MBA in Risk Management

Risk in Our Society Property & liability risks Perils, hazards Direct and indirect loss Pre and post-loss risk management Risk management process basics Law of large numbers introduced Reading: Chapter 1 Workshops Fire Slideshow (see BB) Austin City Limits Festival - handout (see BB) Software ‘rust’ risk to shareholder value (FT 12 10 2010) Other Resources: Online quiz Thermographic survey (HSB 2009) Indiana State Collapse Insurance and Risk Risk pooling, insurable risks v. hedging Accidental v. intentional, criminal Types or lines of insurance Value of insurance, bonding Insurer side: public policy and affordability/availability, indemnification, insurance product overview Undercurrents in pricing, markets in risk management Retaining risk, value of loss control Loss of value, economic v. non-economic losses Reading: Chapter 2 Financials, underwriting /pricing results, capacity and surplus (see BB) Risk Management and the CRO (see BB) Managing Your Risk (The Hartford) Risk Management Resources (Travelers) Construction Risk Management (checklist - AGC of America) (pdf) Introduction to Risk Mgmt Client Side: Components of the cost of risk Risk management process and analysis: (1) identification of exposures, hazards; (2) assessment of alternatives, use of forecasting and modeling, spread of risk, diversification Valuing losses to property, legal risk Use of contracts, variety of insurance products Evaluating the costs of a loss and who impacted PML and Retaining risk - client side & insurer side Partnership between parties in commerc