RISK MANAGEMENT AND INSURANCE
 
Shandong University of Finance and Economics 
Course Code： (To be established)
Total Number of Instruction Hours:  51
Number of Credits：3
About this Course
Risk management and insurance is an introductory undergraduate course that teaches the fundamentals of risk management and insurance. At SDUFE, this is a compulsory course that undergraduates take in insurance. And it provides a solid foundation for risk management and insurance and thinking that can last throughout their education and subsequent professional careers, support the study in economics, business, management and other related fields. 
This course begins with an introduction to risk and the basic concepts that is common in insurance. Next, it introduces insurable loss exposures for learning about the common characteristics of both ordinary and extra-ordinary insurable loss exposures. We then turn our attention to risk management to understand how to apply the risk management process on firms' behavior. The nest part is about insurance occupations which offers the fundamental roles of agents, brokers and loss adjusters and explains the underwriters’ functions. The final section of the course provides an introduction to insurance contracts. These include the distinct characteristics of insurance contracts, elements of a valid contract and the categories of insurance contracts. 
By the end of the course, you will be able to understand introductory microeconomic theory, solve basic microeconomic problems, and use these techniques to think about a number of policy questions relevant to the operation of the real economy. 
Prerequisites and Preparation
Principles of economics. 
Course Goals 
After completing this course, students should have understood principles of risk management and insurance and how insurance solves problems for business firms, individual consumers, and society which help them develop a range of skills enabling them to solve risk and uncertainty questions. 
By the end of this course, students should be able to: 
l   Understand the concept of risk, risk management. 
l   Understand legal and financial nature of insurance.
l   Understand the characteristics of insurance contracts (the principle of indemnity, the utmost good faith, insurable interest, aleatory feature etc.). 
l   Understand how to apply risk management principles to a range of risk questions. 
l   Analyze cases by using characteristics of insurance contracts.
Course Components and Requirements  
l   Assigned readings 
l   Lectures 
l   Five problem sets 
l   One midterm exam 
l   Final Exam 
Assigned Readings 
Topical material and additional reading for class discussion may be assigned during the semester.  
 Deliverables and Grading  
                                                                                 
Method of evaluation and grading:  
1）There will be five mandatory problem sets which will be individually graded. At the end of the term students will have the best five homework grades cumulated up and this will count for 10% of the final course grade. 
2）There will be one midterm exam which count as 20% of the grade. 
3）There will also be a two hour final, which will be cumulative and cover all of the course materials. This will count as the remaining 70% of the grade.