University Bulletin
Undergraduate Degree Programs
B A 427
Risk and Decisions (3) Conceptualizing decisions involving risk, analyzing choices, estimating the risk, and communicating the analysis.
B A 427 Risk and Decisions (3)
Most tough business decisions involve risk. Rish is where the money is. It's where ruin is too. Smart risk-taking requires special analytical problem solving skills and careful consideration of the relevant data. In this course, you will learn how to conceptualize decisions involving risk, how to analyze your choices, how to estimate the risk, and how to communicate and defend your analysis to others. The skills and tools you will learn come from economics and statistics as well as from game theory and psychology.
The modern understanding of risk has a decidedly quantitative dimension to it, and an electronic spreadsheet will be at the center of much of what we do. The course introduces you to spreadsheet modeling using decision analysis add-ins to Excel.
The course format is eclectic and participation oriented. We will do a number of case studies to build problem structuring as well as problem solving skills. Case study also provides practice with communicating your analysis. The class includes a number of interactive exercises for hands-on practice in a diagnostic environment.
The course is an undergraduate version of a core course in the Smeal MBA program.
The tools and skills taught in the course have applications across the business school curriculum. Here are just some featured in the course:
1) Evaluating risk taking opportunities
2) Modeling an inventory process
3) Evaluating risk sharing agreements
4) Communicating risk to managers and recommending action
5) Preparing a bid for auction
6) How to prepare for a negotiation, how to make decisions during the negotiation
7) Measuring job performance
8) Forecasting product demand
Note : Class size, frequency of offering, and evaluation methods will vary by location and instructor. For these details check the specific course syllabus.