FINANCIAL AND ENTERPRISE RISK MANAGEMENT
Syllabus
EN
IT
Learning Objectives
LEARNING OUTCOMES: Organizations today operate in an increasingly complex and challenging environment. Recent financial crises and the pandemic have highlighted the severe consequences of neglecting or ineffectively managing business risks. The course aims to provide students with theoretical, methodological, and applied knowledge for the identification, assessment, management, and monitoring of major financial and business risks, adopting an Enterprise Risk Management (ERM) perspective. Particular attention is devoted to the integration of risk into managerial decision-making and to the main tools and frameworks used in business practice. The course addresses both financial and non-financial risks, including cyber risk, geopolitical risk, and energy & commodity risk, as well as tools for risk measurement, monitoring, and communication.Through real-world business cases, data and corporate documents, professional databases, and e-tivities, students will be required to apply and critically evaluate risk management methodologies and tools. The course also adopts an interdisciplinary perspective, considering the contribution of behavioural sciences and neuroscience to understanding risk perception and decision-making under risk.
KNOWLEDGE AND UNDERSTANDING: Students will acquire in-depth knowledge of the main categories of financial and business risk, the principles of Enterprise Risk Management, the main reference frameworks, and the methodologies used to identify, measure, monitor, and communicate risks. They will also be able to understand the interdependencies among different categories of risk and their impact on business decisions.
APPLYING KNOWLEDGE AND UNDERSTANDING: Students will be able to apply risk management methodologies and tools to complex business problems, using qualitative and quantitative information derived from real-world cases, financial statements, corporate disclosures, and professional databases. They will be able to identify and classify risks, select appropriate indicators and measurement methodologies, interpret the results of their analyses, and formulate well-supported proposals for risk management and mitigation.
MAKING JUDGEMENTS: Students will develop the ability to critically evaluate risk management frameworks, methodologies, and systems by comparing alternative approaches and identifying their strengths, limitations, and conditions of applicability. Through the analysis of real-world business cases, students will also be required to make independent judgements regarding firms’ risk profiles and the adequacy of their risk management strategies.
COMMUNICATION SKILLS: Students will be able to use risk management terminology appropriately and communicate the results of their analyses in a clear, concise, and well-reasoned manner, adapting their communication to both specialist and non-specialist audiences.
LEARNING SKILLS: Students will develop the ability to independently update and expand their knowledge of risk management through the critical use of scientific literature, corporate reporting, professional databases, artificial intelligence and programming tools, as well as documents produced by professional associations and national and international institutions.
KNOWLEDGE AND UNDERSTANDING: Students will acquire in-depth knowledge of the main categories of financial and business risk, the principles of Enterprise Risk Management, the main reference frameworks, and the methodologies used to identify, measure, monitor, and communicate risks. They will also be able to understand the interdependencies among different categories of risk and their impact on business decisions.
APPLYING KNOWLEDGE AND UNDERSTANDING: Students will be able to apply risk management methodologies and tools to complex business problems, using qualitative and quantitative information derived from real-world cases, financial statements, corporate disclosures, and professional databases. They will be able to identify and classify risks, select appropriate indicators and measurement methodologies, interpret the results of their analyses, and formulate well-supported proposals for risk management and mitigation.
MAKING JUDGEMENTS: Students will develop the ability to critically evaluate risk management frameworks, methodologies, and systems by comparing alternative approaches and identifying their strengths, limitations, and conditions of applicability. Through the analysis of real-world business cases, students will also be required to make independent judgements regarding firms’ risk profiles and the adequacy of their risk management strategies.
COMMUNICATION SKILLS: Students will be able to use risk management terminology appropriately and communicate the results of their analyses in a clear, concise, and well-reasoned manner, adapting their communication to both specialist and non-specialist audiences.
LEARNING SKILLS: Students will develop the ability to independently update and expand their knowledge of risk management through the critical use of scientific literature, corporate reporting, professional databases, artificial intelligence and programming tools, as well as documents produced by professional associations and national and international institutions.
Prerequisites
Basic knowledge of business administration, corporate finance, and statistics.
Program
Part 1 – Risk Management and Enterprise Risk Management (approximately 13 hours)
1. Definition, identification, and classification of business risks
2. Risk perception and decision-making under risk: insights from psychology and neuroscience
3. Enterprise Risk Management (ERM): frameworks, risk governance, and risk culture
4. Risk disclosure, risk communication, and risk monitoring
Part 2 – Risk Measurement and Management (approximately 23 hours)
5. Quantitative risk measurement: Value at Risk, sensitivity analysis, scenario analysis, and Monte Carlo simulation
6. Financial risk management: derivatives and hedging strategies
7. Key Risk Indicators (KRIs): development, selection, and use
8. Cyber risk: identification, assessment, and management
9. Energy & commodity risk: exposure, measurement, and management
Teaching StructureThe course comprises a total of 36 hours, divided into 12 hours of Synchronous E-learning (DES), 12 hours of Asynchronous E-learning (DEA), and 12 hours of Interactive Teaching (DI). The three teaching modes are integrated across both parts of the course: theoretical and methodological content is delivered through DES and DEA, while DI activities allow students to apply and further develop their knowledge through e-tivities, assignments, and the analysis of real-world business cases.
