Program Overview

MGT581 Risk Management Practice

This subject examines the identification, measurement, and management of risk using multi-disciplinary techniques. The role of the decision maker and the role of decision making heuristics and bias are studied together with key qualitative and quantitative techniques used to model, measure and treat risk. The subsequent treatment of risk through risk retention, self insurance or the transfer and avoidance of risk is also examined. The subject allows students to identify these concepts from the perspective of a risk manager, e.g., establish risks in relation to individuals, property and legal liability. Whenever possible, study examples will be based on the real-world problems encountered in the work environment of students.

Subject Information

• Grading System: HD/FL
• Duration: One session
• School: School of Management and Marketing
• Enrolment Restrictions: Available only for Australian Graduate Management Consortium (AGMC) students.
• Subject Relationships:
  • MGT580: There is a significant overlap in content.
  • MGT589: There is a significant overlap in content.
• Incompatible Subjects:
  • MGT580
  • MGT589

Learning Outcomes

Upon successful completion of this subject, students should:

• be able to critically interpret the risk management concept and discriminate and appraise different definitions of risk and risk management;
• be able to assess and critically evaluate the role of the decision maker in risk and the influences of decision making heuristics, bias and risk preference in the risk management process;
• be able to interpret risk through modelling techniques;
• be able to determine the probability, frequency and consequences of a risk event occurring; and
• design and implement strategies to diminish risk through the potential to self insure, or to transfer risk using different product solutions.

Syllabus

This subject will cover the following topics:

• Definitions of risk
• The risk management process
• The role of the individual in the risk management process
• Risk measurement and modelling
• Qualitative techniques
• Quantitative techniques
• Personal risk management
• Trauma insurance, health, personal liability and investment risk
• Insurance and estate planning
• Business risk management
• Statement of Advice and planning using insurance