1. 1
Instructor: Jeff Roberts, CPCU, ARM, AIC, MBA
Phone: 312-915-8591 e-mail: jroberts5@luc.edu
Office: McGuire 460 Ofc Hrs: Wed 6pm–7pm
Class Room - day/time: Corboy TBD: Wed; 7pm – 9:30pm
Fall Session 2015
FIN 338: SPECIAL TOPICS (RISK MANAGEMENT AND INSURANCE)
Course Overview:
Introduction to risk identification, risk evaluation, and risk treatment methods. Consideration is given to
both business and personal risks, with an emphasis on insurance as a risk management tool. Designed for
non-majors as well as basis for more advanced risk management courses.
Course Objectives and Learning Outcomes:
1. Prepare the student with practical risk management and insurance principles/fundamentals.
2. Introduce risk management and insurance techniques applicable to potential future careers.
3. Assist the student to identify and differentiate between frequency and severity of potential losses.
4. Enable the student to understand alternatives through risk management.
5. Apply risk management analysis methods to several different business/industry segments.
Course Requirements and Grading Criteria (summary):
Percentages Points
1. Quiz I (10point multiple choice/fill in blank) 2.5% 5
2. Quiz II (10point multiple choice/fill in blank) 2.5% 5
3. Quiz III (10point multiple choice/fill in blank) 2.5% 5
4. Mini Project (Individual) 10% 20
5. Midterm 30% 60
6. Final (Not cumulative) 25% 50
7. Group Presentation & Paper (Group of 3-4)* 25% 50 *Adjusted for peer input
8. Class Participation 2.5% 5
100% 200
Your final course grade will be determined by adding together the points you earn from each
of the course requirements.
Course Grading Scale
A 100%-93% B 87%- 83% C 77%-73% F 59% and below
A- 92%-90% B- 82%-80% C- 72%-70%
B+ 89%-88% C+ 79%-78% D 69%-60%
Required Materials:
1. Text book: Rejda, Principles of Risk Management and Insurance, 11th
Edition
2. Other class materials available on Sakai (Exercises, PowerPoint slides, etc.)

2. 2
Course Requirements (details):
1., 2. and 3. Quizzes will be administered at the beginning of the assigned class. Students will be
provided the first 15 minutes of class to complete. Quiz format will be multiple choice/fill in blank, and
consist only of the class material discussed after the last quiz; non cumulative. Please be sure to be on time for
class, no make-ups, and absences must be communicated in advance.
4. The Mini Project. Based on a company of your choice, you will specifically identify, evaluate, and treat
the potential of loss exposures, based on the exposure identification techniques and risk management methods
discussed in class. Your responses are to be COMPLETED ON YOUR OWN and are to be typed, double-
spaced, and limited to 2-3 pages, maximum, in total. Important note: any paper that does not meet basic
standards of effective business writing (poor grammar, misspelled words, etc.) will be returned to the student
for immediate rewriting and resubmission, and a penalty will be assessed against the mini-project grade.
5. and 6. Both Examinations (Midterm and Final) will be in-class, closed-book exams. They will
include objective and brief essay questions. Sample exam questions are provided on Sakai.
7. Group Presentation and Paper: Risk Management of a Corporation
This project is designed to allow your group to identify, evaluate, and treat the potential of loss exposures,
based on the exposure identification, measurement and analysis techniques and risk management methods
discussed in class.
Presenting the projects in class should illustrate the variety of risk management techniques being used by the
corporation. The presentations should enable the class to learn risk management tailored to your selected
corporation. In addition, the project will let you apply your risk management analysis that we will be studying
in class.
Select a specific company that is publicly traded and manufactures a key identifiable product; eg. lamps,
lawnmowers, toasters, ice cream, power tools, pizza, etc. This project is to be a potential loss analysis
(not merely a description) of their operations. Please think of this project as similar to a consultant's work for a
client, or as your group is the risk management department reporting to the board of directors. Thus, include
conclusions and recommendations in your report. The company selected can not be similar to any group
member’s mini-project; ie not the same or similar company or industry. Companies not eligible for group
project: Apple, Ben & Jerry’s, Lamplighter, Nike/Adidas, Starbucks, Wal-Mart, or Wholefoods.
Your research must be a field study, collecting data beyond your own interpretation of events: data from
observations, interviews and/or surveys about a particular industry/company. You may develop your own data
collection questions, or adapt questions used by other means.
Your project will comprise two parts: (1) a presentation to the class (30% of the project grade) and
(2) a written executive summary paper (70%). Your group will receive one overall grade, based on separate
evaluations for the presentation and the paper. In addition, you will be required to evaluate each of your
fellow group members' relative contribution to your project, and the final individual grades for the
group project will be adjusted, if necessary. All members of a group will receive the same project grade,
EXCEPT in the case of “freeloader” problems. Project groups should be comprised of 3 or 4 members. If you
are having problems with group formation or a “freeloader” situation, please come to me for help ASAP and
well before deadline dates.
Your group will give a 15 minute presentation of your project to the class on Nov 18th
or Dec 2nd
. The
scheduling of presentations will depend on how many groups we have. Your presentation should include a
summary of the ACTUAL DATA you collected (bar charts, tables, graphs, etc.) as well as your analysis,
conclusions, and action plan recommendations. Each group member must participate in this presentation.
*Company selection and presentation dates are assigned in order the request is received.

