Corporate Risk Management
Run by Bangor Business School
15 Credits or 7.5 ECTS Credits
Organiser: Dr David Ayling
Overall aims and purpose
To provide an understanding of pure risk and its management; to provide an analytical background to identifying, measuring, controlling and financing loss exposures; to examine decision rules for choosing between alternative risk management strategies; and to apply risk management concepts and techniques in practical situations.
The nature of risk management; Risk identification; Business loss exposures; Risk measurement; Probability distributions (uses and limitations); Risk control tools; Risk financing tools; Influence of the market on risk management decisions; The interdependence of insurance and loss prevention decision; Insurance versus alternatives.
thresholdNo 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
goodMuch 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. High Standard: 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.
excellentAn outstanding performance, exceptionally able. 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.
- Understand the risk management function in business, risks faced by business organisations, risk management objectives and the interaction of risk management with other business functions.
- Understand principles of risk identification and measurement (including the uses and limitations of probability distributions) and costs and benefits of risk control and financing techniques.
- Understand the uses and limitations of insurance within the overall risk management strategy and interactions between insurance and internal risk management activities.
|Coursework 2,500 words||40|
|Final Exam Mark||60|
Teaching and Learning Strategy
3 hours of lectures per week.
- Literacy - Proficiency in reading and writing through a variety of media
- Numeracy - Proficiency in using numbers at appropriate levels of accuracy
- Self-Management - Able to work unsupervised in an efficient, punctual and structured manner. To examine the outcomes of tasks and events, and judge levels of quality and importance
- Exploring - Able to investigate, research and consider alternatives
- Information retrieval - Able to access different and multiple sources of information
- Critical analysis & Problem Solving - Able to deconstruct and analyse problems or complex situations. To find solutions to problems through analyses and exploration of all possibilities using appropriate methods, rescources and creativity.
- Management - Able to utilise, coordinate and control resources (human, physical and/or financial)
- Argument - Able to put forward, debate and justify an opinion or a course of action, with an individual or in a wider group setting
- Self-awareness & Reflectivity - Having an awareness of your own strengths, weaknesses, aims and objectives. Able to regularly review, evaluate and reflect upon the performance of yourself and others
Subject specific skills
- knowledge of theories and empirical evidence concerning financial management, risk and the operation of capital markets (in cases of degrees with significant finance content).
- Abstraction. From the study of economic principles and models, students see how one can abstract the essential features of complex systems and provide a useable framework for evaluation and assessment of the effects of policy or other exogenous events. Through this, the typical student will acquire proficiency in how to simplify while still retaining relevance. This is an approach that they can then apply in other contexts, thereby becoming more effective problem-solvers and decision-makers.
- Analysis, deduction and induction. Economic reasoning is highly deductive, and logical analysis is applied to assumption-based models. However, inductive reasoning is also important. The development of such analytical skills enhances students' problem-solving and decision-making ability.
- Quantification and design. Data, and their effective organisation, presentation and analysis, are important in economics. The typical student will have some familiarity with the principal sources of economic information and data relevant to industry, commerce, society and government, and have had practice in organising it and presenting it informatively. This skill is important at all stages in the decision-making process.
- Framing. Through the study of economics, a student should learn how to decide what should be taken as given or fixed for the purposes of setting up and solving a problem, i.e. what the important 'parameters' are in constraining the solution to the problem. Learning to think about how and why these parameters might change encourages a student to place the economic problem in its broader social and political context. This 'framing' skill is important in determining the decision-maker's ability to implement the solutions to problems.
- An understanding of the financing arrangements and governance structures of business entities, and an appreciation of how theory and evidence can be combined to assess the effectiveness and efficiency of such arrangements (e.g. decisions as to sources of finance and financial structure; the pricing of corporate securities; the market for corporate control; corporate governance structures and mechanisms; financial planning and international dimensions of finance).
- Problem solving and critical analysis: analysing facts and circumstances to determine the cause of a problem and identifying and selecting appropriate solutions.
- Research: the ability to analyse and evaluate a range of business data, sources of information and appropriate methodologies, which includes the need for strong digital literacy, and to use that research for evidence-based decision-making.
- Numeracy: the use of quantitative skills to manipulate data, evaluate, estimate and model business problems, functions and phenomena.
- Articulating and effectively explaining information.
- Conceptual and critical thinking, analysis, synthesis and evaluation.
- Self-management: a readiness to accept responsibility and flexibility, to be resilient, self-starting and appropriately assertive, to plan, organise and manage time.
Courses including this module
Compulsory in courses:
- N3AV: MA Finance year 1 (MA/FIN)
- N3CP: MA Finance (10 month) year 1 (MA/FIN10)
- N3CM: MSc Finance (10 month) year 1 (MSC/FIN10)
- N3CR: MSc Investment Management (10 month) year 1 (MSC/IMGT10)
Optional in courses:
- M1AL: LLM Law and Banking year 1 (LLM/LB)
- N3CH: MA Banking & Finance (Chartered Banker) year 1 (MA/BFCB)
- N3AB: MA Banking & Finance year 1 (MA/BIF)
- N3BE: MA Islamic Banking and Finance year 1 (MA/IBF)
- N2AQ: MA Management and Finance year 1 (MA/MANFIN)
- N3AD: MBA Banking and Finance year 1 (MBA/BIF)
- N3BV: MBA Finance year 1 (MBA/FIN)
- N3BM: MBA Islamic Banking and Finance year 1 (MBA/IB)
- N1BG: MBA International Business year 1 (MBA/INTBUS)
- N2AN: MBA Management year 1 (MBA/M)
- N4AK: MSc Accounting and Banking year 1 (MSC/ACB)
- N4AJ: MSc Accounting year 1 (MSC/ACC)
- N4AG: MSc Accounting and Finance year 1 (MSC/ACCFIN)
- N3AX: MSc Banking and Finance year 1 (MSC/BANKFIN)
- N3AJ: MSc Finance year 1 (MSC/FINANCE)
- N3BF: MSc Islamic Banking and Finance year 1 (MSC/IBF)
- N3CC: MSc Investment Management year 1 (MSC/IMGT)
- N2AO: MSc Management and Finance year 1 (MSC/MANFIN)