Managing Risk, Return, and Reserves

Permission of the instructor for students lacking the requisite. This course is designed to give undergraduate and graduate students exposure to the challenges of managing the financial risk of uncertainty in the value of liabilities and assets within an insurance/reinsurance/risk management context. Students will learn to use actuarial and financial market data to make risk-based decisions related to setting insurance premiums and allocating assets based on estimates of future liabilities (e.g., claims, market losses). The course will introduce students to the properties of different asset classes and hedging tools and demonstrate different methods to assemble portfolios that balance profitability with the risk of insolvency.