The Management of Risk and Uncertainty

Learning Outcomes

Knowledge and Understanding

Having successfully completed this module, you will be able to demonstrate knowledge and understanding of:

• uncertainty management;
• how risk and uncertainty management relate to broader organisational contexts of internal control, corporate governance, decision making and culture.
• risk management;

Subject Specific Intellectual and Research Skills

Having successfully completed this module you will be able to:

• discuss possible improvements to current practice.
• manage risk and uncertainty using various techniques;
• critically analyse current practice;
• analyse risk and uncertainty from a range of theoretical perspectives;
• apply generic principles to a range of application contexts;

Transferable and Generic Skills

Having successfully completed this module you will be able to:

• Propose practical solutions to complex real world problems.
• Analyse complex real world problems;
• Communicate ideas effectively in consultancy report format;
• Apply theory and evidence to create impact within organisations;

The lectures will cover:

Historical context for risk management (e.g. longstanding insurance principles and practices, probabilistic and frequentist reasoning, historical use of risk registers).

Theories and practices relating risk management to uncertainty management (e.g. use of decision theory, techniques for estimating and resolving uncertainties, inclusion of opportunity management within risk management).

Internal integration challenges facing risk management practices (e.g. traditional ‘risk-listing’, enterprise risk management, risk-based internal control, resilience, business continuity, crisis management).

External integration challenges linking risk management to various other organisational practices (e.g. project management, performance management, knowledge management, internal audit, marketing, competitive intelligence, corporate governance, management-by-objectives).

Risk management theory and practice informed by closely related risk psychology, risk culture and risk communication research (e.g. implications of psychological theories of risk cognition, risk framing, risk heuristics and risk-taking for various risk-related behaviours in organisations).

Common flaws in risk management practice (e.g. biases in risk perception and forecasting, problems with risk registers).

Teaching and learning methods

The taught lectures will raise risk and uncertainty management issues which students, working in small groups in the weekly classes, will draw upon to support one another as they develop their individual consultancy reports. The groups will be formed on the basis of commonalities pertaining either to particular business sectors or to particular risk problems which challenge multiple business sectors, . In the classes, the lecturer will first of all help the students form groups by establishing common topic areas. Each group will thereafter work on its own common topic area. Using techniques such as sharing mutually relevant research tasks, and peer review of draft work, they will assist one another in the development of their individual consultancy reports. The lecturer will guide the students by clarifying both the nature and limitations of the support they can give one another. Emphasis will be placed on ensuring the draft reports are peer reviewed to ensure they contain practical consultancy recommendations, and successfully apply knowledge from the lectures.

Each individual consultancy report will pertain to some (usually organisational) exposure to risk and uncertainty, where current practice can be explored and improvements can be proposed. In practical terms, this might involve:

• scrutinising how some specified organisation deals with its risk environment;
• scrutinising some expert guidance or regulation;
• scrutinising lay risk perceptions/behaviours;
• scrutinising how risk and uncertainty are handled within some academic or scientific endeavour.

Students will be expected to individualise their consultancy reports by ensuring that no two reports deal with the same subject matter.

Resources & Reading list

General Resources

Centre for Risk Research (2016). Directing risk management in organizations. Guidance from the Centre for Risk Research. Downloadable from: http://www.southampton.ac.uk/risk/publications/guidance.page

A, Marshall (2017) Risk Intelligence: a Centre for Risk Research discussion document. Downloadable from http://www.southampton.ac.uk/risk/publications/discussion-document.page?

A. Marshall (2016) Why Risk Cultures Need Prudence. A discussion paper from the Centre for Risk Research. Downloadable from http://www.southampton.ac.uk/risk/publications/discussion-document.page?

Textbooks

S. Ward (2005). Risk Management: organisation and context. London: Witherby.

Summative

This is how we’ll formally assess what you have learned in this module.

Referral

This is how we’ll assess you if you don’t meet the criteria to pass this module.

Repeat

An internal repeat is where you take all of your modules again, including any you passed. An external repeat is where you only re-take the modules you failed.

Repeat Information

Repeat type: Internal & External