ACCT5919 Business Risk Management - 2020

ACCT5919
Postgraduate
Term 2
6 Units of Credit
Online
Accounting
This course outline is for the current semester. To view outlines from other years and/or semesters, visit the archives

1. Course Details

Summary of Course

There is increasing disruption and uncertainty in an ever changing global world, with evolving and new technology, decreasing product life cycles, increasing customer and societal expectations, and increased risks associated with ongoing value creation by organisations. In this environment, there are numerous business risks (both external and internal to an organisation) to achieving value creation, examples include: competition; financial constraints; regulatory/legal requirements; ineffective corporate leadership; inappropriate strategy setting and execution; organisational structure and processes; and organisational capabilities. Developing effective ways of managing such business risks is critical for organisational sustainability. This course addresses this emergent field conceptually, technically and speculatively. Case studies and research are used throughout the course.

Teaching Times and Locations

Please note that teaching times and locations are subject to change. Students are strongly advised to refer to the Class Timetable website for the most up-to-date teaching times and locations.

View course timetable

Course Policies & Support

Course Aims and Relationship to Other Courses

  • To provide a practical understanding of the nature of business risks faced by organisations.

  • To examine the impact of risk on the decision-making processes of organisations.  

  • To review the techniques used to identify, assess and quantify these risks.  

  • To examine strategies and techniques used to mitigate the impact of these risks on an organisation, including the role of strategy formulation and implementation and the development of effective risk control strategies, processes and structures.  

This course will assist students to better understand the significance of adequately assessing and managing risk in the context of the management of business operations and in making informed business decisions. The course builds upon material in other management accounting course offerings.

2. Staff Contact Details

Position Title Name Email Location Phone Consultation Times
Lecturer-in-chargeMrAndrew BissettRoom 3109, Quadrangle Building – Ref E15+61 2 9385 5907By appointment
LecturerMrMark DonnellanRoom 3109, Quadrangle Building – Ref E15+61 2 9385 5907By appointment

Contact should be via email.

3. Learning and Teaching Activities

Approach to Learning and Teaching in the Course

​The course is conducted in a single 1.5 to 2 hour weekly online lecture. Students are required to listen to the pre-recorded lecture prior to each lecture and prepare the class and case study questions. The course makes extensive use of case studies to demonstrate real life examples of situations where specific issues in the area of risk management have been either poorly or well managed. Students are expected to prepare prior to the online lecture and actively engage in discussion related to the cases and the course material.

Learning Activities and Teaching Strategies

Students are required to listen to the pre-recorded lecture prior to each lecture and to prepare answer(s) for the questions related to each week's lecture topic and the questions relevant to the case study to be discussed or activity assigned for each lecture. Refer to course schedule. The case study examines how an organisation(s) managed or mismanaged major risk events that confronted the organisation. These case studies are intended to provide examples of the practical application of the risk management techniques and approaches that are examined during the course and the case for each week specifically addresses aspects of the topic examined during that week

Student knowledge will be tested through 2 online quizzes to be conducted in week 5 and week 9.

Students will complete an individual assignment which analyses the management of a major risk event. The assignment is intended to develop students’ analytical and report writing skills and is due in week 7.

5. Course Resources

The website for this course is on Moodle and should be consulted regularly. It will contain announcements, questions to assist with the weekly readings, class workshop questions and suggested solutions as well as other learning resources which will be posted from time to time.

The textbook for this course is a set of Course Notes & Readings which is available from the Co-op Bookshop.

The major reference material for the course is as follows:

  • Borge D, The Book of Risk, John Wiley and Sons, 2001.

  • Birkett WP, Business Risk Management Working Paper, UNSW, 2000.

  • Crockford N, Risk Management, Witherby & Co Ltd, 1991.

  • Courtney H, J Kirkland P Viguerie, Strategy Under Uncertainty, HBR Nov 1997.

  • Coutney H, 20/20 Foresight, Harvard Business School Press, 2001

  • Dembo R & A Freeman, The Rules of Risk, John Wiley and Sons, 1998.

  • Donaldson L, Performance Driven Organizational Change, Sage Publications 1999

  • HBR on Business and the Environment, Harvard Business School Press: 2000.

  • Hoffman D, Managing Operational Risk, John Wiley and Sons, 2002

  • Keasey K, S Thomson, M Wright (Eds.), Corporate Governance Economic Management, Oxford University Press, 1997

  • Krogut B & Kulatilaka N, Options Thinking and Platform Investments: investing in Opportunity, California Management Review, Winter 1994

  • Luehrman T, Strategy as a Portfolio of Real Options, HBR, Sep 1998

  • Matten C, Managing Bank Capital, John Wiley and Sons 2000

  • Pickford J (Ed), Financial Times Master Risk Volume 1: Concepts, Pearson Education 2001

  • Rayner, J, Managing Reputational Risk, John Wiley and Sons 2003

  • Ritchie B & D Marshall, Business Risk Management, Chapman & Hall, 1993.

