Risk Management and Compliance

Catalog description

Risk management and compliance (RMC) is a process that organizations can use to limit excessive risk taking and unlawful corporate behavior. This class covers the losses resulting from ineffective risk management and compliance, such as business interruption, class action lawsuits, product recalls, reputational harm, and increased regulation. A variety of risk handling techniques are introduced, with an emphasis on how risk management can increase firm value. Using lectures and cases, the class examines how firms can implement risk management and compliance systems to better monitor and control corporate risk-taking behavior. Throughout the class, the legal, financial, and regulatory incentives to engage in corporate risk-taking are examined across a variety of corporate stakeholders, including managers, senior executives, corporate directors, customers, shareholders, institutional investors, and regulators.