Risk Management Case Project

• Author: Kathleen A. McCullough,Randy E. Dumm,Robert E. Hoyt
• DOI: http://doi.org/10.1111/j.1540-6296.2010.01179.x
• Published date: 01 March 2010
• Date: 01 March 2010

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Risk Management and Insurance Review, 2010, Vol.13, No. 1, 147-159

DOI: 10.1111/j.1540-6296.2010.01179.x

RISK MANAGEMENT CASE PROJECT

Robert E. Hoyt

Randy E. Dumm

Kathleen A. McCullough

ABSTRACT

Case projects are valuable tools for teaching risk management and insurance

(RMI). This article describes a flexible case study approach that can be used as a

comprehensive capstone project for the RMI major or in modules for graduate

and undergraduate RMI courses. The project incorporates both fundamental

RMI concepts and emerging trends in the field. The use of the case project

provides benefits to both students and the RMI program, especially given the

increasing pressure for assessment in college curricula.

INTRODUCTION

There are several challenges in teaching risk management and insurance. First, the field

of risk management is rapidly changing and evolving. Advances in technology have

created new and more powerful ways to model risk, and new sources of uncertainty

continue to emerge. Some firms are now actively managing risk across the firm or

“enterprise.” Some individuals suggest that enterprise risk management reflects the

future direction of risk management. Second, the commercial risk management process

encompasses a broad spectrum of interrelatedissues that are often difficult to understand

in abstract terms. Finally, the appropriate risk management and insurance strategy is

often dependent on the firm, industry,and current state of the economy. For this reason,

a framework in which students can apply the concepts to a specific situation is critical.

A broad-based and detailed risk management case project can be an effective teaching

tool that helps to address the challenges noted earlier. For the case study discussed

in this article, students serve as risk management consultants for a fictional firm and

they are expected to provide their “clients” with a comprehensive risk management

audit. As such, the process includes all of the core risk management functions including

Robert E. Hoyt is Professorand Department Head, Insurance, Legal Studies, and Real Estate, Terry

College of Business, 206 Brooks Hall, University of Georgia, phone: 706-542-4290; fax: 706-542-

4295; e-mail: rhoyt@terry.uga.edu.Randy E. Dumm is an Associate Professor, Department of Risk

Management/Insurance, Real Estate, and Business Law,Florida State University, phone: 850-644-

7880; fax: 850-644-4077; e-mail: rdumm@cob.fsu.edu. Kathleen A. McCullough is an Associate

Professor, Department of Risk Management/Insurance, Real Estate, and Business Law, Florida

State University,phone: 850-644-8358; fax: 850-644-4077; e-mail: kmccullough@cob.fsu.edu. This

article was subject to double-blind peer review.

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