University of Southampton School of Management

MANG6182 PRN!P"#S $% RS& MANAG#M#N'

Alas(air Marshall )mo(ule coor(inator*
Matthe+ "eitch
Aims of the mo(ule
This module focuses on concepts and theories that are central to understanding what is
needed for efficient and effective risk management. Later modules build on this
conceptual/theoretical foundation in describing current practice and its limitations, and in
explaining best practice tools, techniques and processes. This module sets some of the
agenda for later modules, places relevant concepts and issues in a framework and provides
an investigation of the significance of these principles, concepts and issues. An
understanding of this underlying theory enables informed critical reflection of current
practices so that weaknesses and limitations can be identified.
nten(e( learning outcomes
&no+le(ge an( Un(erstan(ing
aving successfully completed the unit, you will be able to demonstrate knowledge and
understanding of!
". the scope for risk and uncertainty management in an organisational context#
$ the key concepts and theories that should inform risk and uncertainty management.
Su,-ect Specific ntellectual )!ognitive* S.ills
aving successfully completed the unit, you will be able to!
%. explain the range of factors that can influence the perception of risk, and principles
involved in achieving effective risk identification
&. explain and critically compare the ways in which risk and uncertainty may be described
and evaluated .
'ransfera,le )&ey/General* S.ills
aving successfully completed the unit, you will be able to!
'. apply and develop key skills in critical thinking, reflection and verbal communication
during the module, and subsequently through preparation of the written assignments, key
skills in information handling, critical analysis and written communication.
'eaching an( "earning Metho(s
MANG6182 Principles of RM Outline page 1
The module is taught through a mixture of methods ranging from guided background
reading, interactive lectures, and discussion of concepts and examples. The first part
comprising lectures will draw on the experiences of students and through class discussion,
encourage reflection on generic concepts and processes.
The second part will comprise a series of presentations from groups of students reporting
on their study of a selected risk management publication. (ach group)s choice of publication
will be guided and approved by the unit coordinator. *otential sources may include +ournal
articles, specific textbooks, past ,-c dissertations, professional guidelines and standards,
.overnment publications /0.1 in 234, 5ational Audit 0ffice reports etc. The aim will be to
obtain a useful spread of pertinent publications and topics.
6ollowing each group)s presentation, the class will interrogate the group and discuss
emergent issues. These presentations and discussions will form the basis for an individual
piece of coursework requiring you to discuss what you see as the key issues and problems
confronting risk managers and/or risk management practice.
Assessment
"778 course work, through a written assignment. This assignment will require you to reflect
on and evaluate the application of concepts and processes discussed in the module.
Assessment metho( 0eight
ssue
+ee.
Su,mission 1ate
.roup presentation /up to $7 minutes4
$78
-ession
" of unit
$%
rd
0ctober
%7
th
0ctober
9
th
5ovember
:ndividual report /"$77 words4 %78
-ession
" of unit
"7
th
;ecember
:ndividual written coursework /$777 words4 '78
-ession
" of unit
"$
th
<anuary
MANG6182 Principles of RM Outline page 2
Recommen(e( Rea(ing
-tephen =ard, /$77'4 Risk Management: organisation and context.
=itherby > 1o Ltd, %$?%9 Aylesbury -treet, London, (1"@ 7(T. www.witherbys.com
:-A5 " B'97C $CB & /expensive to buy, but lots of copies are available in the arley
Library D4.

