Risk Management and Insurance

1.5 units

This course will provide an introduction to risk management and insurance. We will explore enterprise risk management broadly and learn what risk is and how it can be measured, managed, and/or mitigated. We will understand the different kinds of risk and the difference between insurance and hedging. Focusing especially on the issues of risk management from the perspectives of an insurance issuer and a corporate risk manager, we will study (i) the various insurance markets and the basics of how they operate and (ii) hedging commodity price risk, exchange rate risk, and interest rate risk using derivative contracts in financial markets. Students may not earn credit in both FIN 5550 and FIN 6550.