Course Introduction

1
Course Introduction

• Robert Klein
• Introduction to
• Risk Management
• Insurance
• RMI 3500
• Fall 2007

2
What questions do recent mining accidents raise
about RISK?
3

• What is risk?
• Would you gamble your entire savings on a coin
  toss?
• How is insurance like and not like gambling?

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Why should you care about risk?

• Risk is the chance that you will lose something
  of value to you.
• We face many risks all the time some we know
  about, others not.
• We continually make choices about risk, sometimes
  consciously, most times not.
• Managing risk involves making good choices
  involving tradeoffs.
• Managing risk well is critical to personal lives
  and professional responsibilities.

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Whats this course about?

• Studying principles and institutions of risk and
  risk management, including insurance.
• We will analyze certain risks and how we might
  deal with them.
• Focus on risks to persons and firms and the use
  of insurance, other management methods.
• Many students find this course more useful than
  they expected.

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Course Topics

• Nature of risk and its management
• Economic concepts principles.
• Insurance and other risk management mechanisms
• Life, health, property and liability risks and
  insurance
• Employee benefits, retirement, and financial
  planning, social insurance
• Risks to firms
• Economic, legal, social, and governmental context
  for risk and insurance.

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Course Approach

• Emphasis on important principles, concepts and
  institutions.
• Students will be challenged to understand and
  apply their understanding of content.

• Use your time efficiently.
• PARTICIPATE!!!!!!!!!!!!!!!!!!!

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Method of Instruction

• Participatory lecture and discussion.
• Important to complete the assigned readings
  before class and be prepared to discuss.
• Class lectures and discussions will focus on
  enhancing students understanding of important
  concepts and information.
• I will guide students as to the most important
  areas of concentration.
• Various ways to exercise and demonstrate your
  knowledge.

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Learning Tools

• Readings, assigned and optional
• Lecture notes and supplements
• Class discussions
• Multi-media presentations
• Practice exercises
• Assigned exercises
• Quizzes Exams
• Web Site http//www.rmi.gsu.edu/rmi/faculty/klein
  /RMI3500_Main_Menu.html

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Text and Other Materials

• Required Text
• Redja, George E., Principles of Risk Management
  and Insurance, 2007.
• Other Assigned Readings (on website)
• Optional Readings (on website)

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Grading

• Quizzes 10
• Exam I 20
• Exam II 20
• Final Exam 30
• Special Exercises 20

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Exams and Assigned Exercises

• All exams will be multiple-choice.
• Final exam will be cumulative.
• Four assigned exercises
• Application of Insurance Pricing Concepts/Methods
• Shopping for Auto Insurance
• Determining Life Insurance Retirement Savings
  Needs
• Firm Risk Management

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Pop Quizzes

• On reading assigned for class
• How do these quizzes involve risk uncertainty?
• How is old Dr. Bob using these quizzes to
  affect your incentives influence your behavior?

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Contacting Me

• Meetings during hours or by appointment
• Talk before or after class
• E-Mail rwklein_at_bellsouth.net
• Telephone
• office 404-413-7471
• home 770-522-9829

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Questions?