| CODE | ISR5037 | ||||||||
| TITLE | Risk Management | ||||||||
| UM LEVEL | 05 - Postgraduate Modular Diploma or Degree Course | ||||||||
| MQF LEVEL | 7 | ||||||||
| ECTS CREDITS | 10 | ||||||||
| DEPARTMENT | Insurance and Risk Management | ||||||||
| DESCRIPTION | "Risk Management" is tailored to offer practical insights into risk management within the financial services sector, with a focus on the regulatory landscapes of Malta and the EU. This unit emphasizes hands-on approaches to developing and implementing risk management frameworks, strategies, and policies. Students will engage with real-world scenarios and case studies, exploring tools and techniques for risk assessment, mitigation, and monitoring. The unit also delves into understanding regulatory responsibilities and how to effectively integrate these practices within financial services entities to comply with both Maltese and EU regulations. The purpose of this study-unit is to enhance students' critical thinking and analytical skills within the field of risk management. The study-unit will consist of two core and interrelated elements. The first element will focus on the most important academic contributions within Risk Management. More specifically, students will be assigned various papers, Case Studies and book chapters to analyse and review, based on the agenda identified in their initial proposal. The aim is to ensure that students are fully up-to-date with the latest developments within the literature, and are thus able to properly outline their unique contribution to the field. The second element will consist of reflective analysis pertaining to their employment, including tasks, processes and projects. This will include an assignment and a class presentation where students derive key lessons learned, critically analyse any failings and propose a way forward, with links drawn to the academic literature as well as the student's own research. This study-unit is also based on practical learning material developed and updated together with the Federation of European Risk Managers (FERMA)’s and the Strategic Risk Leaders Association (SRLA) team of risk experts. It covers the main blocks of the Body of Knowledge, Case Studies and Practical Exposures which are the object of a Risk Management Professional. That is Risk Management Frameworks, Strategies, Objectives, Standards, responsibilities, Policies and tools. Study-unit Aims: - To equip students with practical skills in risk management aligned with Maltese and EU regulatory frameworks; - To demonstrate the application of risk management strategies and tools in real-world financial services scenarios; - To provide a practical understanding of key risk management frameworks and standards in Malta and the EU; - To explore the development and hands-on implementation of risk management strategies and policies; - To engage with practical tools and techniques for comprehensive risk management; - To understand and apply regulatory responsibilities in risk management within the financial services sector; - To examine case studies demonstrating the impact of risk management strategies in real-world scenarios; - To critically analyse, understand and interpret the latest academic literature in risk management published in top field journals and books; - To organise and present findings in a logically-consistent manner through a variety of written and oral media; - To utilise the tools learned as part of their future professional careers and in the pursuance of high-level academic research; - To set out the fundamental knowledge that applicants will require for a career in risk management; - To set risk management within the broader context of an organisation; - To determine the mechanisms and tools that are required for the treatment of risks and losses, with particular emphasis on control and reduction measures; - To communicate the nature, purpose and steps involved in risk control; - To define the process of risk identification, assessment and evaluation within an organisation; - To communicate and report the nature, purpose and steps involved in risk control; - To identify and communicate financing techniques; the principles underpinning insurance; and the primary benefits insurance contributes to society. Learning Outcomes: 1. Knowledge & Understanding By the end of the study-unit the student will be able to: - Learn from case studies to understand the practical challenges and successes of risk management strategies in the financial services industry; - Critically evaluate key academic developments within a chosen field of research, and identify the unique contributions; - Critically define and analyse their practical work-related experiences and tasks and linking these to theory, cases and academia; - Relate to the experiences and insights of other knowledgeable persons coming both from academia and the industry. 