SVKM’s

NARSEE MONJEE INSTITUTE OF MANAGEMENT STUDIES

POST GRADUATE DIPLOMA IN MANAGEMENT
Program: PGDM Trimester: V
Course: Enterprise Risk Management Code:
Teaching Scheme Evaluation Scheme
Classroom Practical/ Tutorials Credit Continuous Term End
Session Groupwork Evaluation Examination
(TEE)
20 3 50% 50%
Course Rationale:
The intend to propose this course is to give better understanding to students to sort out world’s increasing
complexity, the speed of change creates greater amounts of uncertainty that can impact (both positively and
negatively) organizations overnight. Boards and senior management teams are realizing the need to more
proactively (versus reactively) manage risks to their business models and strategic plans. Thus, risk
management is becoming an expected core competency of all individuals who seek to be in executive
leadership positions. The course help to build core skill to students if they can apply subject concepts in their
existing job roles and even they can move to better leadership positions.

Course Objectives:
1. To enable students to ‘think risk ‘as an integral part of day-to-day business and be able to evaluate them so
as to develop sound risk management strategies for handling of risks.
2. To also equip students to develop a risk culture in an organisation.

Learning Outcomes:

After completion of the course, students would be able to:

1. Understand Risks at Project & Enterprise level and classify them in appropriate categories
2. Analyse risks qualitatively and quantitatively through their drivers and probability of occurrence of risk
and impact
3. develop a framework for handling of risks
4. develop an overall Risk Matrix for each project and the Enterprise as a whole
5. Create a sound approach towards creating a Risk Culture in an organisation

Pedagogy:
 The study plan comprises a mix of readings, classroom sessions, and hands-on sessions using Excel
Crystal Ball, project Presentation, live projects and assignments.

Textbook:
 Strategic Risk Taking- A framework for Risk Management, Aswath Damodaran, Wharton school
publishing, Pearson. Edition [AD], 2007.

Reference Books:
 Enterprise Risk Management: Today’s Leading Research and Best Practices for tomorrow’s Executives,
Fraser, J. & Simkins, B, John Wiley & Sons. Kolb Series in Finance [FR] 2010
 Implementing Enterprise Risk Management Case studies and Best Practices, Fraser, J. & Simkins, B.
&Narvaez, K.
 John Wiley & Sons. Kolb Series in Finance [FS], 2015;
 Guide to enterprise risk Management, Independent Risk Consulting [PT], Protivitti, 2006
Journals:
 Journal of Risk Management- A Palgrave Journal
 International Journal of Risk Assessment and Management

Links to websites:
 http://www.ucop.edu/enterprise-risk-management/_files/protiviti_faqguide.pdf
 http://vslir.iimahd.ernet.in:8080/xmlui/bitstream/handle/11718/11494/CMS-PP-217-
Greenfield_Airport_Development_in_India-151-Gupta_b.pdf?sequence=1&isAllowed=y
 https://www.honeywellprocess.com/en-US/explore/services/industrial-it-solutions/Pages/risk-
manager.aspx

Evaluation Scheme:
 Class Participation Hands-on 10 %
 Case Analysis 20 %
 Group Assignments/Project 20 %
 Term-End Examination 50 %
Total 100 %

