Problem & Task
Due to the increasing complexity and dynamic of the environment which result from networked markets, the risk situation of companies is tightening: bigger opportunities are facing higher risk. Many companies are not prepared methodically and organizationally in an appropriate way and therefore react too late on the occurrence of risks. The main task of risk management is to discover the relevant risks, to communicate them reasonably and to avoid erroneous trends. The establishment of a risk culture may support this process.
Objectives
A well-grounded knowledge about the most important types of risk as well as about the risk management process (risk identification, risk evaluation, risk controlling) is essential for managers. To identify certain areas of risk, to cope with them systematically, to evaluate them and to convey the necessary procedures are crucial skills. Furthermore, it is important to evaluate the potential of stochastic methods in the area of quantitative risk management adequately and to evaluate the implementation of relevant techniques within the framework of the risk management process in a professional way. Specific risk management information systems are offering meaningful aid to achieve these goals. |
Approach
The module will discuss both the fundamentals of good corporate governance as well as the basic guidelines for a comprehensible risk management. Based on an overview over the regulatory framework requirements the difference between the legally demanded and the economically necessary risk management will be exposed. Within the scope of risk evaluation and risk aggregation, the necessary quantitative basics of risk management will be taught and practiced. Within a large case study, the methods will be transposed and implemented within the sense of a solution to improve the risk management organization of companies.
Module supervision
Professor Dr. Hansrudi Lenz |
