Risk Management MSc

This module is an introduction to research methods in risk management relating to literature review, asking research questions and objectives, research design, formulating research hypotheses, data collection, data analysis, presentation and discussion of findings.

1. Introduction Qualitative Analysis: This part of the module will be concerned with the collection and analysis of qualitative data
2. Introduction Quantitative Analysis: This part will be concerned with the collection and analysis of quantitative data

The module will include the following topics:

• Introduction to risk (the meaning and nature of risk)
• Risk and individuals (for example, risk perceptions, risk aversion)
• Risk and organisations (for example, risk appetite, risk and incentives, internal controls, organisational failure)
• Risk and markets (for example, market sources of risk, market pricing of risk)
• Risk modelling (qualitative and quantitative)

The module will provide critical foundations in societal aspects of risk. You will develop conceptual and practical understanding of risk problems in context, including the emergence and development of risk concepts, the character and diversity of risk governance and regulatory regimes, and varieties of public risk management and communication practices across different sectors and public and institutional settings.

You will gain knowledge of social science and public management theories, concepts, techniques, and different critical approaches to explaining and addressing societal risk issues. 

We hope that the module will enable you to make sense of some of the different perspectives that exist and understand their strengths and limitations when applied in the modern business environment. We will try to address various questions in this environment:

• Can all risks be identified?
• Can all risks be managed?
• Should all risks be managed?
• If not, how do we decide which should be ignored and which managed?
• How can risk, in particular financial risk, be measured?
• What techniques of risk management are available and what are their strengths and weaknesses?
• How can the risk management process be structured and planned?

The module covers:

• Introduction and historical overview
• Statistical underpinnings of quantitative risk management
• Measures of financial risk
• Risk measurement in practice: Parametric approaches, non-parametric approaches, Monte Carlo approaches, extreme value approaches
• Liquidity risk
• Backtesting
• Credit risk

This module introduces you to individual risk theory. Decision-making under certainty is covered and the standard theory of subjective expected utility is developed as a special case, along with problems of information asymmetry. Applications to gambling and insurance markets are reviewed. Empirical studies of these theories, based on laboratory or field data, are reviewed.

The module aims to allow you to synthesise, apply, and extend the knowledge you have gained in the taught component of the programme by engaging in primary data collection. Through investigating a current research topic and gathering original data, you will develop a deeper theoretical and practical understanding of contemporary issues in your area, while also enhancing your research, communication, and data analysis skills.

The Business Project requires students, working as groups, to undertake research in a topic which is relevant to business, management, marketing, finance, accounting, or information system. You must choose their research topic that is relevant to your named degree programme. The specific topic is subject to a formal approval process.

The module is intended for you to apply knowledge, concepts, skills, and techniques, acquired during the taught stage of your programme to real-world, business scenarios. You will be presented with real-word business problems for which you are required to review relevant literature, conduct research, analyse data, and formulate viable solutions.