Time Schedule:
Margaret A Searle
INFX 598
Seattle Campus
Introduces innovation and specialized topics relating to the study of information in any context.
Class description
The Basel Committee on Banking Supervision defines operational risk as The risk of loss resulting from inadequate or failed internal processes, people, and systems or from external events. Information or the lack of it is a critical element in operational risk management. This course examines operational risk and business process management as entwined elements of a risk model. It looks at the role of corporate governance, the role of technology, and business process decisions such as off-shoring and out-sourcing. Though operational risk is present in all companies, many of our examples will come from the banking and finance sector in light of the economic meltdown that began in 2007. We'll also look at the oil industry and failed risk practices in cases like the BP Oil Spill; and at information technology platforms where much risk is still present, like cloud computing.
Student learning goals
Identify and classify the key practice areas of operational risk.
Apply concepts and processes included in a risk framework.
Analyze the principles of information management as they apply to operational risk management.
General method of instruction
A combination of lecture and discussion, as well as presentations by students in the class. Class meets Mondays and Wednesdays in Session 2 from 4:10pm-7:30pm.
Readings:
Rene M. Stultz, Six Ways Companies Mismanage Risk, Harvard Business Review, March 2009.
Nassim Taleb, Daniel Goldstein, Mark Saptznagel, Six Mistakes Executives Make in Risk Management, Harvard Business Review, October 2009. 2010 Congressional Financial Crisis Inquiry Report Dennis I. Dickstein and Robert H. Flast, No Excuses: A Business Approach to Managing Operational Risk. Hoboken, NJ: John Wiley and Sons, 2009.
Recommended preparation
IMT 580 or permission of the instructor.
Class assignments and grading
Assignments will be primarily reading and writing, in preparation for discussion in class. The course will be highly interactive.
Grades will be assigned on the basis of class participation, several quizzes, and at least one paper of 5-10 pages in length. Students will work in small groups for final course presentations to the rest of the class.
