Course code VadZ4054

Credit points 3

Risk Management

Total Hours in Course81

Number of hours for lectures16

Number of hours for seminars and practical classes16

Independent study hours49

Date of course confirmation19.06.2019

Responsible UnitInstitute of Business and Management Science

Course developer

author lect.

Madara Dobele


Prior knowledge

Mate2030, Mathematical Statistics

VadZ1018, Business Information Management

VadZ4010, Management

VadZ4027, Entrepreneurship

VadZ4038, Management

Course abstract

The course provides knowledge of the essence and principles of risk management, its importance in business and its practical application. The course introduces students to risk management techniques and risk assessment methods in order to prevent or limit the negative impact of risks in a company by developing a risk management system.

Learning outcomes and their assessment

1. Students will be able to: demonstrate the knowledge of risk causes and factors, the basic classification of risks and the classification principles – practical assignments, independent work.
2. Demonstrate the knowledge of risk assessment methods and stages, risk assessment scales and their role and application – group work.
3. Demonstrate the knowledge of the process, terminology, strategies and methods of risk management, an understanding of the readiness of an enterprise to manage risk prevention and of risk culture and risk tolerance – test.
1. Analyse risks by their classification, identify the type of the risk and describe effects of the risk on the performance of an enterprise – practical assignment.
2. Apply qualitative risk assessment methods and independently assess risks on risk assessment scales, create a risk profile and rank the risks by employing a risk map, a MARCI chart and a risk interaction map, reasonably select a proper risk assessment method for the risk profile and develop the risk management program – independent work.
3. Comprehend the role and importance of risk communication and identify the ways of risk communication and analyse the process of it – practical assignment.
4. Analyse and compare risk assessment methods and scales, assess an enterprise risk profile and identify risk functions in the enterprise and comprehend principles of decision making in risk conditions – test.
5. Identification of global risks, determination of impact and scale, analysis of possible solutions – practical assignment.
7. Responsibly plan the completion of the assignments given – independent work, practical assignments.
8. Engage in group work and reasonably communicate on how to perform assignments and achieve results – practical assignments, group work.
8. Present the results of a study (enterprise risk assessment) – independent work.
1. Independently employ risk assessment methods and reasonably interpret the results – independent work, practical assignments.

2. Identify and classify risks in entrepreneurship, assess their causes, factors and functions and find solutions to enhancing risk management, is able to identify and argue the complexity and importance of global risks in society – practical assignments, tests.

Course Content(Calendar)

1. Nature of the risk, cause and factor of the risk, evaluation and implementation of the importance of risk management in the enterprise: standards and guidelines, risk results, risk functions (lecture - 2 hours, practical work - 1 hour).
2. Risk management process and organization, risk management systems in the enterprise, risk management object and subject, risk management models (lecture - 2 hours, practical work - 1 hour).
3. Risk culture, tolerance and risk appetite, enterprise's readiness to undertake risk assessment (lecture - 1 hour, practical work - 1 hour).
4. Risk identification - process and methods, risk classification methods, risk type analysis, specification (lecture - 2 hours, practical work - 1 hour).
5. Establishment of the risk register, risk assessment, risk analysis techniques and methods (lecture - 2 hours, practical work - 2 hours).
6. Risk ranking and prioritization, risk interaction map, risk maps and profile creation (lecture - 2 hours, practical work - 1 hour).
7. Test - risk management process, terminology, strategies, risk culture and risk tolerance (practical work - 1 hour).
8. Development of action strategies for the enterprise's risk profile, minimization methods, application and evaluation of techniques, development of risk management program (lecture - 2 hours, practical work - 2 hours).
9. Risk element in decision making, use of risk management results in decision making (lecture - 1 hour, practical work - 1 hour).
10. Risk communication assessment in the enterprise (lecture - 1 hour, practical work - 1 hour).
11. Test - risk profile in the enterprise, action strategies in risk management, risk management program, decision-making in risk conditions, principles of risk communication (practical work - 1 hour).
12. Risk assessment in the enterprise - presentation of the independent work (practical work - 2 hours).

