English   Danish

2025/2026  KAN-CPOLV2505U  Strategic Risk Leadership: Engaging a world of risk, uncertainty, and the unknown

English Title
Strategic Risk Leadership: Engaging a world of risk, uncertainty, and the unknown

Course information
Language English
Course ECTS 7.5 ECTS
Type Elective
Level Full Degree Master
Duration One Quarter
Start time of the course Second Quarter
Timetable Course schedule will be posted at calendar.cbs.dk
Study board
Study Board of Global Business and Politics
Course coordinator
  • Torben Juul Andersen - Department of International Economics, Goverment and Business (EGB)
Main academic disciplines
  • Management
  • Organisational behaviour
  • Strategy
Teaching methods
  • Face-to-face teaching
Last updated on 14-02-2025

Relevant links
Learning objectives
After completing the course students should be able to:
  • adopt basic risk management approaches to assess and monitor major exposures
  • analyze alternative approaches to deal with economic, operational, and strategic risks
  • determine accepted principles of professional risk management and leadership conduct
  • understand the role of behaviors, ethics, and values in responsible business practices
  • discern different leadership approaches to deal with abrupt and disruptive contexts
Course prerequisites
A BSc degree with general knowledge about methods and analytical concepts from management, strategy, finance, and organization studies.
Examination
Strategic Risk Leadership: Engaging a World of Risk, Uncertainty, and the Unknown:
Exam ECTS 7,5
Examination form Home assignment - written product
Individual or group exam Group exam
Please note the rules in the Programme Regulations about identification of individual contributions.
Number of people in the group 2
Size of written product Max. 15 pages
The students can choose to submit an individual home assignment in which case the size of the written product is max. 10 pages.
Assignment type Report
Release of assignment Subject chosen by students themselves, see guidelines if any
Duration Written product to be submitted on specified date and time.
Grading scale 7-point grading scale
Examiner(s) One internal examiner
Exam period Winter
Make-up exam/re-exam
Same examination form as the ordinary exam
*if the student fails the ordinary exam the course coordinator chooses whether the student will have tohand in a revised product for the re- take or a new project.
Description of the exam procedure

Students must submit a project formulation (<1 page) presenting the intended topic for a study with a preliminary outline and proposed method to received feed-back on the framing, the research process, and the ensuing project execution. The feedback can offer a preliminary assessment on topical relevance, structure, methodology, analysis of data, and eventual writing of a final report. The topic must be consented by the instructor.

 

The exam project can address an identified research question, a relevant business/societal issue, or a case study chosen and outlined by the individual student based on her/his specific areas of interest. The project formulation is a prerequisite to obtain feedback on the final exam project from the instructor to be submitted directly to the instructor no later than class session 9. 

 

The exam report will be subject to internal grading that considers the clarity, structure and supportive evidence displayed in the submitted report with respect to the listed learning objectives and course content. The paper should demonstrate proper use of relevant tools, models and theories with logical reasoning around clearly defined concepts supported by facts-based insights and reliable information. Statements and claims must be supported by justifiable deductions and/or evidence from credible sources including data, scientific studies, professional reports, case analyses, executive testimonies, business magazines, newspapers, etc.

 

References to underpinning perspectives, theories, frameworks, or models should be cited, e.g., (Kasper et al., 2000), with a complete list of references added to the text. The page limit excludes front page, reference list and possible appendices. Only add an appendix if it provides genuine support to reported findings where all key points must be included directly in the text to be considered.
Course content, structure and pedagogical approach

The course provides a general overview of economic, operational, and strategic exposures faced by international organizations with activities across multiple national markets and considers how related risk events can be handled and managed. Strategic risk management assumes different functional perspectives, e.g., financial markets, operations, accounting, management controls, strategy-making, governance, human behavior, cognition, and ethics. The formal risk management frameworks attempt to address identifiable risks, but this approach is extended to consider practices that can deal with (true or radical) uncertainty and an unknown future.

 

The course attempts to advance critical thinking on enterprise risk management in open class discussions and exercises analyzing (often well-known) organizations that demonstrate possibilities and challenges from real case situations applying a rich source material. It outlines modern risk management practices and considers how leaders can deal (more) effectively with contemporary environments. The shortcomings of current practices are addressed with an intent of developing effective approaches to deal with exposures we face today.
Research-based teaching
CBS’ programmes and teaching are research-based. The following types of research-based knowledge and research-like activities are included in this course:
Research-based knowledge
  • Classic and basic theory
  • New theory
  • Teacher’s own research
  • Methodology
  • Models
Research-like activities
  • Development of research questions
  • Analysis
  • Discussion, critical reflection, modelling
  • Students conduct independent research-like activities under supervision
Description of the teaching methods
The class sessions attempt to combine lectures with open discussions and active student involvement garnered with in-class activities. Every class session expects students to be familiar with assigned readings and cases for more fruitful class interactions.

Students are expected to work diligently to prepare for class sessions and engage with insights that can benefit collective learning in the class.

The course will try to engage practicing risk managers to join some of the class sessions to provide first-hand insights from experienced leaders.

At the end of the course, students are required to complete a written report, which provides an opportunity to apply material studied during the course to deal with a self-chosen topic of particular interest and relevance to the course.
Feedback during the teaching period
Each student can receive personal feedback to frame the topic of the exam project, plan the research process, and support the ensuing project execution. The feedback can offer a preliminary assessment of the project in terms of relevance, structure, methodology, data analysis, and writing a good report.

To ensure formal feedback on the exam project, students should submit a project formulation (<1 page) no later than class session 9. The instructor is also available for discussions via email, scheduled office meetings, or Teams conversations throughout the duration of course sessions.

The class sessions encourage comments and questions with open discussions about observed organizational practices displayed in various case studies and corporate examples that will offer ample opportunities to obtain professional and collegial feedback on relevant course work.
Student workload
Lectures 30 hours
Preparation for classes 100 hours
Feedback and exam paper 76 hours
Expected literature

The course material will comprise a textbook garnered with references to various academic articles, book chapters, policy studies, professional reports, working papers, and case studies that will be accessible on-line.

 

Textbook:  Torben J. Andersen and  Peter C. Young (2022). Strategic Risk Leadership: Context and Cases, Routledge, Oxon, UK/New York, NY [ISBN 9780367709389]

 

Proposed readings: (subject to possible changes and updates)

 

Core articles:

 

Andersen, T. J. (2015). Strategic adaptation, in Wright, J. D. (ed.), International Encyclopedia of the Social & Behavioral Sciences (2nd edition), 12, pp. 501-507.

 

Andersen, T. J. (2017). Corporate responsible behavior in multinational enterprise, International Journal of Organizational Analysis, 25(3), pp. 485-505. 

 

Andersen, T. J., Sax, J. and Giannozzi, A. (2022). Conjoint effects of interacting strategy-making processes and lines of defense practices in strategic risk management: An empirical study, Long Range Planning, 55(6): 21.

 

Bromiley, P., McShane, M., Nair, A. and Rustambekov, E. (2015). Enterprise risk management: Review, critique, and research, Long Range Planning, 48(4), pp. 265-276.

 

Courbage, C. and Golnaraghi, M. (2022). Extreme events, climate risks and insurance: Issues and practice, The Geneva Papers on Risk and Insurance, 47, 1-4.

 

Flyvbjerg, B. (2021), Top ten behavioral biases in project management: An overview. Project Management Journal, 52(6), pp. 531–546.

 

Frigo, M. L. and Læssøe, H. (2012). Strategic risk management at the LEGO Group, Strategic Finance, 93(2), pp. 27-35. 

 

Husted, B. W. 2005. Risk management, real options, and corporate social responsibility, Journal of Business Ethics, 60, pp. 175-183.

 

Pernell, K., Jung, J. and Dobbin, F. (2017). The hazards of expert control: Chief risk officers and risky derivatives. American Sociological Review, 82(3), 511-541.

 

Power, M. 2009. The risk management of nothing. Accounting, Organization and Society, 34(6-7), 849-855.

 

Shefrin, H. (2020). The psychology underlying biased forecasts of COVID-19 cases and deaths in the United States. Frontiers in Psychology, 11, pp. 1-11.