  • Sadgrove K, The Complete Guide to Business Risk Management, Gower, 1996.

  • Samociuk M & Iyer N, A Short Guide to Fraud Risk, Gower, 2010.

  • Standards Australia, Risk Management, AS/NZS ISO 31000, SIA Global, 2018.

6. Course Evaluation & Development

Feedback is regularly sought from students and continual improvements are made based on this feedback. At the end of this course, you will be asked to complete the myExperience survey, which provides a key source of student evaluative feedback. Your input into this quality enhancement process is extremely valuable in assisting us to meet the needs of our students and provide an effective and enriching learning experience. The results of all surveys are carefully considered and do lead to action towards enhancing educational quality.

​Student feedback is important and each term the feedback is used to continually improve the course.

7. Course Schedule

Note: for more information on the UNSW academic calendar and key dates including study period, exam, supplementary exam and result release, please visit: https://student.unsw.edu.au/new-calendar-dates
Week Activity Topic Assessment/Other
Week 1: 1 June

Value, Risk and Culture and Organisation Frameworks:

  • Defining and Classifying Risk
  • The Evolution of Business Risk
  • The Role of Risk Management in Business
  • Organisations and their environment
  • Resource dependency & value creation
  • Organisational functioning in response to risk
  • Vaughan, Chapter 1
  • Crockford, Chapters 1 and 2
  • W Birkett, Extract Business Risk Mgt. Working Paper, pp26-37 and pp1-13
  • Donaldson, Performance Driven Organisational Change, Chapter 2
Week 2: 8 June

The Risk Management Process – Identifying Risk, & Risk Management Philosophies and Strategies:

  • Risk Identification and the types of risks
  • The Risk Management Process – ISO31000:2018
  • Accepting, avoiding and sharing risk
  • Establishing Risk Management frameworks
  • Vaughan, Chapter 6
  • W Birkett, Extract from Business Risk Management Working Paper, Section 4.3.
  • Borge, Chapter 4

Topic and Case Study Questions (Refer Moodle)

 

Week 3: 15 June

Crisis Management and Contingency Planning:

  • Can a crisis be avoided?
  • Contingency Planning for crises
  • The tactics of Crisis Management, what to do when risk management fails
  • Profiting from Crisis
  • Augustine, Managing the Crisis You Tried to Prevent, HBR Nov-Dec 1995, Reprinted in Harvard Business Review on Crisis Management, HBR 2000
  • Sadgrove Chapter 14

Topic and Case Study Questions (Refer Moodle)

Week 4: 22 June

The Risk Management Process – The Theory of Measuring Risk:

  • Risk Measurement Systems
  • Risk and Regret
  • The Risk & Return relationship
  • Dembo, Chapter 4
  • Crockford, Chapter 4

Topic and Case Study Questions (Refer Moodle)

Week 5: 29 June

The Risk Management Process - Measuring Risk (Cont.):

  • Statistics Refresher
  • Calculating Value at Risk
  • P Martin – Working Paper on Credit Risk Management
  • Beckstrom and Campbell - Understanding VaR

Topic Questions and Exercise (Refer Moodle)

Class Quiz 1

Week 6: 6 July

Capital at Risk and Performance Measurement:

  • Analysing the segments of the value at risk distribution
  • Assessing Capital at Risk and Earnings at Risk
  • Analysis and calculation of Risk Adjusted Performance Measures
  • C Matten – Managing Bank Capital Chapters 13 and 14

Class Exercise (Refer Moodle)

 

Week 7: 13 July

Risk and Strategy:

  • The use of Real Options in strategy formulation and valuation
  • Assessing the level of uncertainty confronting organisations
  • The shortcomings of traditional strategic evaluation techniques
  • Developing strategic responses
  • Courtney et al, Strategy Under Uncertainty
  • Luehrman, Strategy as a Portfolio of Real Options

Topic and Case Study Questions (Refer Moodle)

Individual Assignment Due

Week 8: 20 July

Control Systems and the Management of Risk:

  • The nature & structure of control systems
  • The levers of control within an organisation
  • Control structures & risk management
  • R Simons, The Levers of Control
  • W Birkett, Extract from Business Risk Management Working Paper, Section 4.4 and Section 2.2.

