INTERNATIONAL MANAGEMENT OF RISK

SHE Level 4
SCQF Credit Points 20.00
ECTS Credit Points 10.00
Module Code MHN311758
Module Leader Madhusudan Acharyya
School Glasgow School for Business and Society
Subject Risk
Trimester
  • B (January start)

Pre-Requisite Knowledge

A pass in all CBS core modules at level 3 or equivalent. The students are also expected to possess a general knowledge and interest in international business risk issues, which may have been acquired by reading current financial press, or demonstrated by following a course of study in a related discipline.

Summary of Content

This module will help students develop an understanding of various ways in which multinational companies are affected by risks in global operations, and how they may deal with such risks. The types of risks covered in the module will fall under the headings of political, legal, economic, financial, environmental and cultural. For instance, the module will explore multinational business risks, foreign exchange risks, the measurement of foreign exchange exposure, political risk and the impact of the environment on the financial situation of the company. Country studies in the moduel aim to develop the students' understanding of the difficulties and opportunities inherent in international business operations.

Syllabus

Factors which influence international management of risk Multinational Business Risk Management - Overview Political Risks, Measurement and Management Foreign Exchange Risks, Evaluation, Types and Management Global Insurance Programmes Social, ethical and environmental risks facing MNCs. Case Studies

Learning Outcomes

Students successfully completing this module will be able to:-- Discuss why risk and risk management may differ between countries- Critically analyse the various risks faced by companies with international operations and evaluate a range of control measures - Display a systematic understanding of the historic background of current exchange rate regimes. Discuss the management, determination, measuring and forecasting of exchange rates for a global corporation - Examine and be able to explain the role of the insurer and broker in constructing global insurance programmes and the difficulties inherent in such programmes- Critically evaluate the impact of political risk for a MNC, and be able to discuss the amangement of such risk- Discuss the issues surrounding social, ethical and environmental risks facing MNCs.- Analyse a number of risk issues raised by a range of case studies- Through "Country Studies", be able to assess the impact of society, economy and politics on the business activities of MNCs.

Teaching / Learning Strategy

A combination of lectures, seminars, guest speakers and directed learning.

Indicative Reading

"Multinational Business Finance" - (8th Ed. - Eiteman, Stonehill, Moffett) (or latest) "International Business: Competing in the Global Marketplace" - Hill, C (2003) McGraw Hill. "Risk Financing" - Alan Gordon (Witherby) (1992) "Corporate Finance and Investment" - Pike and Neale (3rd ed. or latest)

Transferrable Skills

N/A

Module Structure

Activity Total Hours
Lectures (FT) 24.00
Seminars (FT) 12.00
Private Study 90.00
Directed Learning 36.00
Assessment (FT) 18.00

Assessment Methods

Component Duration Weighting Threshold Description
Coursework 0.00 30.00 35% Written assignment 3000 words
Exam (Exams Office) 3.00 70.00 35% Unseen exam