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RSK 715 - Risk Financing C21 (Online Accelerated)

Academic Credit Value:
3 units
Course Delivery Mode:
Online
Hours of Study:
39 hours
Course Prerequisite(s):
N/A
Course Anti-requisite(s):
N/A
Instructor Name:
Adam Prokop
Course Dates:
05/31/2021 - 08/08/2021



Required Course Materials:
CRM 56 Risk Financing textbook and CRM 56 course guide, 6th edition
Optional Course Materials:
N/A
Course Description:

This course can be seen as the third course offering and continuation of the introductory course, Risk Financing, of the three part series of risk management courses.  It provides a broad understanding of the various risk financing techniques available for organizations to pay for losses.  Although the text emphasizes the financing options for hazard risk it also discusses the other major categories of risk, such as operational, financial, strategic risks from which losses may arise.  This course introduces the concept of paying for losses through various techniques or plans when the risk control efforts have either failed to prevent losses or a negative consequence of risk arises.  Such techniques include insurance, alternative risk financing solutions, hedging and more.  It is not a “business” finance course as most management students would think but rather a course that discusses how to effectively pay for losses, i.e. how the organization funds the payment of losses or negative consequences when they do occur.  Funds to pay for or offset losses can arise from internal sources such as cash flow or assets or from external sources such as shareholders, banks or insurance companies or even a combination of any of the above.

This course is ten weeks in length covering eleven chapters, two assignments and three quizzes. This is an accelerated version of the course, which moves at a brisk pace, but if you put the time in, you will find that it can be quite a rewarding experience!

Weeks 3, 6, and 8 all have group discussions. Your 10% participation mark will be derived from these 3 discussions, so please actively participate. 

Learning Outcomes:

The primary learning objective of this course is to gain an understanding of the different risk financing techniques or plans that are available for an organization to pay for or offset its losses and to explain how such plans may be combined to design an effective risk financing program.

In this course you will:

  • Understand what risk financing is and the sources of risk for an organization
  • Describe the various risk financing objectives
  • Explain how an organization can manage and allocate  its cost of risk
  • Learn the different types of risk financing  techniques available such as retention, transfer or a hybrid plan
  • Explain the advantages and disadvantages of the various risk financing plans presented
  • Understand alternative risk financing plans that are available including how capital markets can be used to finance losses
  • Understand the impact of accounting and taxation on risk financing plans
  • Describe non insurance contractual risk transfers and the legal principles affecting risk financing
Course Evaluation
Participation: Group Discussions 10%
Quiz #1: Chapters 1-4 10%
Quiz #2: Chapters 5-8 10%
Quiz #3: Chapters 9-11 10%
Assignment 1: Chapters 1 - 7  25%                          
Assignment 2: Chapters 8-11 35% 

Course Format:

This course emphasizes student participation through group discussions.  It is expected that students will read the assigned chapters per the weekly requirements. 

During Week 3, 6, and 8 in the course, you will be required to participate in active discussions with your group. Your participation grade will be based on this work. You will have from the beginning of the week until the end of the week to participate. The goal is to have an active dialogue among course participants. Each discussion question will have a topic/article posted to guide your discussion.

Instructor Online Sessions

During Week 4 and 7 of the course, there will be two online live or recorded sessions where the instructor will check in on students' progress in the course, answer questions about the assignments, and provide general guidance. Attendance is optional as the instructor will post the recorded session of the assignment overview and will also be available throughout the course for consultation on the assignments. 

Assignment Submission:
Course assignments are submitted to the appropriate A2L Assignment folder by the specified due date
Late Coursework:
Late assignments will be subject to a 2% per day late penalty (includes weekends and holidays) for up to seven (7) days. After this date, no assignments will be accepted and a grade of zero (0) will be applied. Extensions for course work must be approved by the instructor before the due date (see Academic Regulations), and will be granted for illness or emergencies only. Students may be asked to submit supporting documentation for an extension request. 

Policy & Procedures:

Academic Regulations (Attendance, Coursework, Tests/Exams):
In accordance to McMaster University’s General Academic Regulations, “it is imperative that students make every effort to meet the originally scheduled course requirements and it is a student’s responsibility to write examinations as scheduled.” Therefore, all students are expected to attend and complete the specific course requirements (i.e. attendance, assignments, and tests/exams) listed in the course outline on or by the date specified. Students who need to arrange for coursework accommodation, as a result of medical, personal or family reasons, must contact the course instructor within 48 hours of the originally scheduled due date. It is the student’s responsibility to contact the Program Manager/Program Associate at CCE to discuss accommodations and procedures related to deferred tests and/or examinations within 48 hours of the originally scheduled test/exam, as per policy. Failure to contact the course instructor, in the case of missed coursework, or the Program Manager/Program Associate, in the case of a missed test/examination, within the specified 48 hours window will result in a grade of zero (0) on the coursework/exam and no further consideration will be granted.

*Note: Supporting documentation will be required but will not ensure approval of accommodation(s).
Academic Integrity
(Please note that CCE will adhere to a zero tolerance application of the policy)

You are expected to exhibit honesty and use ethical behaviour in all aspects of the learning process. Academic credentials you earn are rooted in principles of honesty and academic integrity.  

Academic dishonesty is to knowingly act or fail to act in a way that result or could result in unearned academic credit or advantage. This behaviour can result in serious consequences, e.g. the grade of zero on an assignment, loss of credit with a notation on the transcript (notation reads: “Grade of F assigned for academic dishonesty”), and/or suspension or expulsion from the university.
It is your responsibility to understand what constitutes academic dishonesty. For information on the various types of academic dishonesty please refer to the Academic Integrity Policy, located at www.mcmaster.ca/academicintegrity.

