This course can be seen as the third course offering and continuation of the introductory course, Risk Financing, of the three part series of risk management courses. It provides a broad understanding of the various risk financing techniques available for organizations to pay for losses. Although the text emphasizes the financing options for hazard risk it also discusses the other major categories of risk, such as operational, financial, strategic risks from which losses may arise. This course introduces the concept of paying for losses through various techniques or plans when the risk control efforts have either failed to prevent losses or a negative consequence of risk arises. Such techniques include insurance, alternative risk financing solutions, hedging and more. It is not a “business” finance course as most management students would think but rather a course that discusses how to effectively pay for losses, i.e. how the organization funds the payment of losses or negative consequences when they do occur. Funds to pay for or offset losses can arise from internal sources such as cash flow or assets or from external sources such as shareholders, banks or insurance companies or even a combination of any of the above.
This course is ten weeks in length covering eleven chapters, two assignments and three quizzes. This is an accelerated version of the course, which moves at a brisk pace, but if you put the time in, you will find that it can be quite a rewarding experience!
Weeks 3, 6, and 8 all have group discussions. Your 10% participation mark will be derived from these 3 discussions, so please actively participate.