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The Need for RMIDecision MakingPooling and InsuranceIntegrationInterdisciplinary ProgramsCourse ContentFundamentals CourseAdvanced Course WorkAuthors
 
 

The key considerations in the development of academically viable and industry supported, collegiate rick management and insurance program:

1.      Risk management and insurance represents a key aspect of business education.  While other business disciplines generally approach risk from the limited perspective of their disciplines, risk management and insurance views risk systematically across the entire organization.

2.      Risk management and insurance provides a disciplined decision-making process to reduce the adverse consequences of risk on a cost effective basis.  By mastering this methodology, business students develop skills that can be applied to solve a variety of organizational risk problems.

3.      The approach to pooling risk in risk management and insurance is unique.  In contrast to finance, risk management and insurance focuses on “idiosyncratic” or non-systematic risks that are generally not hedgeable in financial markets. In addition, risk management and insurance deals with risks that can be actively managed through activities designed to alter the underlying probability distributions.

4.      The cornerstone of a risk management and insurance education at both the graduate and the undergraduate level is a challenging fundamentals course.  The fundamentals course should provide students with a conceptual framework for making risk management decisions to increase business value and a broad knowledge of risk management and insurance, including important public policy issues.

5.      Advanced course work should be designed to provide valuable electives to general business students and a rigorous academic foundation for students who wish to specialize in risk management and insurance or actuarial science.

6.      While a basic understanding of risk management and insurance is fundamental to business literacy, it also complements studies in other business disciplines. In addition, the pervasiveness of risk in society creates exciting opportunities for interdisciplinary programs with academic disciplines in other colleges of the university.

7.      Both the University and business community stand to realize significant benefits from a strengthened risk management and insurance program.  The risk management and insurance industry should benefit from an enhanced selection of business school graduates with significant background in both traditional business disciplines and specific insurance related skills.  The University should benefit from a greater demand for its students, expanded demand for executive education, funding of faculty research, and consulting arrangements.  Internship, mentorship, and scholarship programs will also likely increase.