Faculty of Economics University of Indonesia

BUSINESS RISK MANAGEMENT MGMT11010 Odd Semester 2011/2012 Tuesday, at 11.00 13.30 Lecturers: Dr Dewi Hanggraeni SE, MBA/ Hotbonar Sinaga S.E., Ririen Setiati Riyanti, SE, MM, CFP, Elevita Yuliati MSM, Fajar Trijatmiko, SE, MM, Galih Pandekar,SE, MSM, Muthia Pramesti, SE, MM, Adi Waskito, SE, MM, CFP.

Objective of this lecture is to explain to the student the concept of Risk Management, definition of Risk, classification and type of Risk. Among the several topics to be discussed, first lecture explains the meaning of risk and how the business can manage it properly in order to minimize the uncertainties may arise in running the company and to avoid as well as minimizing the possibility of loss (risk mitigation). The focus will be on the internal risks and the external risks and explain the process of risk management, methodology and discuss in more details risks faced by the business entity in general.

After the over all lectures, the students are expected to understand how companies manage its risks whether pure risk or speculative risk. Students are also required to read the text books and readings additional papers, materials and will have to prepare the paper(s) and suggested to visit web-sites in risk management. This lecture will be the basic for the students to take more advance lecture in Risk Management.

Text Book : - The complete guide to business risk management by Kit Sadgrove, Publisher Gower, United Kingdom, second edition, 2005 (KS), - Enterprise Risk Management: From Incentives to Controls by James Lam, John Wiley & Sons, Inc., 2003 (JL). - Pengelolaan Risiko Usaha by Dewi Hanggraeni, Lembaga Penerbit FEUI, 2010 (DH).

Course Assessment Overview The assessment for this subject is as follows : Assessment Items Participation & Quiz Assignment paper and presentation Mid Term Exam Final Exam Total Weight (%) 10 25 30 35 100

Schedule of lectures : Week Date Topics Introduction, business and risk, 1 definition of risk, risk classification,
September 13, 2011

References

KS -1, JL-1 DH - 1

methodology, traditional vs enterprise risk management Risk management process, the importance and role of risk management,

September 20, 2011

risk management expenses, risk management process, risk management & corporate governance

KS -1, JL-3 & 5 DH - 2

Risk Management standard, revenue

September 27, 2011

KS 2 DH - 3 KS 3 DH - 4 KS 4 & 5 DH - 5 KS 6 DH - 6 KS 7, DH - 7 KS-8 & 9

drivers, catastrophes, 4 types of risk Managing corporate risk Operation & Production risk,

October 4, 2011

October 11, 2011

purchasing/procurement problem Managing health and safety Preventing environmental damage

( Mid Exam)

6 7 8

October 18, 2011 October 25, 2011

November 15, 2011

Protecting against fire & act of God,

Maintaining security 9 Pre-empting fraud & Avoiding IT

November 22, 2011

DH - 8 KS-10&12 DH - 9 KS -11 & 13 DH - 10 KS-14 DH - 11 KS-15 DH - 12 KS-16 DH - 13 KS -19 DH - 14

disaster Staying financially healthy, litigation

10

November 29, 2011

risk Market leadership through risk

11

December 6, 2011

management Risk on people & Corporate ethics Contingency planning, crisis

12

December 13, 2011

13

December 20, 2011

management & business continuity Future risk change analysis ( Final Exam)

14

December 27, 2011