INTERNATIONAL BURCH UNIVERSITY
Faculty of Economics and Social Sciences
Department of International Business
2014-2015

SYLLABUS
Code Name Level Year Semester
IBS 132 Risk Management in International Business Undergraduate 1 Spring
Status Number of ECTS Credits Class Hours Per Week Total Hours Per Semester Language
6 125 English

Instructor Assistant Coordinator
Malcolm Duerod, Senior Teaching Assistant Malcolm Duerod Erkan ILGÜN, Assoc. Prof. Dr.
malcolm.duerod@ibu.edu.ba malcolm.duerod@ibu.edu.ba no email

This course introduces the basics of risk management in international business. In addition, explores issues of risk management faced by companies and individuals and discusses how to protect the company and values on the international level. The subject covers the general process of risk management, property and insurance, life and health insurance, annuities and employee benefits. Defining risk in international business (Specifics of international business environment, Country-specific ris

COURSE OBJECTIVE
The subject develops skills needed for independent work and decision-making in the field of risk management in the international exchange of goods and services. The student acquires the knowledge required to identify risks, assess the exposure to risk and the knowledge needed to make a decision about which risk management methods to apply in concrete cases.

COURSE CONTENT
Week
Topic
  1. Risk Management in International Business Overview Syllabus
  2. Objective of Risk Management
  3. Quiz #1 (Chapter 1 & 2)
  4. Risk Idenfication and Measurement
  5. Insurer Ownership and Structure
  6. Insurance Pricing
  7. Midterm Exam
  8. Risk Aversion
  9. Insurability of Risk
  10. Risk Management and Shareholder Wealth (Harrington Chapter 8)
  11. Risk Retention and Risk Reduction Decisions
  12. Home, Auto, Life Insurance
  13. Commercial Insurance
  14. Workers Compensation and Employee Injuries
  15. Final Exam

LABORATORY/PRACTICE PLAN
Week
Topic
  1. Definition of Risk; Types, RM Process & Methods
  2. Loss Control
  3. Cost of Risk
  4. Quiz
  5. Insurance Pricing
  6. Example Homework
  7. Midterm Exam
  8. Risk Management by Individuals
  9. Case study

  1. Pooling and Diversification
  2. Quiz
  3. Financial Hedging with Derivatives
  4. Home, Auto, Life Insurance
  5. Government Pension and Retirement Theory
  6. Conclusion and Final Exam Review

TEACHING/ASSESSMENT
Description
  • Lectures
  • Presentation
  • Project
  • Assignments
  • Case Studies
Description (%)
Method Quantity Percentage (%)
Quiz212
Homework18
Project120
Midterm Exam(s)125
Presentation15
Final Exam130
Total: 100
Learning outcomes
  • To develop students’ ability to identify, assess and manage the risks that are inherent in international business transactions
  • To reinforce students’ capacities of strategic analysis and application in an international context
TEXTBOOK(S)
  • Principles of Risk Management and Insurance, George E. Rejda, Michael McNamara, 2013, 12th Edition, Pearson Series in Finance, ISBN: 9780132994927, Compulsory.
  • Essentials of Risk Management, Crouhy, Michel, Galai, Dan, and Mark, Robert, The McGraw-Hill Companies, Inc., 2006, ISBN 007-142966-2. Compulsory.

ECTS (Allocated based on student) WORKLOAD
Activities Quantity Duration (Hour) Total Work Load
Lecture (14 weeks x Lecture hours per week)14228
Laboratory / Practice (14 weeks x Laboratory/Practice hours per week)14114
Midterm Examination (1 week)122
Final Examination(1 week)122
Preparation for Midterm Examination11414
Preparation for Final Examination11515
Assignment / Homework/ Project6530
Seminar / Presentation5420
Total Workload: 125
ECTS Credit (Total workload/25): 5