European Master and Certification Program
in Risk Engineering and Management

FRME1-1:
Business Continuity Risks & Insurance

Course code: 128043
Language of instruction: English
Lecturers: Ph.D. Reto Schneider (SWICA Gesundheitsorganisation), Prof. Dr. Dr. h.c. Dirk Linowski (Steinbeis University Berlin), Dipl.-Kfm. Jacob Kleinow (TU Bergakademie Freiberg The University of Resources)
Assessment: Defined in the module

Short description

Technical risks in factories and industrial plants can be a cause or a contributing factor of the business continuity. The final outcome of the technical/engineering activities is practically always seen on the background of business implications and implications/impacts on the business activities of a company. Insurance and financial hedging aspects will be introduced as the most relevant practical aspects linking the engineering and business side of the company operation and asset management.

Objectives

The course provides advanced knowledge about:

- contribution of technical risks in the industrial plants to the business continuity,

- insurance aspects,

- company operation and asset management and

- handling an insurance contract.

Target Attendees / Participants

Students of Steinbeis Master of Business Administration

Course Content by Units

Unit 1: Introduction, fundamentals of corporate finance

  • Introduction to 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: 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
  • Excursus: Underwriting and insurance contracts
  • Case studies & External example (will be brought in directly by industry): Insurance of industrial objects

Unit 3: Financial hedging of commodity and currency risk

  • Toward an Integrated risk model
  • Binomial models and Black-Scholes approach to the value options in an arbitrage-free-world
Unit 4: Review of main course issues and preparation for the final exam

Teaching Methods

The course includes:

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

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: FRME1-1:, generated on November 19, 2018)