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2023/2024  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 (also offered as elective)
Level Bachelor
Duration One Quarter
Start time of the course Fourth Quarter, Summer
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, Goverment and Business (EGB)
Main academic disciplines
  • Globalisation and international business
Teaching methods
  • Face-to-face teaching
Last updated on 14-02-2023

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 deal with operational and strategic risks under uncertain and unpredictable global market conditions
  • Consider proper governance of the risk management process in a multinational enterprise that operates across turbulent global markets
  • Determine accepted principles of professional business conduct considering broader stakeholder concerns and societal issues
  • Understand the role of ethics and corporate values related to responsible business practices
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
Release of assignment The Assignment is released in Digital Exam (DE) at exam start
Duration 72 hours to prepare
Grading scale 7-point grading scale
Examiner(s) One internal examiner
Exam period Summer
Make-up exam/re-exam
Same examination form as the ordinary exam
Description of the exam procedure

At the end of the course, the students are required to complete an individual 72-hour take-home exam in the form of written answers to posed questions reported on eight text pages. The final exam report requires that students explain the theoretical rationales for essential risk management issues specified in the exam related to the general course contents, case companies studied during the course, and other relevant examples.

 

The grading of individual exams will consider the clarity, structure and supportive evidence displayed in the submitted report with respect to the general course contents and the listed learning objectives. The responses should use tools, models, theories, and logical reasoning deduced from the course and other relevant sources based on clearly defined concepts. Any deductions should be supported by proper references and/or convincing argumentation and evidence including information and data from public sources.

 

 
Course content, structure and pedagogical approach

 

The course will discuss different financial, economic, operational, and strategic exposures faced by multinational organizations engaged in global business activities and considers how the underlying exposures and risk events can be managed. The risk management topic is perceived from different functional perspectives including international financial management, insurance, management accounting, global value-chain management and multinational corporate strategy. A number of formal risk management frameworks and standards designed to address identifiable risks are discussed. These approaches are extended to also consider the ability to deal with uncertainty and unexpected events. There is further considerations of effects imposed by core values and responsible multinational management.  
 
Conventional risk management techniques are introduced from different academic disciplines, such as, financial economics, 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 class sessions attempt to combine on-line lectures with open discussions (as far as possible) with active student involvement around some group activities where students are assumed to be familiar with the assigned course readings for more fruitful class engagement.

Students are expected to work diligently to prepare for each of the class sessions working in assigned groups on course readings, cases, and analyses as a productive way to prepare for the final exam
Feedback during the teaching period
The lectures attempt to be interactive requiring students to participate actively in class discussions on course readings and case analyses that generate in-class feedback. Considering the size of the class, feedback from teachers is supplemented by peer-to-peer interactions in group work. Online tools for group work and quizzes will be used to facilitate both interactions. In addition, office hours will be offered by the course coordinators, although these are not intended to be a substitute for participation in classes.
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 14-02-2023