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MBA Programme
MANAGING RISKS
Instructor: Ayse nler
Office: CII 0.03
Ext: 4511
E-mail: ayse.onculer@insead.edu
Course Description
Managing risks has become a key challenge facing todays managers in business
settings. This course is designed to explore effective risk management tools for
different kinds of business risks. The course consists of three parts: In the first part,
we will talk about identifying and evaluating risks. Various techniques will be
discussed, including decision analysis, fault trees and simulation. In the second part of
the course, we will introduce some concepts in risk management, including risk
communication, negotiations, insurance and the role of financial markets for effective
risk management. The third part of the course will focus on different types of business
risks, namely financial risk, strategic risk, operational risk, management risk and
political risk. Several real-world examples, case studies and simulations will be used
throughout the course to illustrate different applications.
Course Requirements
The grades will be based on class participation, two individual case write-ups, a case
presentation and a final project. A breakdown of grading is given below:
Case Presentation (group)
Case Write-Up (individual)
Class Participation
Final Project (group)
20%
20%
20%
40%
Readings
There is one required textbook, which is assigned as a background reading:
N.N. Taleb, Fooled by Randomness (Texere, 2001)
We will not directly discuss the material in the book during our lectures. Rather, it is
assigned as a text that gives a good background for the material we will cover in class.
It is an easy reading and provides some interesting examples on the role of uncertainty
and risk in business settings.
The required readings for the course are provided in the coursepack.
SCHEDULE OF CLASSES
PART I: RISK ASSESSMENT
Session 1
Defining Risk
Read:
Session 2
Quantifying Risk
Read:
Session 3
Evaluating Risk I
Read:
Session 4
Evaluating Risk II
Read:
Case #1:
Mikes Self-Service
Session 5
Read:
Software:
Assignment:
Risk Communication
Read:
Case #2:
In the Valley of the Shadow: Responsible-Case and WorstCase Scenarios in the Kanawha Valley, Virginia
Presentation:
Session 7
Read:
Case #3:
Bentz-Smith Case
Session 8
Read:
Case #4:
Hand-in:
Operational Risk
Read:
Case #5:
Session 10
Financial Risk
Read:
Case #6:
Session 11
Management Risk
Session 12
Strategic Risk
Read:
Case #7:
Session 13
Read:
Case #8:
Session 14
Political Risk
Read:
In-Class Exercise:
Delphi Method
Case#9:
Session 15&16
Read: