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Modules (subjects) are the basic building blocks of any qualification. Use the Module Browser to view module details like the syllabus, evaluation criteria, lecturer and estimated costs. For undergraduate modules you will also be able to view the lecture timetable.

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Risk Management (EBFV211)

This module is presented as follows in 2024:
  • SUMMERSTRAND CAMPUS SOUTH: Full-Time (A7)

    Can be used as a major: No
    Offered in: Term 1+2
    Credit value: 14
    Estimated fees: R4360
    Lecturer: PANDIE, R

  • SUMMERSTRAND CAMPUS SOUTH: Full-Time (A1)

    Can be used as a major: No
    Offered in: Term 1+2
    Credit value: 14
    Estimated fees: R4360
    Lecturer: PANDIE, R

Syllabus

PURPOSE

The overall module objective is to provide students with a broad perspective of risk management and insurance and to provide a conceptual framework for making risk management and insurance decisions so as to increase business value and individual welfare.

LEARNING OUTCOMES

• Understand and explain what risk and the different types of risk entail.
• Demonstrate an understanding of the risk management processes and methods.
• Understand and explain the objective of risk management and the concept of cost of risk and illustrate how managing the cost of risk enhances value.
• Illustrate how statistical models can be utilised for assessing individual and business risk exposure.
• Understand and explain pooling arrangements and illustrate how the diversification of risk can take place in different contexts.
• Demonstrate an understanding of insurer ownership, financial and operational structures and illustrate how insurers reduce insolvency risk through diversification.
• Understand and explain insurer regulation in South Africa.
• Understand and discuss insurer insolvencies, solvency ratings and solvency regulation.
• Understand and discuss insurer pricing and demonstrate your understanding by calculating the fair premium.
• Demonstrate insight into risk aversion and risk management by individuals & corporations.
• Understand and discuss insurability of risk, contractual provisions and legal doctrine.
• Demonstrate an understanding of loss control as an effort to reduce expected losses in an individual’s life or company.
• Demonstrate an understanding of the main insurance and annuity products and calculate premiums for different term policies.
• Understand and explain the major types of employee benefits and group medical coverage.
• Understand and describe the main types of retirement funds.
• Understand and discuss workers compensation and the main provisions of the COID Act in South Africa.
• Understand and discuss the Government assistance schemes in South Africa.
• Demonstrate an understanding of how a firm can use Alternative Risk Transfer to retain a large portion of its potential losses and only transfer the risk of extremely high losses to another party.

CORE CONTENT

• Principles of management applied to managing risk.
• The concepts of risk.
• Corporate governance.
• Enterprise risk management.
• Pooling arrangements and diversification.
• Insurer pricing.
• Risk identification.
• Risk evaluation.
• Operational risk management.
• Risk response.
• Risk financing.
• Risk retention.
• Captive insurance companies.
• Insurance.
• Finite insurance.
• Capital market instruments.
• Composite financial strategies.

Evaluation criteria

100% Continuous assessment:

• 2x Semester tests (Final mark weight = 40%)
• 3x Tutorials (Final mark weight = 15%)
• 1x Assignment (Final mark weight = 15%)
• End of module assessment (Final mark weight = 30%)

MODERATION

Internal.

Prerequisites

• Mathematics For Accounting (MACV101) OR Financial Mathematics (STAV101)
• Business Statistics I (STAV102)

 

 

Evaluation criteria

 

Evaluation criteria

 

100% Continuous assessment:

• 2x Semester tests (Final mark weight = 40%)
• 3x Tutorials (Final mark weight = 15%)
• 1x Assignment (Final mark weight = 15%)
• End of module assessment (Final mark weight = 30%)

 

 

Prerequisites needed for this module

  • Mathematics For Accounting  (MACV101)
  • Business Statistics I  (STAV102)