1. Definition, identification, and classification of business risks
2. Risk perception and decision-making under risk: insights from psychology and neuroscience
3. Enterprise Risk Management (ERM): frameworks, risk governance, and risk culture
4. Risk disclosure, risk communication, and risk monitoring
Part 2 – Risk Measurement and Management (approximately 23 hours)
5. Quantitative risk measurement: Value at Risk, sensitivity analysis, scenario analysis, and Monte Carlo simulation
6. Financial risk management: derivatives and hedging strategies
7. Key Risk Indicators (KRIs): development, selection, and use
8. Cyber risk: identification, assessment, and management
9. Energy & commodity risk: exposure, measurement, and management
Teaching StructureThe course comprises a total of 36 hours, divided into 12 hours of Synchronous E-learning (DES), 12 hours of Asynchronous E-learning (DEA), and 12 hours of Interactive Teaching (DI). The three teaching modes are integrated across both parts of the course: theoretical and methodological content is delivered through DES and DEA, while DI activities allow students to apply and further develop their knowledge through e-tivities, assignments, and the analysis of real-world business cases.
Books
Suggested:
James Lam, “Enterprise Risk Management: From Incentives to Controls”. Wiley, Second edition, 2014
John Fraser, Rob Quail, Betty Simkins, "Enterprise Risk Managament", Wiley, Second edition, 2021
Essentials of Financial Risk Management 1st Edition
James Lam, “Enterprise Risk Management: From Incentives to Controls”. Wiley, Second edition, 2014
John Fraser, Rob Quail, Betty Simkins, "Enterprise Risk Managament", Wiley, Second edition, 2021
Essentials of Financial Risk Management 1st Edition
Teaching methods
The course will be delivered in a blended format, supported by an online learning platform. The teaching approach integrates Delivery Teaching, Interactive Learning, and self-directed learning activities. Delivery Teaching (DES and DEA) includes synchronous face-to-face and online lectures, guest speakers from industry, video lectures, assignment debriefing sessions, podcasts, and other multimedia learning materials. Interactive Learning (DI) is based on discussion forums, e-tivities, individual and group assignments, case studies, practical exercises, and self-assessment activities designed to promote active student engagement. Self-directed learning is supported by structured teaching materials and is aimed at facilitating individual study and exam preparation.Approximately 12 hours will be devoted to synchronous teaching, 12 hours to asynchronous teaching, and 12 hours interactive learning activities. Course materials will be made available through the online e-learning platform over a six-week period, with new content released at the beginning of each week.
For comprehensive exam preparation and to acquire the knowledge and skills covered by the course, students are also required to complete the individual assignments available on the platform.
For comprehensive exam preparation and to acquire the knowledge and skills covered by the course, students are also required to complete the individual assignments available on the platform.
Exam Rules
The exam consists of a written test comprising 10 multiple-choice questions and 3 open-ended questions (two theoretical questions and one exercise). Each multiple-choice question has three answer options. Each correct answer is awarded 1 point, each incorrect answer results in a penalty of 0.33 points, while unanswered questions receive 0 points. Each of the three open-ended questions is worth up to 7 points. The maximum score for the written test is therefore 31 points. The final grade is expressed on a 30-point scale. A failing grade is awarded when the student demonstrates significant gaps in knowledge and understanding of the course topics, limited analytical and synthesis skills, frequent generalizations, limited critical thinking and judgement, and inappropriate use of technical language. A score of 18–21 is awarded to students who have acquired the fundamental concepts of the discipline and demonstrate essential analytical skills; their use of language is generally appropriate.A score of 22–25 is awarded to students who demonstrate a satisfactory understanding of the fundamental concepts, are able to navigate the different topics covered in the course, and demonstrate adequate analytical skills, using appropriate language. A score of 26–29 is awarded to students with a well-structured knowledge base who are able to independently apply and elaborate on the knowledge acquired; their use of language is appropriate and technically accurate. A score of 30 is awarded to students who demonstrate complete and in-depth knowledge, make extensive and up-to-date references, are able to establish connections across the different topics covered in the course, and express themselves with excellence and precision in technical language.Honours (cum laude) may be awarded to students who have achieved at least 30 points in the written test and the maximum score of 2 points in the Group Assignment. The award of honours also takes into account the completeness and depth of the student’s knowledge, the ability to integrate and critically elaborate on the different course contents, judgement skills, and the precise use of technical language. The course includes an assessed Group Assignment, which is distinct from the e-tivities and individual and group assignments carried out as part of Interactive Teaching (DI). These activities are formative and do not directly contribute to the final grade.The Group Assignment consists of an analysis of the Enterprise Risk Management framework of a real-world company. Working in groups, students analyse the company’s risk management system using corporate documentation and professional sources, focusing on the reference frameworks adopted, the processes used to identify, assess, and manage risks, the main risk categories, and the related mitigation strategies, with particular attention to emerging risks. The Group Assignment is assigned during the course and concludes with the submission and presentation of a brief report in PowerPoint format. Detailed instructions and deadlines are communicated through the e-learning platform. The Group Assignment is assessed for both attending and non-attending students and awards up to a maximum of 2 points, which are added to the score obtained in the written test, subject to a maximum final grade of 30/30, except where honours are awarded according to the criteria specified above. The assessment takes into account the accuracy and completeness of the analysis, the ability to apply risk management concepts and tools to a real-world business case, the quality and appropriateness of the sources used, critical thinking skills, and the clarity of the presentation.The results of the written test will be published on the e-learning platform.
For comprehensive exam preparation and to acquire the knowledge and skills covered by the course, students are also required to complete the individual assignments available on the platform.
For comprehensive exam preparation and to acquire the knowledge and skills covered by the course, students are also required to complete the individual assignments available on the platform.
Attendance Rules
The course will be delivered through an online e-learning platform and in class lectures.