evaluate different methods for dealing with pure risk effectively.

• Critically evaluate the nature and effectiveness of alternative risk management strategies.

• Evaluate the effectiveness of alternative risk management techniques in order to create an optimal risk management strategy.

• Evaluate the uses and limitations of insurance as a risk management device.

• Understand risk control and risk financing techniques.