Understanding of basic methods used in risk analysis, risk assessment and risk management. Identification of the problems where risk management can be applied. Ability to prepare suitable risk management programmes for energy companies (decision making, price estimation)
- Develop understanding of risk categories in different business sectors.
- Identify and describe company risks caused by external and internal drivers.
- Calculate risk exposure based on probability and impact.
- Define risk matrix for given investment project.
- Calculate expected monetary value of the originally identified risks.
- Develop risk register and analyse acceptability of the contingency fund.
- Create risk managemnet plan.
- Evaluate risk informed decision on investment project acceptability.
Forms of Teaching
Teaching the course is organized in two teaching cycles. The first cycle contains seven weeks, mid-term exam, and the second cycle contains six weeks of classes and a final exam. Classes are conducted through a total of 15 weeks with weekly load of 2 hours. Each lecture includes wrriten material and slides.Experimental Exercises
Continuous work with Risk register for an investment projectOther
Several short case studies during semester for group work followed by students' presentation and discussion with lecturers.E-learning
Homeworks through Moodle e-learning tool.Other
Relevant vistiting lecturers from business and public sector on the topic of risk management.
|Type||Threshold||Percent of Grade||Threshold||Percent of Grade|
|Homeworks||0 %||15 %||0 %||15 %|
|Class participation||0 %||6 %||0 %||6 %|
|Attendance||0 %||4 %||0 %||4 %|
|Mid Term Exam: Written||0 %||30 %||0 %|
|Final Exam: Written||0 %||45 %|
|Exam: Written||0 %||75 %|
Week by Week Schedule
- Risk identification. Risk classification – frequency of occurrence, consequence analysis.
- Risk analysis and methods for risk analysis. Probabilistic models and risk quantification as an input to risk management
- Risk assessment and risk management. Risk valuation, acceptability, risk measures, risk reduction, option generation and evaluation, cost/benefit approach.
- Static and adaptive methods of risk control
- Risk modeling – uncertainty, event probability, simulation, "what-if", "decision tree". Case study.
- Decision making types. Role of primary information in decision making process. Decision making under influence of uncertainty. Analysis and optimization of the decision. Role of quality control and quality assurance.
- Societal values and acceptable risk. Qualitative and quantitative safety goals. Cost-benefit and Risk-Benefit. Insurance and risk management. Sources of risk in financing: exchange rate, interest rate and energy price volatility.
- Evaluating risk: A review of some basic principles in finance. Diversifiable, systematic risk. Hedging irrelevance proposition.
- Financial values used in decision making – NPV, IRR, Cash Flow. Project planning and financing in case of uncertainty.
- Risk management without and with presence of risk perception. The influence of risk perception on internal and external decisions related to risk management.
- Integral risk management: scenarios and consequences. Addition of multiple goals to risk analysis and management.
- Risk assessment and risk management for new technologies. Risk management applied to energy resources, global climate changes and other global natural resources.
- Enterprise risk management to limit influences of internal and external threats to organizational structures and financial losses. Lecutre given by vistiting lecturers on the topic of risk management.