,. =oods /$7""4 Risk Management in Organizations: an integrated case study approach.
@outledge.
,. Leitch /$7"74 A Pocket Guide to Risk Mathematics: key concepts every auditor should
know. =iley *ress.
..,.Areakwell /$77E4 he psychology o! risk, 1ambridge 2niversity *ress, CEB?7?'$"?
77&&'?C
;. Lupton /"CCC4 Risk, @outledge *ress.
L.T.;rennan and A.,c1onnell $77E, Risk and crisis management in the pu"lic sector,
@outledge, London. CEB?7?&"'?%EB"'?&
-mith ;. and (lliott ;. /(ds4 $779, #ey readings in crisis management $ systems and
structures !or prevention and recovery @outledge , London. 7?&"'?%"'$"?$
A. 6ischhoff /"CB"4 Accepta"le Risk, 1ambridge 2niversity *ress.
:-0 %"777 @isk ,anagement -tandard www.iso.org
A:@,:1, ALA@,, :@, /$77$4 A risk management standard . Available as a free
down? load from www.airmic.com or www.theirm.org
< Adams /$77"4 Risk, @outledge! Abingdon, 0xford. :-A5 "?B'E$B?79B?E.
This book could have done with a more informative titleD :t is about how people weigh risks
and rewards when choosing to do things, and the difficulties inherent in using cost?benefit
analysis to make decisions about regulations and investment in society. :t is a very
readable, well referenced, discursive book with many examples /some amounting to case?
studies4. A particularly attractive feature of this book is the heavily critical stance taken
towards cost?benefit analysis.
=aring and A.:. .lendon /"CCB4 Managing risk $ critical issues !or survival and success
into the %&
st
century. London, Thomson Learning. :-A5 "?B9"'$?"9E?E.
/*art : @isk contexts, particularly! 1hapters % ,anagement systems and risk# & 1ulture and
risk# *ower and risk# 9 0rganisational environment and risk# E @isk and change. *art ::
provides a number of useful case studies of very different contexts! the offshore oil and gas
industry after *iper Alpha, the collapse of Aarings Aank, safety in the railway industry,
introduction of new computer systems, and 23 health authorities.4
* L Aernstein /"CC94 Against the Gods'the remarka"le story o! risk. =iley! 1hichester.
:-A5 7?&E"?$C'9%?C.
This well?known book provides excellent background reading on how approaches to
quantifying and evaluating risk developed. A range of important concepts in risk analysis are
discussed including basic probability theory, dependence, 2tility theory, risk aversion,
portfolio analysis, and the psychology of estimating variability. The discussion is well
researched and very readable, but it is not a textbook, and it is not a book for looking up
and learning about individual topics. 5ote that a video of *eter Aernstein talking about risk
is shown at the end of the first lecture.
MANG6182 Principles of RM Outline page 3
PR$GRAMM# Autumn 2213
1A4 $N# 2n( $cto,er )Alas(air Marshall*

C.77 F C.$7 Arief ,odule :ntroduction and administration of group presentation forms.
C.$7 ? C.&' =hat do we need to think about when we contemplate Grisk)H -ome
necessary considerations, a critical perspective, and a suggestion for how
we might try to think more thoroughly about risk.
C.&' F "7.77 break
"7.77 ? "7.&' @isk differentiated from uncertainty. -ome closely related terms! ignorance,
contingency, indeterminacy, innovation, false certainty.
lunch

"&!77 F "&!%' @isk definitions, risks linked to ob+ectives, group exercise on risk controls.
"&.%' ? "&.&' @isk management includes threat and opportunity management.
"&.&' ? "'.77 break
"'.77 ? "'."' 2ncertainty ,anagement.
"'."' F "'.%7 ,anaging the 2nexpected, anticipation and resilience, learning from @0s.
"'.%7 F "'.&' -umming up! three perspectives on risk management /I collection of forms4.
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1A4 '0$ 5th $cto,er )Alas(air Marshall*
7C.77 F 7C.&' Aehavioural decision making, the importance of emotion/affect within risk
cognition, stress and information processing. @isk taking as an individual
difference.
7C.&' F "7.77 break
"7.77 F "7.&' -ensation seeking and its correlates, how these vary with threat/crisis.
room change
"".77 F "$.%7 1hartered :nsurance :nstitute (mployability talk! by Amy ollis of the 1::.
5.A. This event will be held in Auilding $, @oom "7BC.
lunch
"&!77 F "&.&' @isk 1ommunication! expert vs lay approaches# aims > effectiveness#
obstacles# risk tolerance# perceived risk# the psychometric paradigm
"&.&' ? "'.77 break
"'.77 F "'.&' @isk culture! basic concepts# cultural theory# organisational safety culture#
risk ownership and transference# risk appetite# risk homeostasis, risk
cultures in financial institutions.
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???????
1A4 '6R## 16th $cto,er )Matthe+ "eitch*
7C.77 F 7C.&' ;ecision making and Grisk identification! pulling it all together, risks and
decisions, use and types of model).
7C.&' F "7.77 break
"7.77 F "7.&' ;escribing risk/uncertainty! risk metrics, challenges of risk assessment.

"&.77 F "&.&' Towards better management under uncertainty! the value of iterative
thinking in risk management, other improvements.
"&.&' ? "'.77 break
"'!77 F "'.&' 6ormal processes! reasons for formal processes, types of process
/integrated vs separate4, evaluation of processes.
Group Presentation Sessions
C?""am, $?&pm on $%
rd
0ct, %7
th
0ct, 9
th
5ov /,atthew Leitch4
MANG6182 Principles of RM Outline page 4