Session Plan:
Session Description Learning Outcomes Pedagogy Tool Chapter

1 Risk Overview: What is Risk? Generic Understanding Discussion & Textbook:

Nature and scope, Distinction about Risks and its Case: Chapter 1
between Risk & Uncertainty; presence Lehman Brothers Ref Book
Overview of risk management /Discussion (PT- section
framework (http://som.yale.edu/site 1-10)
s/default/files/files/001-
2014-3A-V1-
LehmanBrothers-A-
REVA.pdf)
2 Risk Identification: Case study Understanding about PPT/Discussion Textbook:
Risk identification and Risk various types and its Case: Chapter 2
drivers, Impact & Impact classification and also Albert Pinto’s Dilemma
drivers. driving forces (Drafted case1)
3 Qualitative Analysis of Risk: Analyze risks using Case: Textbook:
Concept of Probability, Severity judgmental or Risk Assessment: A Chapter 4
and scope; understanding qualitative approach Case Study for
severity and probability Transportation Projects
occurrence of identified in India, T.H. Nguyen,
qualitative risk factors G. Bhagavatula,
F. Jacobs
http://www.ijaiem.org/
Volume3Issue9/IJAIE
M-2014-09-03-2.pdf
4 Quantitative Analysis of Risks: Analyse the risk (Using lab Sessions and Textbook:
Probabilistic Models and impact using Hands on) with real Chapter 6
interpretation of distribution of quantitative time data
risk Outcome, Risk assessment deterministic methods https://in.investing.com/
of random variables using- commodities/crude-oil-
Scenario manager; historical-data
5 Monte Carlo Analyse the risk (Using lab Sessions and Textbook:
Simulation(MCS), Value at impact using Hands on) with real Chapter 7
Risk (VAR) techniques for risk quantitative time data
Quantification probabilistic methods https://in.investing.com/
commodities/crude-oil-
1
Drafted case based on real life scenario
 historical-data
6 Fuzzy Logic Theory (FLT); Analyse the risk (Using lab Sessions and Textbook:
Decision Tree techniques for impact using Hands on) with Chapter 8
subjective risk Assessment; quantitative Strategic Electricity data
Real options methods (procured)
7 Risk Matrix: Allocating the Basic understanding of Class Discussion Textbook:
Risks to address priority for risk reporting in Chapter 10
Risk Handling; organizations with
reference to severity
and probability
8 Risk Register Apply techniques to Class Discussion Textbook:
Plot risk Chapter 10

9 Risk Mitigation & Modelling : Understanding of risk Class Discussion Ref book:
Frameworks for Risk mitigation and (PT- Section
Mitigation COSO; TARA; As modeling 25)
Low as Reasonably Practical
(ALARP) model
10-11 How to Distribute risks case Learn to flourish PPT/ class discussion/ Textbook:
Analysis- Accept; Mitigate; organization with Case: Infrastructure Chapter 9
Ignore; Transfer existing risks Bangalore International
Case Analysis (II) Airport Ltd.
http://vslir.iimahd.ernet.
in:8080/xmlui/bitstream
/handle/11718/11494/C
MS-PP-217-
Greenfield_Airport_De
velopment_in_India-
151-Gupta_b.pdf?
sequence=1&isAllowed
=y
12 Integrated risk Management Learn to work with BFSI- Catch Me
approach- Identification till nexus of risks and Through Movie-Catch if You can
Distribution come out from that Me if You can
situation https://www.youtube.c
om/watch?
v=m_c0sYzVyOQ
13 Enterprise strategic and Learn strategic and ERM at Mars, Textbook:
operation level risk operational level risks Incorporated- ERM for Chapter 11
Management effects on organization Strategy and Ref book:
operations- [FR,39 Part
https://prezi.com/ph8wr II]
ajqg1y4/erm-at-mars-
incorporated-erm-for-
strategy-and-operations/
14 Risk monitoring & control: Learn measures to Class Discussion Textbook:
Developing Framework for monitor and control Chapter 12
Monitoring & Control – Who, risks Ref Book:
When, What, Where & How (PT- Section
using Cases; Internal Control; 103)
Risk Register;
15 Control Environment for Apply control IT Services: Integrated
risk Managers measures to control Honeywell Inc. risk
Role of decision makers risk and increase Integrated risk management
business returns management and IT and IT Cyber
Cyber
(https://www.honeywell
process.com/en-
US/explore/services/ind
 ustrial-it-
solutions/Pages/risk-
manager.aspx
16 Risk Culture: Case Discussion Develop sound risk Value and Risk- Ref Book:
on Enterprise Risk management culture and reap the Enterprise Risk (FR Part II,
at Hydro 1-a company that benefits to Management at 59)
transformed its approach organization Statoil(http://www.icmr
towards risk Management and india.org/casestudies/ca
reaped the benefits of a sound talogue/Enterprise
Risk culture. %20Risk
%20Management/ERM
T-025.htm)
17 Relevance to SOX compliance Learn managing Class Discussion-Risk Ref Book:
for ERM organization risks Assessment: A Case (PT- section
under regulatory Study for 145)
norms Transportation Projects
in India, T.H. Nguyen,
G. Bhagavatula, F.
Jacobs
http://www.ijaiem.org/
Volume3Issue9/IJAIE
M-2014-09-03-2.pdf
18-20 Project Presentations on Risks Student presentations
Management