RISK RETENTION, TRANSFER AND INSURANCE

SHE Level 3
SCQF Credit Points 20.00
ECTS Credit Points 10.00
Module Code M3N322843
Module Leader Muhammad Nawaz
School Glasgow School for Business and Society
Subject Risk
Trimester
  • A (September start)

Pre-Requisite Knowledge

Personal Investment, Society and Risk or equivalent

Summary of Content

This module examines risk and it's mitigation in business operations. Topics such as . the nature of risk, various forms of transfer and retention (insurance, self-insurance, contract terms, captive insurance, derivatives and securitization) are covered at length. PRME will be addressed by examining ethical aspects of insurance contracts, risk transfer mechanisms and other contemporary issues related to climate change and ethical products like "Takaful" in insurance. The curriculum is international in its very nature. Risk management is a global discipline, and the module reflects that by highlighting the universality of risk transfer, retention and insurance.

Syllabus

-360 1. Nature of Risk/Risk & Return 2. Risk Retention 3. Elements and principles of insurance 4. Forms and Types of Insurance 5. Law & regulation of insurance 6. Underwriting and pricing 7. Reinsurance 8. The claims process 9. Captive insurance 10. Transfer of risk by contract terms 11. Strategic management, marketing and distribution of insurance 12. International Insurance market, contemporary issues, ethical issues, climate change 13. Risk transfer by derivative contracts & securitization

Learning Outcomes

On successful completion of this module, the student should be able to: 1. Understand risk in business operations, and various ways of retaining, transferring and mitigating risk2. Demonstrate a clear understanding of established theories, principles and concepts of insurance3. Demonstrate a systematic and extensive knowledge of professional insurance practice, current issues and emerging issues in insurance.4. Apply knowledge and understanding of risk retention and transfer techniques like contract terms, derivative contracts and securitization processes.

Teaching / Learning Strategy

- Formative assessment and feedback - Keynote lectures and guest speakers - Tutorial and seminars to underpin lectures - VLE to enhance, supplement and innovate teaching and learning - Independent and directed learning to provide depth of understanding Formative assessment will form a key part of the student feedback strategy. - Keynote lectures will provide conceptual framework - Tutorials and seminars to provide support and understanding and to underpin lecture content - Virtual Learning Environment (VLE) to enable online access of lecture, provide discussion forums, and provide seminar and tutorial content to enhance the student learning experience - Independent and directed learning to provide depth to the subject area The following additional assessment and student feedback strategies will be adopted by this module: A: Facilitating the development of self-assessment Students will be provided with a template for the evaluation of their coursework, and asked both to identify the strengths and weaknesses of their own work in relation to the criteria prior to submission and to indicate the kind of feedback they would like when handing in work. B: Encouraging dialogue Time will be set aside in seminars to discuss feedback provided and strategies to improve performance next time. C: Clarifying good performance Students will be given clear guidance on requirements and given time to discuss and reflect upon those criteria in class. D: Providing opportunities to close the gap between current and desired performance Feedback will identify generic and individual action points, and students will also be encouraged to identify their own action points to improve performance in future. E: Delivering high quality information about your learning Feedback will be provided soon after submission and identify strengths, weaknesses and corrective advice. Time will also be set aside in seminars to provide feedback on formative assignments. F: Encouraging positive motivational beliefs and self-esteem All feedback will be constructive and clear. It will identify strengths in performance. G: Providing information to teachers that can be used to help shape the teaching Opportunities in class will be provided for students to identify 'challenging' issues in the course material, and they will be asked to indicate the kind of feedback they would like when handing in work

Indicative Reading

-567 Books and articles: Thoyt R (2010), Insurance Theory and Practice, Abingdon, Routledge Atkins D & Bates I (2008), Insurance, London, Global Professional Publishing Punter, Alan (2007) "Risk Financing and Risk Management", Institute of Financial Services, London. Banks, Erik (2004) "Alternative Risk Transfer", Wiley Finance, London Gordon, Alan (2005)"Risk Financing", Witherby, London Parkinson, J.R. (2002) "Captives and Captive Management for Practitioners and Owners" Key Haven Publications, London Taylor, Francesca (2006) "Mastering Derivatives Markets" 2nd Rev. Edition. Prentice Hall General information resources: Journal of Risk and Insurance The Global Risk Management Network - http://www.grmn.com/ Captive Insurance Website - www.captive.com The Geneva Papers LIFFE - www.liffe.com Securitization - www.securitization.net

Transferrable Skills

By the end of this module students will have gained competence in the following key areas: The students will develop skills of critical analysis, interpretation and personal transferable skills through group presentations in seminars.

Module Structure

Activity Total Hours
Assessment 15.00
Independent Learning Hours 141.00
Seminars (FT) 9.00
Tutorials 10.00
Lectures 25.00

Assessment Methods

Component Duration Weighting Threshold Description
Exam 01 2.00 60.00 35% Exam (Exams Office)
Exam (Dept) 01 1.50 40.00 35% Written Class Test