Topic and Case Study Questions (Refer Moodle)

Week 9: 27 July

Corporate Governance – Where the rubber meets the Road:

  • What is corporate governance?
  • Senior Management and the role of the CFO
  • Individual & organisational Influences on Decision Making and Behaviour
  • Risk Management and Shareholder Value
  • Keasey et al, Ch. 1
  • Donaldson, Performance Driven Organisational Change Ch. 7
  • PwC, CFO Architect of the Future, Ch. 5, Integrating Financial and Business Risk Management.

Topic and Case Study Questions (Refer Moodle)

Class Quiz 2

Week 10: 3 August

Understanding Specific Risks (Fraud and Physical Environment Risk):

Fraud Risks

  • Cyber Risks
  • Fraud and People Risk
  • Risk Management Strategies

Physical Environmental Risk

  • Environmental Risk and its impact of firms
  • Should Environmental Risk be avoided or can it be managed?
  • Can firms profit from the management of Environmental Risk
  • Sadgrove, Chapters 9, 11 and 13
  • Samociuk, Chapter 2
  • F Reinhardt, Bringing the Environment Down to Earth, HBR July-Aug, 1999
  • P Pritchard, Environmental Risk Management, Earthscan Publications 2000

Topic and Case Study Questions (Refer Moodle)

Course Revision

8. Policies and Support

Information about UNSW Business School protocols, University policies, student responsibilities and education quality and support.

Program Learning Outcomes

The Business School places knowledge and capabilities at the core of its curriculum via seven Program Learning Outcomes (PLOs). These PLOs are systematically embedded and developed across the duration of all coursework programs in the Business School.

PLOs embody the knowledge, skills and capabilities that are taught, practised and assessed within each Business School program. They articulate what you should know and be able to do upon successful completion of your degree.

Upon graduation, you should have a high level of specialised business knowledge and capacity for responsible business thinking, underpinned by ethical professional practice. You should be able to harness, manage and communicate business information effectively and work collaboratively with others. You should be an experienced problem-solver and critical thinker, with a global perspective, cultural competence and the potential for innovative leadership.

All UNSW programs and courses are designed to assess the attainment of program and/or course level learning outcomes, as required by the UNSW Assessment Design Procedure. It is important that you become familiar with the Business School PLOs, as they constitute the framework which informs and shapes the components and assessments of the courses within your program of study.

PLO 1: Business knowledge

Students will make informed and effective selection and application of knowledge in a discipline or profession, in the contexts of local and global business.

PLO 2: Problem solving

Students will define and address business problems, and propose effective evidence-based solutions, through the application of rigorous analysis and critical thinking.

PLO 3: Business communication

Students will harness, manage and communicate business information effectively using multiple forms of communication across different channels.

PLO 4: Teamwork

Students will interact and collaborate effectively with others to achieve a common business purpose or fulfil a common business project, and reflect critically on the process and the outcomes.

PLO 5: Responsible business practice

Students will develop and be committed to responsible business thinking and approaches, which are underpinned by ethical professional practice and sustainability considerations.

PLO 6: Global and cultural competence

Students will be aware of business systems in the wider world and actively committed to recognise and respect the cultural norms, beliefs and values of others, and will apply this knowledge to interact, communicate and work effectively in diverse environments.

PLO 7: Leadership development

Students will develop the capacity to take initiative, encourage forward thinking and bring about innovation, while effectively influencing others to achieve desired results.

These PLOs relate to undergraduate and postgraduate coursework programs.  Separate PLOs for honours and postgraduate research programs are included under 'Related Documents'.

Business School course outlines provide detailed information for students on how the course learning outcomes, learning activities, and assessment/s contribute to the development of Program Learning Outcomes.

RELATED DOCUMENTS

 

UNSW Graduate Capabilities

The Business School PLOs also incorporate UNSW graduate capabilities, a set of generic abilities and skills that all students are expected to achieve by graduation. These capabilities articulate the University’s institutional values, as well as future employer expectations.

