Textbook: Harrington & Niehaus, Risk Management and Insurance (2nd Ed.), McGraw Hill/Irwin publishers, New York, NY, 2004 (required)

• This course will examine the way in which business and society make an assessment of, control and transfer risk.
• It is designed for the student with no previous knowledge of risk management.

Reading and Homework Assignments

• Reading and homework assignments are shown below ("reading" and "slideshow").
• Reading assignments will be drawn from the textbook, and will be supplemented by articles and website readings from other publications (See "Ref" below).
• Homework will be assigned from time to time, and generally will be due the following class session.
• A final Research Paper is due on May 6 (see Guidelines for rules).

Evaluation & grading - see syllabus

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Date	Topic	Reading assignments, reference and learning materials
January 21	Syllabus, Calendar, Research Project Overview	Risk assessment - assignment: read "Emerging from Crisis" (Jan/Feb 09 RIMS magazine)
Risk Management Basics
Jan 26, 28, February 2	Risk and its Management & Objectives of Risk Management	Reading: Chapters 1 through 3, outlines Slideshow: chapter 1, chapter 2,chapter 3 Ref: History of Risk Management, the Risk Management Standard; quiz; sustainability (courtesy CPCU Society) and refs 1, 2; 3
Feb 4	Pooling Arrangements & Diversification of Risk	Reading: Chapter 4, outline Slideshow: chapter 4; PWC selected slides Ref: Insurance Digest, pp. 12-17, 18-20 (PwC); quiz
Feb 9	Insurer Ownership, Financial and Operational Structure	Reading: Chapter 5, outline Slideshow: chapter 5 Ref: Profit Decomposition, Profitability in the Non-Life Insurance Markets; An Analysis of P/C Insurer Profitability and its relationship to Rates; quiz
Feb 11	Insurance Regulation Insolvencies, Solvency Ratings, and Solvency Regulation	Reading: Chapter 6 & 7, outline 6, outline 7 Slideshow: chapters 6 and 7 Ref: A Brief History (III 2008); Back to the Business of Insurance; Insolvencies/Guaranty Funds; Operational risks; NCOIL Letter 4/2004; The Convergence of Insurance and Financial Markets (World Economic Forum 2008)
Feb 16	Insurance Pricing	Reading: Chapter 8, outline Slideshow: chapter 8 Ref: Managing Overconfidence; Battling Rising Prices; Reading: How to Help Stabilize Premiums; Premium Growth and Underwriting Result; P/C Premiums, Reserves & Surplus Growth
Feb 18	Risk Aversion and Risk Management by Individuals and Corporations	Reading: Chapter 9, outline Slideshow: chapter 9 Ref: Buy-Sell Arrangements; Managing the Risks of Outsourcing; Top 10 Business Risks ( E & Y 2009)
Feb 25	Homework I assigned: ID of Risks - see also: 2008 Allianz Status Report
March 2 - exam #1 - chapters 1 thru 10
Risk Management & Insurance Issues
March 9	Guest Speaker: Paul Pousson, ARM - UT Systems Risk Mgmt.	Hurricane Ike & the role of the risk manager
March 11	Guest Speakers: Jay Thompson and James Murphy	Texas Windstorm Association & Legislative Challenges - Catastrophe Risk Management
Business Risk Management - tort, fiduciary, contract liabilities, also employer/employee relationships
March 23	Insurability of Risk, Contractual Provisions, and Legal Doctrines	Reading: chapter 10, outline Slideshow: chapter 10 Ref: Contract Risk Allocation
March 25	Homework #1 Due & Guest Speaker: Ward Tisdale, AMD
March 30	Loss Control Project assigned; prep for class research project Top 10 Business Risks	Reading: Chapter 11, outline Slideshow: chapter 11 Ref: Loss Control Spending Survey; Best Practices in Loss Prevention
April 1	Legal Liability for Injuries	Reading: Chapter 12, outline Slideshow: chapter 12 Ref: Construction Accidents (Labor Law); Marsh: Green Market Update - 2009
April 6	PlaySkool case study Discussion Board resources due	See Blackboard "course documents", handouts
April 8	Management Liability, Workers' Compensation and Employee Injuries	Reading: Chapter 18, outline Slideshow: chapter 18 Ref: Frontline: Safety; personal protective equipment; III slideshow; Crossword, clues
April 13	Risk Management and Shareholder Wealth Outlines due	Reading: Chapter 20, outline Slideshow: chapter 20 Ref: KPMG Fraud Survey(2003) and Integrity Survey 2008/9; risk management continuum (and full article: world-class risk management); Governance, Risk and Compliance: ERM on Steroids (RIMS 2008)
April 15	Tax, Regulatory, and Accounting Factors Affecting Corporate Risk Management	Reading: Chapter 21, outline Slideshow: chapter 21 Ref: Enterprise Risk Management Topics (Casualty Actuarial Society), Reserving
April 20	Risk Retention/Reduction Decisions	Reading: Chapter 22, outline, and article "Financial Executives Say Risk Management Falls Short of Expectations" (cfo.com) Slideshow: chapter 22; CAS slideshow Ref: Managing Risk to Enhance Stakeholder Value
April 22	Commercial Insurance Contracts	Reading: Chapter 23, outline Slideshow: chapter 23 Ref: Risk Management Checklist; slideshow focusing on Work Comp, reserve deficiencies...cost of risk study
April 27 &  29	Catastrophe risk, IT/modeling; Hedging with Derivative Contracts	Reading: textbook pp. 286-294 (14.3-14.4 of chapter 14) Slideshow: reinsurance (Kline and Budd), Using Catastrophe Models for Pricing...; CAT bonds persevere in Tumultuous Market (Guy Carpenter 2 2009) Reading: Chapter 24, outline Slideshow: chapter 24; Securitization of Insurance Risk (AON); Catastrophes, Capital Markets, and Risk securitization (various sources);  ISO Hurricane Experience; The Importance of Calculating a Capital Charge for Insurable Risk (IRMI); Sidecars (Rough Notes)
May 4 - Exam #2 - chapters 10-12, portion of 14, 18, 20-24
May 6 - Research Papers Due (format and signatures required - see Guidelines)

Updated 4/28/2009