GB4460 Business Risk Management

Addresses the risk management issues that are inherent in business decisions. Students will learn to manage Schedule Risk, Supply Risk, Capacity (Readiness) Risk and Budget Risk; how to use metrics such as Value-At-Risk and Conditional Value-At-Risk to quantify exposure; how to combine risk sources; account for correlation, and use Bayesian Updating to modify risk estimates.  Monte Carlo Simulation will be used extensively, and will be contrasted with other approaches (e.g., Discounted Cash Flow). Descriptive approaches to the study of risk judgments such as prospect theory will be examined, so that students can better predict risk-related behavior of others.

Prerequisite

GB3040 and GB3042 or permission of instructor

Lecture Hours

4

Lab Hours

0

Quarter Offered

  • As Required