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Property - Liability Risk Management & Planning
Spring 2009 |
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RM 377
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| Professor: Patricia M. Arnold, CPCU, ALCM |
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| Office: GSB 5.126A |
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| Phone: 475-6728 |
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| Office Hours: 2 - 4 PM Friday or by appt. |
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| Class location/time: UTC
1.146/3:30 - 5 PM M, W |
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Syllabus - Spring 2009 |
TEXT
1. Risk Management and Insurance
by Scott Harrington and Greg Niehaus, Irwin McGraw Hill Publ. (required)
2. Class handouts and assigned reading
COURSE OBJECTIVES
The ability
to transfer risk through the insurance mechanism is one of the primary reasons
allowing for the growth of the capitalistic market system of enterprise.
Without this ability, banks would not loan corporations (or individuals) money
and firms would run the risk of insolvency due to random accidents, fires,
lawsuits, and other vagaries beyond their control.
One need only
look to the economic repercussions of the 9/11/2001 tragedy and the recent
tanking of the "markets" - the 2007/2008 financial lending/liquidity crisis
- to see the impact
of loss of insurance products and services on developing
industries, the effects of medical malpractice lawsuits on the cost and availability
of health care, the impact of liability lawsuits on the availability of
products as well as decisions such as viability of sourcing outside the USA
of products to be consumed in our markets, regulated by our state and/or
federal authorities, and caught in varying legal and political cultures and
environments.
Everything has
risk and potential rewards - these risks can and must be intellectually and
in the context of human-behavior, controlled and balanced...be they
financial, operational, societal, economic, enterprise-wide risk. The management
of risks using risk appetite / cost of risk balancing techniques, as well as the
traditional insurance vehicle, is crucial to long-term success. Examples include emphasis on
enterprise security, loss control/prevention and safety, and sophisticated
measures such as securitization.
This course
will examine methods by which firms and individuals can control and handle
risks which are not associated with mortality and morbidity (these
latter risks being covered in depth in another course, RM 369K
offered each Fall semester).
Among the risks
considered in this class will be catastrophe risk financing, good faith & legal liability, workers'
compensation and employment risk management, corporate governance, emergency
planning and risk financing, contracts & indemnification, and environmental
impairment liability.
The course also
addresses a number of other important public policy issues, such as regulation,
sustainability, global challenges & competition, and the concept of a
fair and justified price for consumers (a topic of substantial interest
to the Texas legislature, associated with the affordability and availability
of homeowners insurance policies, underserved markets, and the cost of including
mold liability claims in the policy coverage).
The course is designed to be accessible to students with no previous course work
in RM.
In addition to the class readings, guest speakers
will bring a “real world” perspective to the class. A research project
will be completed by each student.
EVALUATION
Your final grade will be determined as follows:
COMPONENT _________
PERCENT
Quizzes and class participation
25 %
incl. attendance and extra credit
Two Examinations worth 25% each
50 %
Research
Paper 25 %
The research paper is tentatively scheduled to be due the week
of _________.
There will be no final exam.
Actual letter grades for the course will be determined on the basis of
You may reach me at my e-mail address pat.arnold@mccombs.utexas.edu
if you have any questions.
Use
of Blackboard in Classes
This course uses
Blackboard, a Web-based course management system in which a password-protected
site is created for each course. (Student enrollments in each course are
updated each evening.)
Blackboard can be used to distribute
course materials, to communicate and collaborate online, to post grades,
to submit assignments, and to take online quizzes and surveys.
You will be responsible for checking
the Blackboard course site regularly for class work and announcements.
As with all computer systems, there are occasional scheduled downtimes
as well as unanticipated disruptions. Notification of these disruptions
will be posted on the Blackboard login page. Scheduled downtimes are not
an excuse for late work. However, if there is an unscheduled downtime
for a significant period of time, I will make an adjustment if it occurs
close to the due date.
Blackboard is available at http://courses.utexas.edu.
Support is provided by the ITS Help Desk at 475-9400 Monday through Friday
8 am to 6 pm, so plan accordingly.
The
University of Texas at Austin provides, upon request, appropriate academic
accommodations for qualified students with disabilities. For more information,
contact the Office of the Dean of Students at 471-6259 (471-4641 TTY)
If the University
policies permit, a student may withdraw or drop this class with approval by
the withdraw/drop deadlines set by the University. After the deadline, students
who withdraw/drop the course receive a grade based on what they have earned
in the course at that point in time.
Scholastic Dishonesty Policy:
The
University defines academic dishonesty as cheating, plagiarism, unauthorized
collaboration, falsifying academic records, and any act designed to avoid
participating honestly in the learning process. Scholastic dishonesty also
includes, but is not limited to, providing false or misleading information
to receive a postponement or an extension on an exam or other assignment,
and submission of essentially the same written assignment for two different
courses without permission of faculty members. The McCombs School of Business
has no tolerance for acts of academic dishonesty. The responsibilities of
both students and faculty with regard to scholastic dishonesty are described
in detail in the Policy Statement on Scholastic Dishonesty for the McCombs
School of Business. By teaching this course, I have agreed to observe all
of the faculty responsibilities described in that document. By enrolling in
this course, you have agreed to observe all of the student responsibilities
described in that document. If the application of that Policy Statement to
this class and its assignments is unclear, it is your responsibility to ask
me for clarification.
Policy
on Scholastic Dishonesty: Students who violate University rules on scholastic
dishonesty are subject to disciplinary penalties, including the possibility
of failure in the course and/or dismissal from the University. Since dishonesty
harms the individual, all students, and the integrity of the University,
policies on scholastic dishonesty will be strictly enforced.
Students should
refer to the Student Judicial Services (http://www.utexas.edu/depts/dos/)
or the General Information Catalog to access the official University policies
and procedures on scholastic dishonesty as well as further elaboration
on what constitutes scholastic dishonesty.
Religious
Holidays
Religious holy
days sometimes conflict with class and examination schedules. If you miss
an examination, work assignment, or other project due to the observance
of a religious holy day you will be given an opportunity to complete the
work missed within a reasonable time after the absence. It is the policy
of The University of Texas at Austin that you must notify each of your
instructors at least fourteen days prior to the classes scheduled on dates
you will be absent to observe a religious holy day.
Updated
11/22/2008