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2016/2017  BA-BINBO1601U  Risk Management of Multinational Enterprise: Creating Global Strategic Responsiveness

English Title
Risk Management of Multinational Enterprise: Creating Global Strategic Responsiveness

Course information

Language English
Course ECTS 7.5 ECTS
Type Mandatory
Level Bachelor
Duration One Quarter
Start time of the course Third Quarter, Spring
Timetable Course schedule will be posted at calendar.cbs.dk
Study board
Study Board for BSc in International Business
Course coordinator
  • Torben Juul Andersen - Department of International Economics and Management (INT)
Main academic disciplines
  • Globalization and international business
Last updated on 22-12-2016
Learning objectives
To achieve the grade 12, students should meet the following learning objectives with no or only minor mistakes or errors: Learning objectives – after completing the course students should be able to:
  • Characterize and describe the global risk environment of the firm
  • Identify, measure and monitor multinational financial and economic exposures
  • Analyze alternative hedging strategies to deal with financial and economic exposures
  • Identify fundamental operational and strategic risk exposures and assess their potential effects in future global business scenarios
  • Assess alternative ways to mitigate and deal with operational and strategic risks under uncertain and unpredictable multinational market conditions
  • Consider proper governance of the strategic risk management process in a multinational corporation operating in turbulent global markets
Prerequisites for registering for the exam
Number of mandatory activities: 1
Compulsory assignments (assessed approved/not approved)
One mandatory oral class presentation of a case study, to be evaluated on a pass/fail basis.
Examination
Risk Management of Multinational Enterprise: Creating Global Strategic Responsiveness:
Exam ECTS 7,5
Examination form Home assignment - written product
Individual or group exam Individual exam
Size of written product Max. 15 pages
Assignment type Report
Duration 72 hours to prepare
Grading scale 7-step scale
Examiner(s) One internal examiner
Exam period Spring
Make-up exam/re-exam
Same examination form as the ordinary exam
Description of the exam procedure

Students are expected to work diligently on the contents for their in-class presentations every week (where selected teams are called to present their analyses) as a practical exercise preparing for the requirements of the final exam. At the end of the course, the students are required to complete an individual 72-hour take-home exam submitted in the form of a written report. The report will require the students to analyse essential risk management issue (specified in the exam) related to the multinational case company they have analysed throughout the course.

Course content and structure

This course provides an overview of different financial, economic, and strategic exposures faced by multinational organizations engaged in global business activities and considers how the underlying risks can be managed. The risk management topic is perceived from different functional perspectives including international finance, insurance, management accounting, operations management and multinational corporate strategy. A number of formal risk management frameworks and standards are designed to address identifiable risks. We extend these approaches to also consider the ability to deal with uncertainty and unexpected events.

Learning objectives – after completing the course students should be able to:

 

  • Characterize and describe the global risk environment of the firm

  • Identify, measure and monitor multinational financial and economic exposures

  • Analyze alternative hedging strategies to deal with financial and economic exposures

  • Identify fundamental operational and strategic risk exposures and assess their
    potential effects in future global business scenarios

  • Assess alternative ways to mitigate and deal with operational and strategic risks under
    uncertain and unpredictable multinational market conditions

  • Consider proper governance of the strategic risk management process in a multinational corporation operating in turbulent global markets

 

 

The grading of individual exams will consider the clarity, structure and supportive evidence displayed in the submitted reports with respect to the listed learning objectives. Furthermore, the responses should use tools, models, theories, and logical reasoning deduced from this and other relevant courses, based on clearly defined concepts and data-driven measures. The report should be backed by publicly available data and/or descriptive examples extracted from a variety of secondary sources including annual reports, websites, press releases, industry analyses, professional reports, etc.

 

Content

The course gives an overview of conventional risk management techniques conceived across different academic disciplines, e.g., finance, economics, insurance, accounting, operations management, organizational behaviour, cognitive psychology, and international business strategy. The course will integrate diverse contributions to better understand the multifaceted underpinnings of the field including standard approaches like Enterprise Risk Management (ERM) frameworks and more unconventional perspectives of High Reliability Organizations (HROs) and Strategic Risk Governance approaches. The course will introduce conventional views on risk management from articles, book chapters, reports, and selective case studies but will also extend the scope of current views towards effective management of the unpredictable nature of the turbulent global business environment. 

Teaching methods
The course will be conducted over 6 weeks (with one 4-hour session and one 3-hour session per week) The first weekly session will take an interactive lecturing and class discussion format whereas the second weekly session will be devoted to class presentations of assigned case analysis. All course activities including the final exam will be conducted in English.
Student workload
Lecturers 42 hours
Preparartion + exam 164 hours
Expected literature

The course material will comprise a recent book and academic articles, policy studies, reports, working papers and case studies made available on-line.

 

Andersen, T. J., Garvey, M. and Roggi, O., Managing Risk and Opportunity: The Governance of Strategic Risk-Taking, Oxford University Press, Oxford, England, 2014. (ISBN: 978-0-19-968785-5)

Other readings:
Andersen, T. J., Global Derivatives: A Strategic Risk Management Perspective, Pearson Education, Harlow, England, 2006. (ISBN-13: 978-0-273-68854-9)

Last updated on 22-12-2016