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Internal Control and Risk Management (B-KUL-D0R51A)

6 ECTSEnglish39 Second term
Ottevanger Jeffrey (coordinator) |  Deprez Ludovic |  Ottevanger Jeffrey
OC Toegepaste economische wetenschappen FEB Campus Leuven

Aims

This course introduces enterprise risk management (ERM, hereafter). This course provides an understanding and application of methods of assessing and managing risk within organizations. In addition, it deals with different stages within the overall risk management process. Besides, it explains the relationship between ERM, strategy and controls. Furthermore, it covers the best practices of ERM (e.g., COSO ERM) and their implementations. 

Upon completion of this course, the student will be able to:

  • Understand, apply and analyze the issues involved in the risk management process of an enterprise.
  • Assess the different risks faced by an organization
  • Understand the key concepts related to ERM.
  • Understand the role of the internal audit function, senior management, the board of directors and the external auditor in ERM
  • Understand the link between ERM and strategy and controls, assess the strategies of enterprises, and apply the enterprise risk management to achieve the strategies.   
  • Identify novel risks and evaluate risk management in the midst of the crisis (Risk Management and Crisis Management)
  • Discuss how an organization might go about its ERM implementation and evaluate the effectiveness of ERM implementation.
  • Understand, apply, analyze, and evaluate the ERM frameworks (COSO and ISO).
  • Apply the techniques learned to new situations encountered in the working of an institution.

Previous knowledge

Upon the start of the course, the students should have a basic background in Business studies (30 ECTS) 

Is included in these courses of study

Activities

6 ects. Internal Control and Risk Management (B-KUL-D0R51a)

6 ECTSEnglishFormat: Lecture39 Second term
Deprez Ludovic |  Ottevanger Jeffrey
OC Toegepaste economische wetenschappen FEB Campus Leuven

Content

The course consists of lectures and case study workshops. The Lectures are used to convey background, critical information, and theories. Besides, the case study workshops are used to discuss case studies. The videos related to the lectures will be recorded during the class and be made available. However, due to cases' copyright, the video related to the case study workshop will not be recorded. It is thus recommended (not mandatory) that you attend the case study workshops. Reading assignments (textbook, articles, and cases) are to be completed prior to classes and are designed to help students participate in meaningful discussion regarding selected topics. 

In general, this course will follow the outline listed below.

  • Strategy (review) and the link between strategy and risk
  • Control (review) and the link between organizational control and risk
  • Risk Management concepts and Risk Management Process
  • Types of risks that an organization is facing 
  • ERM and Governance 
  • The link between ERM, Strategy, and Controls 
  • ERM frameworks (COSO, ISO)
  • ERM tools and techniques
  • Implementation of ERM
  • Financial industry and bank capital requirements (BASEL regulations)
  • Fraud in organizations
  • Crisis Management and Novel Risks

Course material

Used Course Material

  • Slides
  • COSO ERM 2017 and its compendium (via library)
  • Extra course material (e.g., scientific articles, guidelines, videos).
  • Cases and simulation (need to be purchased by the students)  

Recommended Reading (via Library)

  • Enterprise Risk Management: From Incentives to Controls (James Lam)
  • Implementing Enterprise Risk Management: Case Studies and Best Practices (Fraser, Simkins & Narvaez)
  • Implementing Enterprise Risk Management: From Methods to Application (James Lam)

Toledo·       

  • Toledo, and an online platform (e.g., Blackboard Collaborate) are being used for the learning activities.

Format: more information

Asynchronous online learning - Blended learning

Students are expected to critically and thoroughly study the theory, cases and examples.

During the semester students have to perform the following activities:

  • Make three take-home group assignments (case reports, a project paper and/or simulation). Afterward the deadline, the cases will be discussed in case study workshops.
  • Present the group assignments in class
  • Participate in a scientific activity (e.g. experiment on risk and control)
  • Participate in simulation/or risk game
  • Participate in group discussions

Evaluation

Evaluation: Internal Control and Risk Management (B-KUL-D2R51a)

Type : Partial or continuous assessment with (final) exam during the examination period
Description of evaluation : Written, Paper/Project, Report, Presentation
Type of questions : Multiple choice, Closed questions, Open questions
Learning material : None

Explanation


Features of the evaluation

  • The evaluation consists of group assignments (case reports, project) and a final exam.
  • The final exam is a written closed book on-campus exam with different type of questions (Multiple choice, open- and closed questions).
  • The group assignments are executed in groups of 2-4 students. The group assignments can also be done solo.

Determination of final grades

  • The grades are determined by the lecturer as communicated via Toledo and stated in the examination schedule. The results are calculated and communicated as a whole number on a scale of 20.
  • The final grade is a weighted score and consists of:
    • 50% Final exam
    • 50% Project and case reports
  • If there is a deficit score (<10/20) for the final exam, the exam grade becomes the final grade for the course. Hence, a minimum grade of 10 (out of 20) for the final exam is required to pass the course.
  • If the student does not participate at the exam, the final grade of the course will be NA (not taken) for the whole course. If the student does not participate at the project and/or case reports, the grades for this/these partial evaluation(s) will be a 0-grade within the calculations of the final grade.
  • If one of the set deadlines was not respected, the grade for that respective part will be a 0-grade in the final grade, unless the lecturer grants the student a new deadline. Request for a new deadline need to be motivated by grave circumstances.

Information about retaking exams

Second examination opportunity

  • The features of the evaluation and/or the determination of grades are the same between the first and second examination opportunity. However, no make-up group assignments will be available (except in the grave circumstances).