"The Global Financial Crisis has heightened awareness of risk, which is the likelihood of danger, harm, or loss. Calculating risk can consider how likely an event is to happen, and assess the effect if it does," says Associate Professor John Evans, deputy director of the Centre for Pensions and Superannuation at the Australian School of Business.
"There is a risk return equation in every business decision - companies need to work out what that risk is, price that risk, and compare it with the return on investment. Students on the new Master of Risk Management (MRM) will learn how to calculate risks, anticipate them, and control unfortunate events - such as cyclones, political events, stock market crashes, or even the Global Financial Crisis. This will reduce the impact if an unfortunate event strikes."
The new Master of Risk Management is part of a portfolio of new and revamped courses which start in 2013 at the Australian School of Business.
"The move means for business students we can now introduce a wide ranging program at both graduate and undergraduate level to meet the demand for risk management specialists in the financial sector," says Associate Professor Evans.
"Risk is all around us. The program covers not only financial risk but also much broader risks such as environmental, climate and legal risks. MRM students will be able to select either a financial or a technical focus. Risk can come from uncertainty in financial markets, accidents, and natural disasters. By recognising and monitoring risks there is the opportunity to reduce their impact on stakeholders."
Associate Professor Ramaprasad Bhar from the School of Risk and Actuarial Studies says the curriculum for the new Masters of Risk Management will examine the role of new computer systems in detail. "The program addresses the institutional arrangements and management systems that emerge to address risk and uncertainty in modern societies. A vital part of the program is that the risks inherent in Information systems and technology need to be identified and managed because they underpin the operation of most organisations. These risks relate to the correct operation of the systems themselves, the integrity and security of the data, intellectual property and the development and implementation of change management systems."
"Another key facet of the risk management process is the regulatory and legal risk environment in which businesses operate. The students are made aware of legal risks and liabilities, and learn strategies to manage risk exposure arising in the legal environment of commerce."