Proseminar: Case Studies in Risk Management
Prof. Randy Dumm; Dennis Strümpel, Dr. Stefan Neuß
As the name implies, this course uses a case study approach to educate students about the risk management process and about the emerging and rapidly evolving concept of Enterprise Risk Management (ERM). Corporations today face a wider array of risks than ever before, and investors, regulators and other parties are demanding that management understand and manage these risks in the most effective and efficient manner possible. In this setting, an ERM approach to managing risk adds value by managing risk across the firm (or enterprise).
The course will focus on 1) the fundamentals of risk, risk management and ERM, 2) the variety of recently developed ERM tools available to management, and 3) the ERM implementation process, additional applications of ERM, and the future outlook for ERM. Cases studies will be used during the course to highlight risk identification and loss control within a particular firm and several cases that will be used to provide further insights into ERM applications and concepts.
During the course, the students will have the opportunity to complete a research project involving a corporation located in Munich. Examples of prior corporate participants include Munich Re, Swiss Re, Allianz, Munich Airport, BayernLB, EON, and HypoVereinsbank. For this project, each group will collect financial and organizational information on the company in preparation for an on-site interview with an executive from the firm (arranged by the Institute). Each group will present its findings during the last class session. These findings will include a discussion of the firm’s risk management and ERM practices, and the ERM/risk management related issues facing the firm.
Projects: As noted above, each student will participate in a group research project that investigates ERM/risk management practices.