Study-Unit Description

Study-Unit Description


CODE INS1000

 
TITLE Introduction to Insurance and Risk Management

 
LEVEL 01 - Year 1 in Modular Undergraduate Course

 
ECTS CREDITS 4

 
DEPARTMENT Insurance

 
DESCRIPTION Risk is part of all our lives. As a society, one needs to take risks to grow and develop. From energy to infrastructure, supply chains to airport security, hospitals to housing, effectively managed risks help societies achieve. In this fast paced world, risks need to be managed to evolve quickly and minimise threats and maximise potential.

Because risk is inherent in everything we do, the type of roles undertaken by risk professionals are incredibly diverse. They include roles in insurance, business continuity, health and safety, corporate governance, engineering, planning and financial services.

This introductory study-unit in Insurance and Risk management (IRM) presents the students with key tools and knowledge to help in the understanding, analyses and address of risks, to make sure organisations achieve their objectives with little uncertainty. Students will learn about the various forms of risk that risk professionals protect themselves and their customers against, and the fundamental tools that they use to do so.

The unit will introduce the various terms used such as Risk Appetite, Risk tolerance, the various forms of Risk Transfer – Insurance and Reinsurance (that offer protection against risk), Risk Transfer, Risk Mitigation and Risk Acceptance.

The study will also introduce the process that insurers follow when deciding whether or not to insure a new customer and the fundamentals of enterprise risk management in a fast-paced, interactive environment. The unit will bring material to life by using the theory and practice of risk management in-line with the various frameworks, case studies and current affairs.

Study-unit Aims:

- To cover insurance and risk management practices and principles;
- To help students understand the terminology used in these areas and the understanding of definitions;
- To cover the understanding of the nature of the business of insurance and risk management, delve in the underlying principles and outlines the practice in the real world. It will tackle areas such as:
    - IRM principles, terminology and definitions;
    - The market and market players;
    - Regulation affecting IRM;
    - IRM practices and processes.

Learning Outcomes:

1. Knowledge & Understanding
By the end of the study-unit the student will be able to:

- determine when Risk is a Risk and define Risk;
- identify Risk Appetite and Tolerance and deal with residuals of risks;
- determine the tools needed for measuring Risk and the way Risk Management should be carried out in the various areas of business units.

2. Skills
By the end of the study-unit the student will be able to:

- define risk from a wide variety of perspectives;
- list the various processes that risk professionals engage in to identify and mitigate risk;
- describe the process that insurers go through when insuring an exposure;
- describe the basic requirements and characteristics of insurance contracts;
- list and describe the range of risks that global corporations face;
- state and define the most common sources of liability in society;
- define the risks that all individuals face throughout the life cycle;
- discuss the various ways in which life cycle risks can be mitigated;
- read and interpret different insurance policies and risk management practices;
- explain the various tools, methods and work practices in the area of risk and insurance.

Main Text/s and any supplementary readings:

Main Text:

- Essentials of Risk Management in Finance - Anthony Tarantino with Deborah Cernauskas Wiley

Recommended Text:

- CII – IF1 Insurance, the Market, Legal and Regulatory Background
- Success in Insurance – S.P. Diacon & R.L. Corter
- Elements of Insurance – D.S. Harsell
- Principles and Practice of Insurance – Mark S. Dacay
- Introduction to Insurance – Michael G. Collins
- Introduction to Insurance – G.C.A. Dickson & J.T. Steal
- Fundamentals of Risk Management: Understanding, Evaluating and Implementing Effective Risk Management [Paperback] Paul Hopkin

 
STUDY-UNIT TYPE Lecture

 
METHOD OF ASSESSMENT
Assessment Component/s Assessment Due Resit Availability Weighting
Assignment SEM2 Yes 50%
Examination (1 Hour) SEM2 Yes 50%

 
LECTURER/S Andre Farrugia (Co-ord.)
Antonio Gannino
Simon Grima
Jonathan Spiteri
Mark Lawrence Mario Zammit

 
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 2020/1. It may be subject to change in subsequent years.

https://www.um.edu.mt/course/studyunit