UNSW Graduate CapabilitiesBusiness School PLOs
Scholars capable of independent and collaborative enquiry, rigorous in their analysis, critique and reflection, and able to innovate by applying their knowledge and skills to the solution of novel as well as routine problems.
  • PLO 1: Business knowledge
  • PLO 2: Problem solving
  • PLO 3: Business communication
  • PLO 4: Teamwork
  • PLO 7: Leadership development

Entrepreneurial leaders capable of initiating and embracing innovation and change, as well as engaging and enabling others to contribute to change
  • PLO 1: Business knowledge
  • PLO 2: Problem solving
  • PLO 3: Business communication
  • PLO 4: Teamwork
  • PLO 6: Global and cultural competence
  • PLO 7: Leadership development

Professionals capable of ethical, self-directed practice and independent lifelong learning
  • PLO 1: Business knowledge
  • PLO 2: Problem solving
  • PLO 3: Business communication
  • PLO 5: Responsible business practice

Global citizens who are culturally adept and capable of respecting diversity and acting in a socially just and responsible way.
  • PLO 1: Business knowledge
  • PLO 2: Problem solving
  • PLO 3: Business communication
  • PLO 4: Teamwork
  • PLO 5: Responsible business practice
  • PLO 6: Global and cultural competence

While our programs are designed to provide coverage of all PLOs and graduate capabilities, they also provide you with a great deal of choice and flexibility.  The Business School strongly advises you to choose a range of courses that assist your development against the seven PLOs and four graduate capabilities, and to keep a record of your achievements as part of your portfolio. You can use a portfolio as evidence in employment applications as well as a reference for work or further study. For support with selecting your courses contact the UNSW Business School Student Centre.




Academic Integrity and Plagiarism

Academic Integrity is honest and responsible scholarship. This form of ethical scholarship is highly valued at UNSW. Terms like Academic Integrity, misconduct, referencing, conventions, plagiarism, academic practices, citations and evidence based learning are all considered basic concepts that successful university students understand. Learning how to communicate original ideas, refer sources, work independently, and report results accurately and honestly are skills that you will be able to carry beyond your studies.

The definition of academic misconduct is broad. It covers practices such as cheating, copying and using another person’s work without appropriate acknowledgement. Incidents of academic misconduct may have serious consequences for students.

Plagiarism

UNSW regards plagiarism as a form of academic misconduct. UNSW has very strict rules regarding plagiarism. Plagiarism at UNSW is using the words or ideas of others and passing them off as your own. All Schools in the Business School have a Student Ethics Officer who will investigate incidents of plagiarism and may result in a student’s name being placed on the Plagiarism and Student Misconduct Registers.

Below are examples of plagiarism including self-plagiarism:

Copying: Using the same or very similar words to the original text or idea without acknowledging the source or using quotation marks. This includes copying materials, ideas or concepts from a book, article, report or other written document, presentation, composition, artwork, design, drawing, circuitry, computer program or software, website, internet, other electronic resource, or another person's assignment, without appropriate acknowledgement of authorship.

Inappropriate Paraphrasing: Changing a few words and phrases while mostly retaining the original structure and/or progression of ideas of the original, and information without acknowledgement. This also applies in presentations where someone paraphrases another’s ideas or words without credit and to piecing together quotes and paraphrases into a new whole, without appropriate referencing.

Collusion: Presenting work as independent work when it has been produced in whole or part in collusion with other people. Collusion includes:

  • Students providing their work to another student before the due date, or for the purpose of them plagiarising at any time
  • Paying another person to perform an academic task and passing it off as your own
  • Stealing or acquiring another person’s academic work and copying it
  • Offering to complete another person’s work or seeking payment for completing academic work

Collusion should not be confused with academic collaboration (i.e., shared contribution towards a group task).

Inappropriate Citation: Citing sources which have not been read, without acknowledging the 'secondary' source from which knowledge of them has been obtained.

Self-Plagiarism: ‘Self-plagiarism’ occurs where an author republishes their own previously written work and presents it as new findings without referencing the earlier work, either in its entirety or partially. Self-plagiarism is also referred to as 'recycling', 'duplication', or 'multiple submissions of research findings' without disclosure. In the student context, self-plagiarism includes re-using parts of, or all of, a body of work that has already been submitted for assessment without proper citation.

To see if you understand plagiarism, do this short quiz: https://student.unsw.edu.au/plagiarism-quiz

Cheating

The University also regards cheating as a form of academic misconduct. Cheating is knowingly submitting the work of others as their own and includes contract cheating (work produced by an external agent or third party that is submitted under the pretences of being a student’s original piece of work). Cheating is not acceptable at UNSW.

If you need to revise or clarify any terms associated with academic integrity you should explore the 'Working with Academic Integrity' self-paced lessons available at: https://student.unsw.edu.au/aim.

For UNSW policies, penalties, and information to help you avoid plagiarism see: https://student.unsw.edu.au/plagiarism as well as the guidelines in the online ELISE tutorials for all new UNSW students: http://subjectguides.library.unsw.edu.au/elise. For information on student conduct see: https://student.unsw.edu.au/conduct.

For information on how to acknowledge your sources and reference correctly, see: https://student.unsw.edu.au/referencing. If you are unsure what referencing style to use in this course, you should ask the lecturer in charge.