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Grading criteria for the class presentation include:
 Organization and creativity
 Presentation of data collected
 Complete analysis of potential for loss, including hazard identification, effectiveness
of applying risk management techniques, as well as your groups overall understanding
of controlling risk and financing risk.
 Use of class concepts to support analysis
 Own conclusions and action plan recommendations
 Contribution by all group members and use of time
* * On your presentation date, please also provide me with a copy of any handouts or
PowerPoint slides you will be using. * *
Your group's written executive summary paper should be a typed, double-spaced, professionally-
prepared paper. The written summary is due at the beginning of class on the date your group's presentation is
scheduled. NO LATE PAPERS WILL BE ACCEPTED. This executive summary paper should be 3-5 pages
of text (5 pages maximum), plus 2-5 pages of data exhibits (total paper maximum of 10 pages). Please also
include your references. Important note: any paper that does not meet basic standards of effective business
writing (poor grammar, misspelled words, etc.) will be returned to the student for immediate rewriting and
resubmission, and a penalty will be assessed against the project grade.
Grading criteria for the written project include:
 Clarity of writing and review of data
 Summary analysis(not simply restating facts) of potential for loss
 Conclusions and recommendations.
Please address the questions listed below when preparing your project. Make sure that you
demonstrate your ability to use the assigned readings plus our class discussions in your analysis.
1. What are the most significant potentials for loss? (Identify the exposures: frequency / severity)
2. Any truly unique exposures and/or hazards from their business and/or industry?
3. What risk management fundamentals does the corporation currently exhibit?
4. How is the corporation currently managing their risk? (Avoidance, prevention, reduction, other)
5. What are the corporation’s alternatives to improving their risk and potential from loss?
6. Who/what are their resources for improved information and how should it be applied?
7. How would you improve their risk management program?
Please identify your group members by September 9th
.
Groups may be comprised of 3 to 4 members. Also, please advise me as to your preferred presentation
date/time; I’ll try to accommodate all requests, but if this isn't possible, we will use a lottery to
determine group project presentation date/times.
A one-page outline (one from each group) is due at October 7th
.
Identify and briefly describe what company your group is planning to study. Identify three or four key areas
of potential loss you plan to address? Your outline should include a brief overview of your plans for data
collection: i.e., observations? company records? interviews? surveys? This non-graded assignment allows me
to provide you with early feedback on your chosen project topic. Please take advantage of office hours prior to
this deadline to assist your group in discussing which may be the best company to choose for the group
presentation.

