Principles of Risk Management

505101
Introduction and Course Overview

DR. LEEN GAMMOH

Dr. Leen Gammoh
Head of Business Administration Department
Assistant Professor at the Department of Risk Management – Faculty of Business and Finance

BSc. in Accounting from AUM

MSc. in International Management from the University of Southampton – UK
Ph.D. in Risk Management from the University of Southampton – UK
Office No., Location Office Hours E-mail Address

Mon Wed Thu 10:00-11:30

BA - S54 l.gammoh@aum.edu.jo
Tue Thu 11:30-13:00
What is your name?

What is your major?

What year are you in?

What do you expect to learn from this course?

Structure of lectures
Day: Monday • Review of last week
Time: 8:30-10:00 or • Overview of this week
11:30-13:00 • Lecture
Location:BB-S09 or BA- • Discussions/activities
G24

Day: Wednesday • Review of last week

Time: 8:30-10:00 or • Overview of this week
11:30-13:00 • Lecture
Location:BB-S09 or BA- • Discussions/activities
G24
 Rejda, G. (2020). Principles of Risk Management and Insurance
(14th Ed.). Pearson.
• This course introduces the concepts of risk, risk identification, assessment and evaluation, the
need for risk management, risk management practice, and Insurance as one tool of risk
management. Course
Description
• This course addresses both business and personal risk
• The course covers all types of risks; including natural (environmental); climate change risks;
business risks; and operational risks.
Course outline
Basic and support material to be covered
Weeks
Week 1: Introduction.

Week 2: Definitions of Risk; Loss exposures; Objective Risk; Subjective Risk; Chance of Loss.

Week 3: Definitions of Peril and Hazard, Classification of Risk: Pure and Speculative. Diversifiable non-diversifiable
Risk. Enterprise Risk, and systemic risk.

Week 4: Major Personal Risks and Commercial Risks. Burdens of Risks on Society.

Week 5: Meaning and Objectives of Risk Management.

Steps of the Risk Management process.
Week 6: Identifying Loss Exposures.
Measuring and Analyzing Loss Exposures.
Week 7: Risk Treatment Implementing and monitoring the risk management program.

Week 8/9: Midterm Exam

Week 9: Benefits of Risk Management. Personal Risk Management. Other types of risks

Week 10: risk register

Week 11: heat map

Week 12: ISO 31000

Week 13: Enterprise Risk Management.
Week 14: Enterprise Risk Management. Emerging Risks. Terrorism Risk. Environmental and Climate
Change risks. Insurance market dynamics.

Week 15: Presentations

Week 16: Final Exam
Assessment
Assessment Percentage When

Midterm Exam 30% Week 8/9

Attendance, Participation and discussions

10%
(face to face lectures)

Project 20% Week 15

Final Exam 40% Week 16

Total 100%
 Midterm exam
• A 55-minute, in class exam.
• Will contribute toward 30% of the course mark.
• The midterm exam will include material covered prior to it.

• Academic Calendar 2023/2024, approximately.

Dec 4th - 16th , 2023
 Attendance and Participation

• Attend lectures
• Ask questions in class
• Raise hand to answer questions
• Participate in class activities and discussions
 Project
• Group project which will contribute to 20% of the final mark.
• You will be put in a groups, and you have to work together.
• You will be given more details about what the project in due time, and you will have enough time to work
on it.
• The due date for the submission of the project is week 15.
 Final Exam

• Final exam will contribute toward 40% of the course mark.

• The exam will cover ALL the material covered during the semester.

• Academic Calendar 2023/2024, approximately.

o Jan 27th – Feb 6th , 2024
• E-learning/ Moodle
o Syllabus
o Slides (uploaded weekly)

• Book

• Discussions/ homework/ case studies/ examples

 Rules

• Lectures will start on time. Do NOT be late.

• After 5 minutes DO NOT ENTER THE LECTURE HALL

• Attend classes!

• No phones during lectures.

• No speaking to one another.

What is Risk?
And what is Risk Management ?
 Definitions of Risk
Risk: Uncertainty concerning the occurrence of a loss

In the insurance industry:

Risk is used to identify the property or life that is being considered for insurance

In economics and finance:

◦ Risk is used in situations where the probabilities of possible outcomes are known
◦ Uncertainty is used in situations where such probabilities cannot be estimated

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 Meaning of Risk Management

Risk Management: a process that identifies loss exposures faced by an organization and selects the
most appropriate techniques for treating such exposures

These risks stem from a variety of sources:

◦ financial uncertainties
◦ legal liabilities
◦ technology issues
◦ accidents and natural disasters.

DR. LEEN GAMMOH 19