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Module Code - Title:


Year Last Offered:


Hours Per Week:













Grading Type:


Prerequisite Modules:

Rationale and Purpose of the Module:

To introduce the students to concepts and principles relating to the management of risk in both the public and private sector. The student will be expected to understand basic mathematical and financial models in dealing with risk theory as well as understanding the basics of the central theories on risk.


Concepts of risk, pure and speculative risk; actuarial mathematics and elementary risk theory; perceptions of risk; risk in the economic and legal environment; models of risk management; risk management as a decision making process, identification, analysis, evaluation, control, financing of risk; risk management in an organisation and in the public sector; formulation and implementation of risk management strategies; quality and risk management.

Learning Outcomes:

Cognitive (Knowledge, Understanding, Application, Analysis, Evaluation, Synthesis)

On Completion of this module students should be able to: Discuss the main theoretical positions on risk. Describe how risk is perceived and communicated. Show knowledge of risk measurement techniques. Apply probability theory and statistics in the context of insurance pricing. Examine the role insurance plays in the management of risk. Identify the relevance of utility theory for decision-making under conditions of uncertainty. Evaluate the role of risk management in the public sector.

Affective (Attitudes and Values)


Psychomotor (Physical Skills)


How the Module will be Taught and what will be the Learning Experiences of the Students:

The students will be taught in a series of lectures and tutorials. The module seeks to develop students who are knowledgeable about the fundamental theoretical and mathematical theory underlying risk management. The tutorial time will be used by students to discuss and debate academic work on risk as well as apply learning on probability theory and statistics. The focus on discussion sessions requires students to articulate their knowledge and collaborate with classmates on developing their mathematical skills.

Research Findings Incorporated in to the Syllabus (If Relevant):

Prime Texts:

Pickford (2001) Mastering Risk , Harlow: Prentice Hall
Mythen & Wales (2000) Risk Communication and Perception, A Critical Review , Manchester: Manchester Business School
Adam, Beck & van Loon (2000) The risk society and beyond: critical issues for social theory , London, Sage.
Dickson, G (1993) Risk Management , Chartered Insurance Institute, London.
Vaughan (1991) Fundamentals of risk and insurance , Wiley, New York
Bernstein, Peter (1998) Against the Gods , Wiley

Other Relevant Texts:

Fox, C., and Tversky, A (1995) Ambiguity Aversion and Comparative Ignorance , The Quarterly Journal of Economics
Dickson, G.C.A (1993) Corporate Risk Management , Witherbys, London
Power, M () The Risk Management of Everything: Rethinking the Politics of Uncertainty , UL Public Folders
MacGill, S. and Siu, Y., (2004) The Nature of Risk , Journal of Risk Research 7:3
Slovic, Paul (2003) Perceived Risk, Trust, and Democracy , Risk Analysis 13:6
Althaus, C.E., (2005) A Disciplinary Perspective on the Epistemological Status of Risk , Risk Analysis 25:3
Hossack, I.B., Pollard, J.H. and B. Zehnwirth (1990) Introductory Statistics with Applications in General Insurance , Cambridge University Press, Cambridge.
Ericson, R., and Doyle, A., (2004) Catastrophe Risk Insurance and Terrorism , Economy and Society

Programme(s) in which this Module is Offered:

BBBUSTUFA - Business Studies
BBBSJAUFA - Japanese
BAIIESUFA - International Insurance and European Studies
DPEQSCUFB - Equine Science
BSEQSCUFA - Equine Science

Semester - Year to be First Offered:


Module Leader: