The aim of this module is to introduce the key principles of Enterprise Risk Management ("ERM") within an organisation (e.g. insurance companies, banks, pension schemes). ERM involves the integration of risk management across an organisation, rather than treating each individual risk which an organisation faces separately. Students should gain an understanding of the implementation and application of ERM; as such successful students in MA909 will acquire skills which are applicable to a diverse range of organisations and scenarios. A number of syllabus items are highly technical - students will be introduced to a number of concepts such as copulas and GARCH models, whilst developing concepts introduced under CT6, CT8 and CA1. As such students intending to study this module should be confident with material studied in the CT6 and CT8 syllabuses. Outline syllabus: ERM framework and processes, risk classification, modelling risks and correlations, identifying, measuring and managing risks across an organisation, economic capital, application of quantitative techniques/models such as copulas, extreme value theory, credit risk models, GARCH models.
Marks on this module can count towards exemption from the professional examination ST9 of the Institute and Faculty of Actuaries. Please see http://www.kent.ac.uk/casri/Accreditation/index.html for further details.
Standard Delivery - Total contact hours: 72
Tutorial Delivery - Total contact hours: 36
Teaching methods will differ according to the number of students registered on the module. The standard format, for more than 6 students registered:
Method of assessment
80% Examination, 20% Coursework
The students are provided with the textbook Sweeting (2011) Financial Enterprise Risk Management, Cambridge. The following textbook is also recommended: J Lam (2006) Enterprise Risk Management: From Incentives to Controls, Wiley
The students will be provided with the study notes published by the Actuarial Education Company for Subject ST9 – Enterprise Risk Management.
See the library reading list for this module (Canterbury)
The intended subject specific learning outcomes. On successfully completing the module students will be able to:
1 Demonstrate knowledge and understanding of complex techniques applicable to solve problems in Enterprise Risk Management in the context of current professional actuarial practice.
2 Demonstrate knowledge and understanding of complex current issues in Enterprise Risk Management in the context of current professional actuarial practice.
3 Demonstrate a high level of understanding of the main body of knowledge for the module.
4 Demonstrate skill in calculation and manipulation of the material written within the module.
5 Apply a range of concepts and principles of Enterprise Risk Management in various contexts.
6 Demonstrate skill in solving problems in Enterprise Risk Management by various appropriate methods.
7 Demonstrate skills in the specific mathematical and statistical techniques used in the actuarial practice of Enterprise Risk Management and their application to solving problems in that subject.
8 Demonstrate understanding of the current practical applications of the module material.
The intended generic learning outcomes. On successfully completing the module students will be able to:
1 Demonstrate ability for logical argument.
2 Demonstrate ability to work with relatively little guidance.
3 Demonstrate high-level problem-solving skills, relating to qualitative and quantitative information, demonstrating self-direction and originality of thought.
4 Demonstrate communications skills, covering both written and oral communication, with the ability to communicate clearly to both specialist and non-specialist audiences using the appropriate information technology.
5 Demonstrate judgemental skills.
6 Demonstrate numeracy and computational skills.
7 Demonstrate time-management and organisational skills, as evidenced by the ability to plan and implement efficient and effect modes of working, and to act autonomously.
8 Demonstrate study skills needed for continuing professional development.
9 Demonstrate decision-making skills in complex situations.
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Credit level 7. Undergraduate or postgraduate masters level module.
- ECTS credits are recognised throughout the EU and allow you to transfer credit easily from one university to another.
- The named convenor is the convenor for the current academic session.
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