13. Risk in modern society, global risks, their impact levels and potential solutions (lecture - 1 hour, practical work - 1 hour).

Requirements for awarding credit points

Formal test with a mark. The mark consists of:
- 30 points for tests – 2 tests about study course’s topics,
- 40 points for practical tasks – 3 practical tasks about topics: analysis of risk types, risk communication analysis, identification and assessment of global risks;
- 30 points for the independent task – enterprise’s risk identification, assessment, analysis, risk management program development and analysis.
10 points are equal to one point on a 10-point marking scale.

Practical, independent tasks un tests must be submitted only within the time set for them.

Description of the organization and tasks of students’ independent work

Studies of study course’s materials and literature.
Preparation and presentation of practical and independent tasks.

Preparing for tests.

Criteria for Evaluating Learning Outcomes

Study course assessment is a formal test with a mark consisting of a cumulative results from study course assessments.

Compulsory reading

1. Wolke T. Risk Management. München: De Gruyter Oldenbourg, 2017, 360 p.
2. Hopkin P. Fundamentals of Risk Management. 5th Edition. New York: Kogan Page, 2018, 453 p.
3. Šuškeviča J., Šembelis R., Golko D. u.c. Riska vadības rokasgrāmata. Rīga: Dienas Bizness, 2005, 244 lpp.
4. Jaunzems A. Riska analīze un vadīšana. Ventspils: Ventspils Augstskola, 2009, 362 lpp.
5. Aven T. Risk Analysis. Second Edition. West Sussex: John Wiley & Sons, 2015, 197 p.
6. Lehtonens J., Siliņa Ruta, Ābelniece Baiba. Riska un krīzes komunikācija. Rīga: Biznesa augstskola Turība, 2011, 198 lpp.

7. Hillson D. The Risk Management Handbook: A Practical Guide to Managing the Multiple Dimensions of Risk. London: Kogan Page, 2016, 316 p.

Further reading

1. Pettere G, Voronova I. Riski uzņēmējdarbībā un to vadība: Mācību līdzeklis. Rīga: Banku augstskola, 2003, 176 lpp.
2. Hillson D. Exploiting Future Uncertainty: Creating Value From Risk. Farnham, Surrey: Routledge, 2010, 220 p.
3. Frīmens E. u.c. Ārējā riska vadība (HBR). Rīga: Lietišķās informācijas dienests, 2010, 192 lpp.
4. Hillson D., Murray-Webster R. A Short Guide to Risk Appetite. Burlington: Routledge, 2012, 147 p.
5. Vose, D. Risk Analysis. A Quantitative Guide. John Wiley & Sons Publishers, 2000, 342 pg.
6. Walker R. Winning With Risk Management. Singapore: World Scientific, 2013, 234 p.
7. Pinto C.A. Operational Risk Management. New York: Momentum Press, 2015, 128 p.
8. Riski lauksaimniecībā un privātajā mežsaimniecībā: monogrāfija. Jelgava: LLU, 2005, 657 lpp.
9. Lauksaimniecības un pārtikas risku vadīšana: monogrāfija. Jelgava: LLU, 2007, 544 lpp.

10. Bowers D. Risk Management: Past, Present and Future Directions. New York: Nova Science Publishers Inc., 2016, 147 p.

Periodicals and other sources

1. ISO: 3100 Risk Management,
2. COSO. Enterprise Risk Management – Integrated Framework,
3. Forbes, Rīga: SK Media. ISSN 1691 – 6018

4. iBizness, Rīga: Izdevniecība iŽurnāli. ISSN 2256-0882


Field professional specialization study course for the ESAF professional Bachelor programme “Entrepreneurship and Business Management”. Restricted elective study course for the ESAF academic Bachelor programme “Economics”.
Elective study course for other study programmes.