From: web-form@Oswego.EDU
Sent: Monday, April 28, 2008 1:42 PM
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Subject: Web Form: Course_Submission

Department_Chair: Charles Spector
Department_Chair_Email: spector@oswego.edu
Additional_Contact: John MacDonald
Additional_Contact_Email: jmacdon1@oswego.edu
Course_Number: RMI 450
Course_Type: New Course
Course_Title: Risk Management Problems and Cases

Catalog_Description: This course is designed to prepare students for entry-level work in corporate risk management.  The emphasis is on organizational decision making under conditions of uncertainty.  This course builds upon previous RMI course work and emphasizes the application of RMI concepts.

Prerequisites: RMI 300 and at least two other RMI courses.
Sp_every Spring: Yes
Semester_Hours: 3

Justification: 
Required capstone course for the RMI major as well as a means to see sophisticated modeling and applications of hedging, in particular. Previous courses in the major provided a significant body of knowledge relating to risk management, but did not provide significant modeling/forecasting techniques or integrated scenarios for risk management analysis.  This course allows the major to experience in-depth analysis, both computer-based modeling and real world (usually non-insurance) organization risk management.  

Course_Objectives: 
At the conclusion of the course, students should be able to:
A.	Map risks for an organization
B.	Identify risk preferences and how these impact risk management decision making
C.	Produce hedge ratios and estimate their effectiveness
D.	Determine the appropriate risk management strategy
E.	Explain and demonstrate some computer-based risk forecasting models
F.	Understand how risk management may create new risks or increase certain existing risks
G.	Articulate best global risk management practices.

Course_Description: 
A.	Risk mapping
B.	Risk Modeling
C.	Risk Analysis and Loss Forecasting
D.	Loss Control and Decision Making
E.	Risk Preferences and Utility Theory
F.	Risk Financing Options (especially derivative use)
G.	Enterprise Risk Management (ERM) Practices and Lessons Learned

Resources: Faculty resources are adequate at this time and no additional equipment and/or library resources are anticipated, aside from standard updating of library materials, particularly text sources on modeling.

Bibliography: 
Cummins, J.D., and A. M. Santomero, Changes in Life Insurance Industry: Efficiency, Technology, and Risk Management, Kluwer Academic Publishers: Norwell, MA, 1999.

Ferguson, Tamela D., Mark S. Dorfman, and William L. Ferguson, ‘Risk Management and Insurance-Related Journals: A Survey of Risk and Insurance Academics,” Risk Management and Insurance Review 8(1), 65, 2005.

Kwon, W. Jean and Harold D. Skipper, Risk Management and Insurance: Perspectives in a Global Economy, Blackwell Publishing: Oxford, UK, 2007.

Marthinsen, John, Risk Takers, Uses and Abuses of Financial Derivatives, Second Edition, Pearson Prentice Hall:  Boston, MA, 2008.

Millette, M. J., J. Kumar, O.T. Chaudhary, J. M. Keating, and S. I. Schreiber, Securitization of Life Insurance Businesses, in M. Lane, ed Alternative Risk Strategies, Risk Books: London, 2002.

Moody’s Investors Service, Moody’s Analysis of Life Insurance Embedded Values and Their Securitization, London, 2004.

Mun, Jonathan, Modeling Risk, Wiley, Hoboken, NJ, 2006. 

Pickett, K.H. Spencer, Auditing the Risk Management Process, Wiley, Hoboken, NJ, 2005.

Sadgrove, Kit, The Complete Guide To Business Risk Management, Gower Publishing Company, Aldershot, UK 2005. 

Other_Comments: Capstone course in proposed new major, hence RMI designation.
IP_Adress: 129.3.72.206