2. Skills By the end of the study-unit the student will be able to: - Utilize fundamental risk management frameworks and standards in practical scenarios within Malta and the EU; - Formulate and execute effective, practical risk management strategies that comply with regulatory standards; - Employ various tools and techniques for risk identification, assessment, and mitigation in real-world settings; - Identify and manage roles and responsibilities in risk management, ensuring compliance with Maltese and EU regulations; - Develop and oversee risk policies within financial services entities case studies, focusing on practical application; - Critically analyse, understand and interpret the latest academic literature in risk management published in top field journals and books; - Organise and present their findings in a logically-consistent manner through a variety of written and oral media; - Utilise the tools learned as part of their future professional careers and in the pursuance of high-level academic research. Pro-actively Identify, compile, analyse, evaluate and measure exposure to the following risks: • Probable • Accidental • Extraordinary business losses faced by individuals and organisations • Emerging (for example cyber, social media and climate change risk) • Reputation • Regulatory • Supply chain • Financial • Legal • Property • Personnel • Political • Environmental • Fraud. - Determine and suggest the range of risk control techniques, including prevention, protection and reduction techniques available; - Determine and develop loss prevention and protection strategies, as well as engage with business units. Main Text/s and any supplementary readings: Main Text - Shefrin, H. (2016) Behavioral Risk Management (Palgrave, U.S.). Supplementary Readings - Stulz, R. M. (1996). Rethinking risk management. Journal of applied corporate finance, 9(3), 8-25. - Froot, K. A., Scharfstein, D. S., & Stein, J. C. (1993). Risk management: Coordinating corporate investment and financing policies. the Journal of Finance, 48(5), 1629-1658. - Panjer, H. H., & Pedersen, H. W. (1997). Financial Economics: with applications to investments, insurance and pensions. - Rothschild, M., & Stiglitz, J. (1978). Equilibrium in competitive insurance markets: An essay on the economics of imperfect information. In Uncertainty in economics (pp. 257-280). - Svetlana, V. (2016). InsurTech: challeges and development perspectives. International Journal of Innovative Technologies in Economy, (3 (5)). - Yan, T. C., Schulte, P., & Chuen, D. L. K. (2017). InsurTech and FinTech: Banking and Insurance Enablement. In Handbook of Blockchain, Digital Finance, and Inclusion, Volume 1 (pp. 249-281). - Shleifer, A., & Vishny, R. W. (1997). A survey of corporate governance. The journal of finance, 52(2), 737-783. - Young, P., Grima, S. & Dalli Gonzi R. (2022) Public Sector Leadership in Assessing and Addressing Risk Vol: 4. Emerald ISBN9781801179479. - Arunkumar, Rekha and Kotreshwar, G., Risk Management in Commercial Banks (a Case Study of Public and Private Sector Banks). Indian Institute of Capital Markets 9th Capital Markets Conference Paper, Available at SSRN: https://ssrn.com/abstract=877812 or http://dx.doi.org/10.2139/ssrn.877812 - Jorion, Philippe, Risk Management Lessons from Long-Term Capital Management (June 1999). Available at SSRN: https://ssrn.com/abstract=169449 or http://dx.doi.org/10.2139/ssrn.169449 - Lo, Andrew W., Risk Management for Hedge Funds: Introduction and Overview (June 7, 2001). Available at SSRN: https://ssrn.com/abstract=283308 or http://dx.doi.org/10.2139/ssrn.283308 - Rosen, Robert Eli, Risk Management and Corporate Governance: The Case of Enron. Available at SSRN: https://ssrn.com/abstract=468168 - Meulbroek, Lisa K., Integrated Risk Management for the Firm: A Senior Manager's Guide (February 20, 2002). Available at SSRN: https://ssrn.com/abstract=301331 or http://dx.doi.org/10.2139/ssrn.301331 - Stulz, Rene M., Risk Management Failures: What are They and When do They Happen? (October 2008). Fisher College of Business Working Paper No. 2008-03-017, Charles A. Dice Center Working Paper No. 2008-18, Available at SSRN: https://ssrn.com/abstract=1278073 or http://dx.doi.org/10.2139/ssrn.1278073. |
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| ADDITIONAL NOTES | Pre-Requisite qualifications: Bachelor's Degree or as approved by the Board of Studies | ||||||||
| STUDY-UNIT TYPE | Lecture | ||||||||
| METHOD OF ASSESSMENT |
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| LECTURER/S | Manuele Marini Rafael Moreira Christian Bonnici West Simon Grima (Co-ord.) Christian Manicaro Tyrone Mizzi Jonathan Spiteri |
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The University makes every effort to ensure that the published Courses Plans, Programmes of Study and Study-Unit information are complete and up-to-date at the time of publication. The University reserves the right to make changes in case errors are detected after publication.
The availability of optional units may be subject to timetabling constraints. Units not attracting a sufficient number of registrations may be withdrawn without notice. It should be noted that all the information in the description above applies to study-units available during the academic year 2024/5. It may be subject to change in subsequent years. |
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