| CODE | INS3030 | ||||||||
| TITLE | Enterprise Risk Management | ||||||||
| UM LEVEL | 03 - Years 2, 3, 4 in Modular Undergraduate Course | ||||||||
| MQF LEVEL | 6 | ||||||||
| ECTS CREDITS | 4 | ||||||||
| DEPARTMENT | Insurance and Risk Management | ||||||||
| DESCRIPTION | Enterprise Risk Management (ERM) is a crucial element of contemporary business strategy, involving the recognition, evaluation, and reduction of risks that may affect an organization's goals. This study course offers a thorough examination of ERM, providing insights into its principles, methodology, and practical applications across many organizational contexts. The study-unit commences with creating a fundamental comprehension of risk management principles, encompassing the differentiation between conventional risk management methodologies and the integrated framework of Enterprise Risk Management (ERM). Participants explore the importance of risk culture, governance frameworks, and stakeholder engagement in promoting effective risk management strategies. The study-unit comprises essential elements such as: - Risk Identification and Assessment: Participants get knowledge on methods for recognizing and appraising risks across many aspects, such as strategic, financial, operational, and compliance-related concerns. Thorough risk assessment plays a crucial role in reducing potential dangers and taking advantage of opportunities, as demonstrated by case studies and real-world examples; - Risk Mitigation ways: This study unit examines many ways for reducing and managing risks, including risk avoidance, risk reduction, risk transfer, and risk acceptance. Participants analyze the function of insurance, derivatives, and other financial instruments in handling risk exposure, as well as the execution of internal controls and contingency plans; - Integration with Business Strategy: Enterprise Risk Management (ERM) is positioned as a crucial element of strategic decision-making, ensuring that risk management practices are in line with business objectives and values. Participants examine frameworks for incorporating risk factors into corporate planning, investment decisions, and performance evaluation processes; - In a constantly changing business environment, businesses need to anticipate and adjust to rising risks and uncertainties. The study unit focuses on current concerns such as cyber threats, geopolitical instability, and climate change. It aims to provide participants with techniques to effectively manage risks and create resilience. Effective Enterprise Risk Management (ERM) necessitates continuous monitoring and adjustment to ensure responsiveness to changing risk environments. Participants acquire techniques for monitoring risk indicators, evaluating the efficiency of controls, and establishing feedback mechanisms to improve risk management procedures progressively. Study-unit Aims: - To provide a comprehensive overview of Enterprise Risk Management, covering its fundamental principles, components, integration with organizational strategy, implementation challenges, emerging trends, and assessment methods. It also emphasizes the importance of practical application through case studies, group projects, and presentations; - Enterprise Risk Management (ERM) is a crucial aspect of organizational management that aims to identify, assess, prioritize, and mitigate risks that could potentially hinder the achievement of an organization's objectives. Learning Outcomes: Knowledge and Understanding By the end of the study unit the student will be able to: 鈥� Define Enterprise Risk Management (ERM) and explain its importance in organizational decision-making; 鈥� Identify key components and principles of ERM; 鈥� Describe the evolution of ERM and its significance in modern business environments; 鈥� Demonstrate the ability to identify and classify different types of risks facing organizations; 鈥� Apply various techniques for risk assessment, including qualitative and quantitative methods; 鈥� Evaluate risk exposure and prioritize risks based on their potential impact and likelihood; 鈥� Analyse different risk response strategies (e.g., avoid, reduce, share, accept) and their applicability in various scenarios; 鈥� Develop control activities and countermeasures to mitigate identified risks; 鈥� Implement risk monitoring and review processes to track the effectiveness of risk management strategies; 鈥� Explain how ERM aligns with and supports organizational objectives and strategies; 鈥� Discuss the role of leadership and organizational culture in promoting effective risk management practices; 鈥� Design an ERM governance structure that facilitates strategic risk management across the organization; 鈥� Identify common challenges associated with implementing ERM within organizations; 鈥� Propose strategies to overcome resistance to change and foster a risk-aware culture; 鈥� Apply best practices in ERM implementation based on real-world case studies and examples. Skills By the end of the study-unit the student will be able to: 鈥� Critically evaluate risk scenarios and recommend appropriate risk management strategies; 鈥� Apply theoretical knowledge of ERM concepts to solve practical, real-world risk management challenges; 鈥� Synthesize information from various sources to make informed decisions regarding risk prioritization and mitigation; 鈥� Recognize ethical considerations inherent in the practice of ERM; 鈥� Demonstrate professionalism and integrity in managing sensitive risk information; 鈥� Uphold ethical standards and legal requirements related to risk management practices; 鈥� Work effectively in multidisciplinary teams to address complex risk management challenges; 鈥� Communicate and collaborate with peers to develop comprehensive risk management strategies; 鈥� Respect diverse perspectives and leverage collective expertise to achieve common goals. Reading List: Recommended Text: - COSO Enterprise Risk Management: Understanding the New Integrated ERM Framework (Hardcover) by Robert Moeller (Author) Publisher WILEY FINANCE. Supplementary Text: - Risk Management code 655 鈥� Chartered Insurance Institute. - Risk Regulation and Capital Adequacy code 510 鈥� Chartered Insurance Institute. - Corporate Risk Management Professor GCA Dickson 鈥� Witherby. - Corporate Governance 鈥� Robert Monks and Nell Minow 鈥� Blackwell publishing. - Simple Tools and Techniques for Enterprise Risk Management by Robert J. Chapman (Author) Publisher WILEY FINANCE. - Enterprise Risk Management: From Incentives to Controls by James Lam (Author) Publisher WILEY FINANCE. - Manager's Guide to Compliance: Sarbanes-Oxley, COSO, ERM, COBIT, IFRS, BASEL II, OMB's A-123, ASX 10, OECD Principles, Turnbull Guidance, Best Practices, and Case Studies by Anthony Tarantino Publisher WILEY FINANCE. - The complete Guide to Business Risk Management 鈥� Kit Sadgrove 鈥� Gower Publishing. |
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| STUDY-UNIT TYPE | Lecture and Tutorial | ||||||||
| METHOD OF ASSESSMENT |
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| LECTURER/S | John Mifsud (Co-ord.) |
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The University makes every effort to ensure that the published Courses Plans, Programmes of Study and Study-Unit information are complete and up-to-date at the time of publication. The University reserves the right to make changes in case errors are detected after publication.
The availability of optional units may be subject to timetabling constraints. Units not attracting a sufficient number of registrations may be withdrawn without notice. It should be noted that all the information in the description above applies to study-units available during the academic year 2025/6. It may be subject to change in subsequent years. |
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