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Risk and Crisis Management Process

Course developer

Prior knowledge

VadZ6009, Finance and Investment Management

Course abstract

The course provides a detailed knowledge and practical skills in risk and crisis management related to identifying the nature of threats, the nature of finding the best risks, accepting, transferring, avoiding or mitigating risks to ensure business continuity. The course provides knowledge on how risk management turns into crisis management.

Learning outcomes and their assessment

1. Knows and understands the main differences between crisis and risk management. Test.
2. Able to demonstrate in-depth knowledge of risk identification and assessment, types of risks, risk prevention measures, risk appetite and supervision of risk management processes.
3. Able to independently analyse and evaluate the company's risk management model. Independent work - preparation and presentation of a report
4. Able to prepare a report comparison - crisis management versus risk management. Test.
5. Able to responsibly plan and solve the assigned tasks. Independent work - preparation and presentation of a report.
6. Able to participate in classes and take responsibility for work results and their analysis. Able to present the results of independent work. Independent work - preparation and presentation of a report.
7. Able to recognize and explain in principle the main differences between crisis and risk management. Independent work - preparation and presentation of a report.
8. Is able to practically apply the acquired theoretical knowledge and practical skills about risk identification and assessment methods. Analyse the company's risk management model. Independent work - preparation and presentation of a report.

Course Content(Calendar)

1. The main difference between crisis and risk management. (lecture 1 hour)
2. Crisis management process. (lecture 1 hour)
3. Risk management process. Overview and key differences between crisis and risk management. What is crisis management? What is risk management? (lecture 1 hour, practical work 2 hours).
4. ISO 31000: standard. Risk management. Principles and guidelines. Enterprise risk management model according to ISO 31000 standard. (lecture 1 hour, practical work 2 hours).
5. Basic principles of risk management. (lectures 2 hours, practical work 2 hours).
6. Risk model and risk register. Types of risks. (lectures 2 hours, practical work 2 hours).
7. Risk identification methods. (lectures 2 hours, practical work 2 hours).
8. Risk assessment methods. (lectures 2 hours, practical work 2 hours).

Requirements for awarding credit points

The evaluation of the study course consists of:
1) The main difference between crisis and risk management. Comparison - Crisis Management versus Risk Management (Test 30%).
2) Risk management process. Risk identification and assessment methods. (Test 30%).
3) All topics (Independent work - preparation and presentation of a report 40%).

Description of the organization and tasks of students’ independent work

Prepare tests, regular assignments and presentations.

Criteria for Evaluating Learning Outcomes

The evaluation of the study course consists of tests and elaboration and presentation of permanent works. 10% corresponds to one point on the 10-point assessment scale.

Compulsory reading

1 .Aven T. Risk Analysis. 2nd Edition. Chichester, West Sussex, United Kingdom: Wiley, 2015., 197 p.
2. Hopkin P. Fundamentals of Risk Management: Understanding, Evaluating and implementing Effective Risk Management. 5th Edition. London: Kogan Page, 2018., p. 453 p.
3. Sobel P.J., Reding K.F. Enterprise Risk Management: Achieving and Sustaining Success. The Institute of Internal Auditors Research Foundation. (IIARF). USA: Florida. 2012., p. 225 p.
4. Sweeting P. Financial Enterprise Risk Management. International Series on Actuarial Science 2nd Revised edition. Cambridge University Press. 2017., p. 614 p.
2011. g. ir e-grāmata LLU FB datubāzē eBook Academic Collection (EBSCOhost) LLU tīklā vai ārpus LLU tīkla ar LLU IS parolēm (e-studiju paroles). Pieejams: https://search-ebscohost-com.ezproxy.llu.lv/login.aspx?direct=true&db=e000xww&AN=408966&site=ehost-live&scope=site

Further reading

1. ISO 31000: Risk management – A practical guide for SMEs. Šveice: Ženēva, 2015. Pieejams: http://www.iso.org/iso/iso_31000_for_smes.pdf
2. Madura J., Fox R. International Financial Management. Andover: Cengage Learning EMEA, United Kingdom, 2014, pp. 313. – 347.
3. Megginson W., Smart B.S., Lucey M.B. Introduction to Corporate finance. Cengage Learning EMEA, United Kingdom, 2008, p. 518. -559.
4. Pettere G., Voronova I. Riski uzņēmējdarbībā un to vadība. Rīga: Banku Augstskola. 2003., 175 lpp.
5. Riska vadības rokasgrāmata. Rīga: BDO Invest-Riga. 2005., 323 lpp.
6. Pike R., Nele B., Linsley P. Corporate Finance and Investment. Decision and Strategies.UK: Harlow, 2015, 161. - 206.; p. 331.-358.; pp.; 657. - 733. pp.
7. Sobel P.J. Auditor’s Risk Management Guide. Integrating Auditing and ERM. CPA, CIA. Chicago: CCH. 2007., p. 657 p.

Periodicals and other sources

1. Guide on Enterprise Risk Management. Pieejams: https://www.coso.org/Pages/erm.aspx
2. Riski valsts pārvaldes iestādē. Informatīvs materiāls iekšējiem auditoriem. Iekšējo auditoru institūts. 2012., 16 lpp. Pieejams: https://iai.lv/lv/getDownload?id=e1d0d6f90950af5cf7f7bcfafcd0715a&token=1644398257823
3. Šturca E. Risku vadības briedums Latvijas uzņēmumos. KPMG Baltics AS, 2020., 19 lpp. Pieejams: https://biznesam.swedbank.lv/upload/content/risku-vadibas-briedums-latvijas-uznemumos_kpmg.pdf
4. The Committee of Sponsoring Organizations of the Treadway Commission (COSO). Pieejams: http://www.coso.org/-erm.htm

Notes

Elective course for ESAF professional master's study program "Business Administration".