Theory of Risk and Applications
| Code | School | Level | Credits | Semesters |
| BUSI4453 | Business | 4 | 20 | Spring UK |
- Code
- BUSI4453
- School
- Business
- Level
- 4
- Credits
- 20
- Semesters
- Spring UK
Summary
This module introduces students 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.
Target Students
Core module forMSc Risk Management students. Also available to MSc Exchange students.
Classes
- Two 2-hour lectures each week for 11 weeks
Total 200 hours: 44 hours contact hours 156 Hours independent study (100 hours self directed study; 28 hours coursework preparation and 28 hours exam preparation)
Assessment
- 40% Coursework: Individual coursework, 1,500 words.
- 60% In-Person Exam (1-hour-30-minute): In-person exam.
Educational Aims
To provide a conceptual framework necessary for an understanding of decision taking under risk and uncertainty, to use this framework to explore issues in markets such as those for gambling and insurance, and to appreciate the related empirical literature.Learning Outcomes
Knowledge and understanding:
This module develops a knowledge and understanding of:
• Markets - the development and operation of markets for resources, goods and services
• Theories, models, frameworks, related empirical work, tasks and roles of management
Intellectual Skills:
This module develops:
• Being able to think critically and be creative: manage the creative processes in self and others; organise thoughts, analyse, synthesise and critically appraise. This includes the capability to identify assumptions, evaluate statements in terms of evidence, detect false logic or reasoning, identify implicit values, define terms adequately and generalise appropriately
• Being able to solve complex problems and make decisions: establish criteria, using appropriate decision-making techniques including identifying, formulating and solving business problems; and the ability to create, identify and evaluate options; the ability to implement and review decisions
• Using information and knowledge effectively in order to abstract meaning from information and to share knowledge, including the use of quantitative skills
Professional Practical Skills:
This module develops:
• Effective performance within team environments and the ability to recognise and utilise individuals' contributions in group processes and to negotiate and persuade or influence others; team selection, delegation, development and management. Leadership and performance management: selecting appropriate leadership style for different situations; setting objectives, motivating, monitoring performance, coaching and mentoring
• The ability to recognise the need for and initiate change and to be able to manage change