European Master and Certification Program
in Risk Engineering and Management

IVB-R13 BUSINESS
Business Continuity Risks & Insurance

Course code: 136484 (SEM)
Language of instruction: English
Duration of the course: 5 days (45h)
Lecturers: Ph.D. Reto Schneider (SWICA Gesundheitsorganisation), Prof. Dr. Dr. h.c. Dirk Linowski (Steinbeis University Berlin)
Assessment: Written Exam, Transfer Paper, [optional topic for Project Study Paper]

Short description

Complement other courses devoted to technical and engineering issues of risk management in industrial plants (petrochemical plants, process industry, power plants, etc.). Technical risks in the above plants can be a cause or a contributing factor in/for the business continuity and the final outcome of the technical/engineering activities is practically always to be seen on the background of business implications and implications/impacts to the business activities of a company. The insurance aspects are the most relevant practical aspect linking the engineering and business side of the company operation and asset management: therefore these will be tackled, too.

Objectives

The course provides advanced knowledge about
  • Contribution of technical risks in the industrial plants in/for the business continuity
  • Insurance aspects
  • Company operation and asset management

Target Attendees / Participants

  • BSc/MSc engineering working in industry, academia, banks, insurance companies
  • government and other stakeholders dealing with risks in industry

Course Content by Units

Unit 1: Introduction, fundamentals of corporate finance

  • Introduction to the course #13
  • Introduction in corporate finance
    • The value of money: time and risk
    • Net present value rules
    • Alternative decision rules (IRR, BE, FV)
    • Quantifying risk and expected return
    • Excursus: Sensitivity analysis
Unit 2: Intro - quantitative risk management
  • Scenarios and the derivation of statistical measure
  • Risk-return optimization
  • Value at risk
  • Excursus: Basel II
Unit 3: Modeling and estimating of risk: Insurance vs. financial hedging
  • Insurable and non-insurable events
  • Premise and the law of large numbers
  • Motivation: Computation of premise for life insurance
  • Liability and commercial property insurance
  • Reinsurance
  • Excursus: Underwriting and insurance contracts
  • Excursus: Solvency II
  • Case studies in Serbia
  • External example (will be brought in directly by industry): Insurance of industrial objects in Serbia -examples
Unit 4: Financial hedging of commodity and currency risk
  • Toward an Integrated risk modal
  • Binomial models and black-scholes approach the value options in an arbitrage-free-world
  • Excursus: Markowitz optimization with integer constrains
  • Excursus: Real options
Unit 5: Additional issues
  •  Analysis of Munich Re's: Environmental Report – Perspectives – "Today's ideas for tomorrow's world"
  • ISO-25999-2
Unit 6: Review of main course issues and preparation for the final exam

Unit 7: Final exam

Teaching Methods

The course includes:

  • introductory note explaining aim and structure of the course, and used methodology as well
  • ex cathedra lecturing following the defined units
  • number of computational examples for each unit
  • one case study from an insurance company
  • one individual and several collective exercises
  • preparation for final exam by repetition of all course units and main issues
  • final exam

Literature

  1. Textbook:
    Business continuity risks & Insurance
    Version 2, June 2010
  2. Transparencies:
    Unit 1: Introduction, fundamentals of corporate finance
    Unit 2: Intro - quantitative risk management
    Unit 3: Modeling and estimating of risk: Insurance vs. financial hedging
    Unit 4: Financial hedging of commodity and currency risk
    Unit 5: Additional issue -
  3. Certification material, version 2, March 2010


For more information about the European Master and Certification Program in Risk Engineering and Management in general, go the Homepage.
For more information about the European Master Program in Risk Engineering and Management in general, go the Master Study page.
To see more courses in the curriculum, go to The curriculum page, or by date and topic go to the Calendar of Courses page.
Contact: via email sti889@risk-technologies.com or phone +49 711 1839 781 or +49 711 1839 647
(Course profile ID: IVB-R13, generated on November 19, 2018)