 

Uhl-Bien, M. and Arena, M. (2017). Complexity leadership: Enabling people and organizations. Organizational Dynamics, 46(1), 9-20.

 

 

Chapters:

 

Andersen, T. J. and Sax, J. (2020). ’Introduction’, Chapter 1 in Strategic Risk Management: A Research Overview. State of the Art in Business Research (START) - Book Series. Routledge, Abingdon, Oxon, UK, pp. 1-10.

 

Andersen, T. J. and Sax, J. (2020). ’Background, concepts, and frameworks’, Chapter 2 in Strategic Risk Management: A Research Overview. State of the Art in Business Research (START) - Book Series. Routledge, Abingdon, Oxon, UK, pp. 11-28.

 

Andersen, T. J., Garvey, M. and Roggi, O. (2014). ‘Risk, risk management, and risk governance’, Chapter 1 in Managing Risk and Opportunity, Oxford University Press, pp. 5-34.

 

Andersen, T. J., Garvey, M. and Roggi, O. (2014). ‘Risk, uncertainty, and proactive risk-taking’, Chapter 2 in Managing Risk and Opportunity, Oxford University Press, pp. 35-67.    

 

Mitroff I. I. and Silvers, A. 2010. ‘Screwing up royally - An introduction to errors of the third and fourth kind’, Chapter 1 in Dirty Rotten Strategies: How We Trick Ourselves and Others Into Solving the Wrong Problems Precisely, Stanford Business Books, pp. 1-28.

 

Weick, K. E. and Sutcliffe, K. M. 2001. ‘What business can learn from high reliability organizations’, Chapter 1 in Managing the Unexpected: assuring high performance in an age of complexity, Jossey-Bass, San Francisco, pp. 1-23.

 

 

Reports:

 

Anderson, D. J. and Eubanks, G. (2015). Leveraging COSO across the three lines of defense. Committee of Sponsoring Organizations of the Treadway Commission.

BIS. (2015). Guidelines: Corporate Governance Principles for Banks. Bank for International Settlements, Basel, Switzerland.

 

COSO. (2014). How the COSO frameworks can help - Improving organizational performance and governance. Committee of Sponsoring Organizations of the Treadway Commission.

 

COSO. (2017). Enterprise risk management integrating with strategy and performance. Committee of Sponsoring Organizations of the Treadway Commission.

 

FERMA/ECIIA. (2010). Guidance on the 8th EU Company Law Directive - article 41, Guidance for boards and audit committees.

 

FERMA/ECIIA. (2011). Guidance on the 8th EU Company Law Directive. Audit and Risk Committees News from EU Legislation and Best Practices.

 

FERMA/ECIIA. (2014). Guidance on the 8th EU Company Law Directive - article 41, Guidance for boards and audit committees, Part 1.

 

IIA. (2013). The three lines of defense in effective risk management and control. IIA Position Paper, The Institute of Internal Auditors, Altamonte Springs, FL.

 

Investigation Committee on the Accident at Fukushima Nuclear Power Stations of Tokyo Electric Power Company (2012). Final Report on the Accident at Fukushima Nuclear Power Stations of Tokyo Electric Power Company.

 

IRM. (2002). A Risk Management Standard. The Institute of Risk Management, London, UK.

 

IRM. (2010). A Structured Approach to Enterprise Risk Management. The Institute of Risk Management, London, UK.

 

IRM. (2018). Standard Deviations – A Risk Practitioners Guide to ISO 31000. The Institute of Risk Management, London, UK.

 

ISO 31000: 2009 Risk Management - Principles and Guidelines. International Organization for Standardization. Geneva, Switzerland.

 

OECD. (2014). Risk Management and Corporate Governance. OECD Publishing, Paris, France.

 

 

Cases:

 

British Petroleum: From Texas City to the Gulf of Mexico and Beyond

 

Lehman Brothers (A)(B)

 

Nokia – The Rise and Fall of an Icon

 

Porsche (A)(B)(C)(D)

 

Transocean (A)(B)
Last updated on 14-02-2025