To explore the principles of risk management and the role of insurance within these principles.
Candidate who has knowledge of the fundamental principles of insurance as covered in IF1 Insurance, legal and regulatory or equivalent examinations.
By the end of the course, participants will be able to:
- Understand the meaning of risk.
- Understand the role and purpose of risk management.
- Understand the core elements of the risk management process.
- Understand the different categories of risk.
- Understand current trends in risk management.
- Understand the position of insurance within risk management.
- Understand the key risk management lessons learnt from major loss events.
- Pre and Post training test to measure knowledge and learning levels.
- Engage trainees in exercises and group activities.
- Evaluation form to be filled by trainees.
Method of assessment:
Mixed assessment consisting of two components, both of which must be passed. One component is a coursework assignment and one is a multiple choice question (MCQ) examination. The details are:
- An online coursework assignment using RevisionMate consisting of 10 questions which sequentially follow the learning outcomes. This must be successfully completed within 6 months of enrolment; and
- An MCQ exam consisting of 50 MCQs. 1 hour is allowed for this exam. This exam must be successfully passed within 18 months of enrolment.
Modula 1: Understand the meaning of risk
1.1 Explain the difference between risk and uncertainty.
1.2 Explain the basics of probability theory.
1.3 Discuss risk perception.
1.4 Explain the difference between pure and speculative risk.
Modula 2: Understand the role and purpose of risk management
2.1 Explain the evolution of the discipline of risk management.
2.2 Outline the benefits of risk management.
2.3 Explain key roles and responsibilities for risk management (board, managers, risk function etc).
2.4 Explain the relationship between risk management, compliance and the audit function.
Modula 3: Understand the core elements of the risk management process
3.1 Outline the risk management process.
3.2 Explain the purpose and contents of a risk register.
3.3 Explain the various risk management standards that exist.
3.4 Explain the various risk management tools and techniques (identification, assessment, monitoring, control and financing).
3.5 Explain the regulatory and corporate governance environment affecting risk management.
Modula 4: Understand the different categories of risk
4.1 Define and categorise the different forms of risks (e.g. various financial, operational, insurance risks, strategic and reputation).
4.2 Discuss difficult to categorise risks.
4.3 Examine the link between cause, events and effects.
Modula 5: Understand current trends in risk management.
5.1 Discuss the principles of Enterprise Risk Management (ERM) and Governance Risk and Compliance (GRC) and how this affects risk management.
5.2 Explain the role of the Chief Risk Officer and Risk Committees.
5.3 Explain the concepts of risk aggregation and correlation.
Modula 6: Understand the position of insurance within risk management
6.1 Explain the role of insurance as a risk transfer mechanism.
6.2 Explain the role of an insurance intermediary in supporting risk management.
6.3 Discuss alternatives to insurance (captives, alternative risk transfer, self-insurance).
Modula 7: Understand the key risk management lessons learnt from major loss events
7.1 Explain why risk management systems can fail.
7.2 Explain the consequences of the failure of risk management systems and the lessons we can learn from past loss events.