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2018/2019  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, Governance and Business (EGB)
Main academic disciplines
  • Globalization and international business
Teaching methods
  • Face-to-face teaching
Last updated on 26-06-2018

Relevant links
Learning objectives
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
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. 10 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 weekly in-class presentations where selected teams show 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. Class presentation is an integrated part of the course and should be seen as a preparation for the final exam. The exam report requires that students explain the theoretical rationales for essential risk management analyses specified in the exam that can be related to the multinational case company studied throughout the duration of the course.

 

The grading of individual exams will consider the clarity, structure and supportive evidence displayed in the submitted report 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. Conclusions should be supported by reliable evidence including data and information from public sources like annual reports, websites, press releases, industry analyses, professional reports, etc.
Course content and structure

The course discusses 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. These approaches are extended to also consider the ability to deal with uncertainty and unexpected events.

 

Conventional risk management techniques are introduced from different academic disciplines, such as, 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 formal Enterprise Risk Management (ERM) frameworks and more unconventional perspectives of High Reliability Organizations (HROs) and strategic risk-taking 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 towards effective management of unpredictable events in the turbulent global business environment. 

 

 

 
Description of the teaching methods
The course is conducted over a 6 week-period with two 3-hour sessions per week. The sessions combine interactive lecturing and class discussion with student presentations to the class of assigned case analyses.

Students will be assigned to working groups of 5-6 members to study a company throughout the course chosen from a positive list provided by the lecturer. It is the responsibility of the students to engage with a group by the end of the first week of classes.
Feedback during the teaching period
The lectures will be interactive requiring students to participate combined with student presentations on concrete case analyses that receive in-class feedback
Student workload
Lecturers 42 hours
Preparartion + exam 164 hours
Expected literature

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

 

Other readings 

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

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

 

Andersen, T. J. Hallin, C. A. Global Strategic Responsiveness: Exploiting Frontline Information in the Adaptive Multinational Enterprise (Strategy Matters), Routledge, London, UK, 2017. (ISBN: 978-1-13-810463-8)

 
Last updated on 26-06-2018