| CODE | INS3016 | ||||||||||||
| TITLE | Sociology of Risk | ||||||||||||
| UM LEVEL | 03 - Years 2, 3, 4 in Modular Undergraduate Course | ||||||||||||
| MQF LEVEL | 6 | ||||||||||||
| ECTS CREDITS | 4 | ||||||||||||
| DEPARTMENT | Insurance and Risk Management | ||||||||||||
| DESCRIPTION | This study-unit provides a comprehensive treatment of Behavioural risk management and studies the psychology of financial decision-making. Interest in behavioural risk has been growing specifically because investors rarely behave according to the assumptions made in traditional financial theory. Risk behaviour is a huge issue in finance and examples of this risk type can be found in the news on a near-daily basis. It starts from Mark Carney’s proposal to put a proportion of bankers' salaries at risk in case of misconduct, to the FX rigging scandal and payment protection insurance corruption revealed at Lloyds, focus on and interest in risk behaviour is growing exponentially. Investment professionals can no longer afford to ignore or fail to grasp the psychological motivations which can drive high-risk decision-making. People in the industry are realising that there is a benefit to understanding people, their emotions and their behaviour because it impacts every aspect of business. Study-unit Aims: - To provide a qualitative framework that digests the large number of plausible variables that can impact the value of risk within the Insurance sector and surrounding Finance areas; - To provide a strong basis of knowledge for understanding and studying the impact of sociological and psychological factors on the insurance products and industry. Learning Outcomes: 1. Knowledge & Understanding: By the end of the study-unit the student will be able to: - Determine what is risk; - Analyse Human Behaviour and how individuals react to risk and why?; - Determine how one understands risk and how this is translated into risk culture and into an organisation's culture; - Use this knowledge to the organisation's advantage by noting the early waring signs of any possible future impact. 2. Skills: By the end of the study-unit the student will be able to: - Develop and use the basic frameworks that have become indispensable for a proper understanding of the current requirements in Insurance and Risk Management; - Carry out effective framework approach to risk management; - Control emotions for the best effect; - Determine and act on signals regarding behavior, knowing when to change this approach. Main Text/s and any supplementary readings: - An Introduction to Behavioural Risk - By Cathy Hampson. http://riskbooks.com/book-behavioural-risk-a-competitive-advantage-for-investors-and-managers-790 - Essentials of Risk Management in Finance - Anthony Tarantino with Debroah Cernauskas. - Governance Risk Management and Compliance: It can't happen to us - avoiding corporate disaster while driving success - Richard M. Steinberg. |
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| STUDY-UNIT TYPE | Lecture and Tutorial | ||||||||||||
| METHOD OF ASSESSMENT |
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| LECTURER/S | Sharon Seychell |
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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 2023/4. It may be subject to change in subsequent years. |
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