The following illustrates only three forms of academic dishonesty:

  1. Plagiarism, e.g. the submission of work that is not one’s own or for which other credit has been obtained, including copying solution sets.
  2. Improper collaboration in group work. 
  3. Copying or using unauthorized aids in tests and examinations.
Academic Accommodations:

ACADEMIC ACCOMMODATION OF STUDENTS WITH DISABILITIES

Students with disabilities who require academic accommodation must contact Student Accessibility Services (SAS) at 905-525-9140 ext. 28652 or sas@mcmaster.ca  to make arrangements with a Program Coordinator. For further information, consult McMaster University’s Academic Accommodation of Students with Disabilities policy.

Academic Accommodation for Religious, Indigenous or Spiritual Observances (RISO)

Students requiring academic accommodation based on religious, indigenous or spiritual observances should follow the procedures set out in the RISO policy. Students will need to contact their instructors as soon as possible to make alternative arrangements for classes, assignments, and other coursework. It is the student’s responsibility to contact McMaster Continuing Education to discuss accommodations related to examinations. (if applicable)

On-line Elements:

Conduct Expectations:
As a McMaster student, you have the right to experience, and the responsibility to demonstrate, respectful and dignified interactions within all of our living, learning and working communities. These expectations are described in the Code of Student Rights & Responsibilities (the “Code”). All students share the responsibility of maintaining a positive environment for the academic and personal growth of all McMaster community members, whether in-person or online.

It is essential that students be mindful of their interactions online, as the Code remains in effect in virtual learning environments. The Code applies to any interactions that adversely affect, disrupt, or interfere with reasonable participation in University activities. Student disruptions or behaviours that interfere with university functions on online platforms (e.g. use of Avenue 2 Learn, WebEx or Zoom for delivery), will be taken very seriously and will be investigated. Outcomes may include restriction or removal of the involved students’ access to these platforms.

Copyright and Recording:
Students are advised that lectures, demonstrations, performances, and any other course material provided by an instructor include copyright protected works. The Copyright Act and copyright law protect every original literary, dramatic, musical and artistic work, including lectures by University instructors.

The recording of lectures, tutorials, or other methods of instruction may occur during a course. Recording may be done by either the instructor for the purpose of authorized distribution, or by a student for the purpose of personal study. Students who wish to record sessions need to acquire permission from the instructor. Students should be aware that their voice and/or image may be recorded by others during the class. Please speak with the instructor if this is a concern for you.

Turnitin.com:
Course Changes:

The instructor reserves the right to modify elements of the course and will notify students accordingly.

Extreme Circumstances:

The University reserves the right to change the dates and deadlines for any or all courses in extreme circumstances (e.g., severe weather, labour disruptions, etc.). Changes will be communicated through regular McMaster communication channels, such as McMaster Daily News, A2L and/or McMaster email.

Course Withdrawal Policy:

Policies related to dropping a course and course withdrawals are posted to the Centre for Continuing Education’s program webpage, FAQs & Policies (https://www.mcmastercce.ca/cce-policies#Dropping).

Storm Closure Policy:
In the event of inclement weather, the Centre for Continuing Education will abide by the University’s Storm Closure Policy: https://www.mcmaster.ca/policy/Employee/storm_emergency_policy.pdf, and will only close if the University is closed. All in-class courses, exams and room bookings by internal and external clients will be cancelled if the Centre for Continuing Education is closed. On-line courses will take place as scheduled.
Grading Scale:

Grade

Equivalent
Grade Point

Equivalent Percentages

A+

12

90-100

A

11

85-89

A-

10

80-84

B+

9

77-79

B

8

73-76

B-

7

70-72

C+

6

67-69

C

5

63-66

C-

4

60-62

D+

3

57-59

D

2

53-56

D-

1

50-52

F

0

0-49

Course Schedule:

Period

Module

Week 1

 

Read

  • Chapter 1: Introduction to Risk Financing
  • Chapter 2: Estimating Hazard Risk

 

Watch (Optional)

  •  Watch Instructor Presentations

 

Week 2

 

Read

 

  • Chapter 3: Transferring Hazard Risk through Insurance
  • Chapter 4: Self-Insurance Plans

 

Watch (Optional)

  • Watch Instructor Presentations

 

Week 3

 

Read

  • Chapter 5: Retrospective Rating Plans

 

Complete

  •  Discussion 1

 

Week 4

Read

  • Chapter 6: Reinsurance
  • Chapter 7: Captive Insurance

 

Watch

  • Watch Instructor Presentations (Optional)
  • Live or Recorded Session #1 – Assignment #1 Overview (Optional)

 

Complete

  • Quiz #1

 

Week 5

Complete

  • Assignment 1

 

Week 6

 

 

Read

  • Chapter 8: Contractual Risk Transfer

 

Watch (Optional)

  • Watch Instructor Presentations

 

Complete

  • Discussion 2

 

Week 7

 

Read

  • Chapter 9: Transferring Financial Risk

 

Watch

  • Watch Instructor Presentations (Optional)
  • Live or Recorded Session #2 – Assignment #2 Overview (Optional)

 

Complete

  • Quiz #2

 

Week 8

 

Read

  • Chapter 10: Transferring Hazard Risks to the Capital Markets

 

Watch (Optional)

  • Watch Instructor Presentations

 

Complete

  •  Discussion 3 Due

 

Week 9

 

Read

 

  • Chapter 11: Allocating Costs of Managing Hazard Risk

 

Complete

  • Quiz #3 Due

 

Week 10

Complete

 

  • Assignment #2