Risk and Risk Management

Catalog description

An analysis of the risks facing various organizations (business, families, and government) and a study of the techniques for managing these risks. This course considers both speculative risk (where gains or losses are possible and pure risk (where only losses may occur). Methods for assessing the financial impact of loss exposures are discussed and illustrated. Several frameworks for deciding the most efficient methods for dealing with loss exposures, including utility theory and mean-variance analysis, are considered. Systems for identifying potentially serious loss exposures using internal data will also be presented.