Student Responsibilities and Conduct

​Students are expected to be familiar with and adhere to university policies in relation to class attendance and general conduct and behaviour, including maintaining a safe, respectful environment; and to understand their obligations in relation to workload, assessment and keeping informed.

Information and policies on these topics can be found on the 'Managing your Program' website.

Workload

It is expected that you will spend at least ten to twelve hours per week studying for a course except for Summer Term courses which have a minimum weekly workload of twenty to twenty four hours. This time should be made up of reading, research, working on exercises and problems, online activities and attending classes. In periods where you need to complete assignments or prepare for examinations, the workload may be greater. Over-commitment has been a cause of failure for many students. You should take the required workload into account when planning how to balance study with employment and other activities.

We strongly encourage you to connect with your Moodle course websites in the first week of semester. Local and international research indicates that students who engage early and often with their course website are more likely to pass their course.

View more information on expected workload

Attendance

Your regular and punctual attendance at lectures and seminars or in online learning activities is expected in this course. The Business School reserves the right to refuse final assessment to those students who attend less than 80% of scheduled classes where attendance and participation is required as part of the learning process (e.g., tutorials, flipped classroom sessions, seminars, labs, etc.).

View more information on attendance

General Conduct and Behaviour

You are expected to conduct yourself with consideration and respect for the needs of your fellow students and teaching staff. Conduct which unduly disrupts or interferes with a class, such as ringing or talking on mobile phones, is not acceptable and students may be asked to leave the class.

View more information on student conduct

Health and Safety

UNSW Policy requires each person to work safely and responsibly, in order to avoid personal injury and to protect the safety of others.

View more information on Health and Safety

Keeping Informed

You should take note of all announcements made in lectures, tutorials or on the course web site. From time to time, the University will send important announcements to your university e-mail address without providing you with a paper copy. You will be deemed to have received this information. It is also your responsibility to keep the University informed of all changes to your contact details.



Student Support and Resources

​The University and the Business School provide a wide range of support services and resources for students, including:

Business School EQS Consultation Program
The Consultation Program offers academic writing, literacy and numeracy consultations, study skills, exam preparation for Business students. Services include workshops, online resources, individual and group consultations. 
Level 1, Room 1035, Quadrangle Building.
BUS.EQS.Consultations@unsw.edu.au
02 9385 4508

Communication Resources
The Business School Communication and Academic Support programs provide online modules, communication workshops and additional online resources to assist you in developing your academic writing.

Business School Student Centre
The Business School Student Centre provides advice and direction on all aspects of admission, enrolment and graduation.
Level 1, Room 1028 in the Quadrangle Building
02 9385 3189

UNSW Learning & Careers Hub
The UNSW Learning & Careers Hub provides academic skills and careers support services—including workshops, individual consultations and a range of online resources—for all UNSW students. See their website for details.
Lower Ground Floor, North Wing Chancellery Building.
learningcentre@unsw.edu.au
02 9385 2060

Student Support Advisors
Student Support Advisors work with all students to promote the development of skills needed to succeed at university, whilst also providing personal support throughout the process.
John Goodsell Building, Ground Floor.
advisors@unsw.edu.au
02 9385 4734

International Student Support
The International Student Experience Unit (ISEU) is the first point of contact for international students. ISEU staff are always here to help with personalised advice and information about all aspects of university life and life in Australia.
Advisors can support you with your student visa, health and wellbeing, making friends, accommodation and academic performance.
International.student@unsw.edu.au
02 9385 4734

Equitable Learning Services
Equitable Learning Services (formerly Disability Support Services) is a free and confidential service that provides practical support to ensure that your health condition doesn't adversely affect your studies. Register with the service to receive educational adjustments.
Ground Floor, John Goodsell Building.
els@unsw.edu.au
02 9385 4734

UNSW Counselling and Psychological Services
Provides support and services if you need help with your personal life, getting your academic life back on track or just want to know how to stay safe, including free, confidential counselling.
Level 2, East Wing, Quadrangle Building.
counselling@unsw.edu.au
02 9385 5418

Library services and facilities for students
The UNSW Library offers a range of collections, services and facilities both on-campus and online.
Main Library, F21.
02 9385 2650

Moodle eLearning Support
Moodle is the University’s learning management system. You should ensure that you log into Moodle regularly.
externalteltsupport@unsw.edu.au
02 9385 3331

UNSW IT
UNSW IT provides support and services for students such as password access, email services, wireless services and technical support.
UNSW Library Annexe (Ground floor).
02 9385 1333



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