4. 4
Quinlan School of Business Policies:
Attendance
Class attendance and participation are fundamental parts of an excellent education, and thus,
punctual attendance for all classes, for the full class meeting period of the class, is expected of
Quinlan students. Faculty may set participation policies unique to their classes, and use class
participation as a component of the final grade.
Because FIN 338 uses in-class group exercises as well as individual participation, a student cannot
earn an A for the course without contributing to the class as both an engaged individual student and an
involved team member. If you must miss a class or leave early, please notify me in advance. You
are responsible for any class assignments or requirements missed.
Make-up examinations are discouraged. The professor reserves the right to alter any make-up
exams to be different and more challenging. Excused absences must be documented with
supporting documentation. Exceptions may be granted only by the faculty member or department
chair, and only for unavoidable circumstances (illness verified by a signed physician’s note,
participation in intercollegiate athletic events, subpoenas, jury duty, military service, or bereavement).
Make-up dates proctored by faculty will be on a limited schedule. If you cannot make the make-up
exam date/time, then the student will receive a zero score for the exam. Any emergency should be
followed by an e-mail notification to the professor.
Academic Integrity
“All members of the Quinlan School shall refrain from academic dishonesty and misconduct in all
forms, including plagiarism, cheating, misrepresentation, fabrication, and falsehood…Plagiarism or
cheating on the part of the student in individual or group academic work or in examination behavior
will result minimally in the instructor assigning the grade of “F” for the assignment or examination.
In addition, all instances of academic dishonesty must be reported to the chairperson of the
department involved.”
For further information about our expectations for academic integrity and sanctions for violations,
consult the complete Quinlan School of Business Honor Code and Statement of Academic Integrity
on the Quinlan website: http://www.luc.edu/media/lucedu/quinlanschoolofbusiness/pdfs/Honor-
Code-Quinlan-July2012.pdf
The Student Handbook
The Student Handbook contains all the policies and procedures of the student conduct process. The
Student Handbook applies to all Loyola University students, as defined in the handbook, hard copies
of the Student Handbook are made available at the beginning of each academic year.
Special Request
This course depends on a high level of student engagement and participation. Thus, to minimize
distractions to you, your fellow students, and me, please keep your laptops closed during class.
Standard calculators are periodically utilized in this class. I-phone/Blackberry devices will not be
allowed for calculator work; particularly during quiz/exams.

5. 5
FIN 338 COURSE OUTLINE
Class & Date Topic & Assignment
Class 1
Aug 26th
(Wed) Introduction: What to expect from this course
Determination of basic fundamentals of risk management
Class 2
Sept 2nd
(Wed) Fundamentals of risk, (Chapter #1)
Exposure identification (examples)
Class 3
Sept 9th
(Wed) Insurance risk and Business risk
Hedging versus speculation (Chapter #2)
Introduction to Risk Management
Meanings and objectives (Chapter #3)
Measure and Analysis of exposures identified (examples)
Group project team formation deadline and presentation date selection
Class 4
Sept 16th
(Wed) Continuation of Risk Management
Meanings and objectives (Chapter #3)
Risk control and Risk finance (examples)
Mini Quiz I (15 minutes, 10multiple choice, Subject: Class 1 - 4)
Class 5
Sept 23rd
(Wed) Loss forecasting (frequency/severity) and Financial analysis (Chapter #4)
Property exposures and exposure to loss (Sakai handouts)
Net present value concepts
Class 6
Sept 30th
(Wed) Property valuation and exposure to loss (Sakai handouts)
Mini Quiz II (15 minutes, 10 multiple choice, Subject: Class 5 & 6)
Class 7
Oct 7th
(Wed) Casualty exposures and exposure to loss (Sakai handouts)
Group project outlines due/discussed
Class 8
Oct 14th
(Wed) Midterm (Subject Classes 1-8)

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Class 9
Oct 21st
(Wed) Management liability exposures and exposure to loss (Sakai handouts)
Role of the regulators
Mini Projects due and discussed
Class 10
Oct 28th
(Wed) Financial analysis (Class discussion/handouts)
Management liability exposures and exposure to loss (Sakai handouts)
Insurance company operations (Chapter #5)
Insurance company operations (Chapter #6 & #7)
Class 11__
Nov 4th
(Wed) Insurance contract fundamentals and the insurance contract (Chapter #9)
Insurance contract fundamentals and the insurance contract (Chapter #10)
Class 12
Nov 11th
(Wed) Government Regulation and Legal Principles (Chapter #8)
Management liability exposures and exposure to loss (Sakai handouts)
Mini Quiz III (15 minutes, 10multiple choice, Subject: Class 10 -12)
Class 13
Nov 18th
(Wed) Group Project presentations, papers due (Round one)
No Class
Nov 25th
(Wed) Official Loyola Thanksgiving break (No class)
Class 14
Dec 2nd
(Wed) Group Project presentations, papers due (Round two)
Class 15
Dec 9th (Wed) Final (Subject Classes10 - 13)
Please note: We may occasionally deviate from the course outline above. The instructor reserves
the right to make changes as needed to the course syllabus.