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University Bulletin

Undergraduate Degree Programs

Risk Management

University Park, Smeal College of Business (R M)

PROFESSOR Austin J. Jaffe, Chair, Department of Risk Management

The Risk Management major prepares students for careers in a wide range of private industries and public service agencies involving such areas as operations, property development, financial strategy, and government. The major is integrative in nature by crossing traditional business boundaries while offering specific areas of study in actuarial science, enterprise risk management, and real estate. High profile risks are faced by leaders and managers up and down the corporate ladder and require specialized skills, knowledge and preparation. The Risk Management major prepares students for this along with a chance to study risk from three different perspectives by offering specialty courses along with a common pool of risk management courses. This structure assures that the students in the risk management major are equipped with the common tools of risk analysis while at the same time permitting the students to tailor the specifics of their training through the selection of a particular option.

ACTUARIAL SCIENCE OPTION: The courses in the Actuarial Science option stress the application of mathematical and statistical concepts to the measurement of life and other contingencies, while at the same time giving the student a broad understanding of the business environment. Students in the Actuarial Science option are encouraged to begin the series of professional examinations leading to Associateship and Fellowship in either the Society of Actuaries (A.S.A./F.S.A.) or the Casualty Actuarial Society (A.C.A.S./F.C.A.S.).

Entrance requirements to the Actuarial Science Option -- To be eligible for entrance into the Actuarial Science option, a degree candidate must be enrolled in the Smeal College of Business or the Division of Undergraduate Studies and satisfy the following requirements for entrance:

  1. The degree candidate must be taking, or have taken, a program appropriate for entry to the major as shown in the bulletin, including approximately 60 credits of course work.
  2. Complete the following entrance to major requirements: ACCTG 211(4)[1]; ECON 102 GS(3); ENGL 015 GWS(3) or ENGL 030 GWS(3); FIN 301(3)[1]; MATH 140 GQ(4)[1]; MATH 141(4)[1], MGMT 301(3)[1]; and MKTG 301(3)[1]; SCM 200 GQ(4)[1] or STAT 200 GQ(4)[1]. These courses must be completed by the end of the semester during which the entrance to major process is carried out.
  3. A minimum cumulative grade point average of 3.20 prior to and through to the end of the semester during which the entrance to major process is carried out.

ENTERPRISE RISK MANAGEMENT OPTION: The Enterprise Risk Management Option prepares students to identify, quantify and qualify the regulatory, legal, financial and contractual aspects of enterprise risk; the management of such risks; and the application of risk financing techniques to control risk exposures in organizations. Emphasis is also placed on the understanding of the principles and risks underlying complex business contracts.

Entrance requirements to the Enterprise Risk Management Option --To be eligible for entrance into the Risk Management major and the Enterprise Risk Management Option, a degree candidate must be enrolled in the Smeal College of Business or the Division of Undergraduate Studies and satisfy the following requirements for entrance:

  1. The degree candidate must be taking, or have taken, a program appropriate for entry to the major as shown in the bulletin, including approximately 60 credits of course work.
  2. Complete the following entrance to major requirements: ACCTG 211(4)[1]; ECON 102 GS(3); ENGL 015 GWS(3) or ENGL 030 GWS(3); FIN 301(3)[1]; MATH 110 GQ(4)[1] or MATH 140 GQ(4)[1]; MGMT 301(3)[1]; and MKTG 301(3)[1]; SCM 200 GQ(4)[1] or STAT 200 GQ(4)[1]. These courses must be completed by the end of the semester during which the entrance to major process is carried out.
  3. In addition to the above requirements, the Executive Vice President and Provost of the University may approve administrative enrollment controls that limit the number of students who are admitted to majors in the Smeal College of Business. In each case, however, academic requirements are established for admission. For information on enrollment controls, consult the Smeal College of Business Web site (http://www.smeal.psu.edu).

REAL ESTATE OPTION: This option is designed to prepare the student for a wide range of professional opportunities in corporate real estate management, real estate brokerage, appraisal, property management, mortgage lending and banking, development, and governmental service.

Entrance requirements to the Real Estate Option --To be eligible for entrance into the Risk Management major and the General or Real Estate Options, a degree candidate must be enrolled in the Smeal College of Business or the Division of Undergraduate Studies and satisfy the following requirements for entrance:

  1. The degree candidate must be taking, or have taken, a program appropriate for entry to the major as shown in the bulletin, including approximately 60 credits of course work.
  2. Complete the following entrance to major requirements: ACCTG 211(4)[1]; ECON 102 GS(3); ENGL 015 GWS(3) or ENGL 030 GWS(3); FIN 301(3)[1]; MATH 110 GQ(4)[1] or MATH 140 GQ(4)[1]; MGMT 301(3)[1]; and MKTG 301(3)[1]; SCM 200 GQ(4)[1] or STAT 200 GQ(4)[1]. These courses must be completed by the end of the semester during which the entrance to major process is carried out.
  3. In addition to the above requirements, the Executive Vice President and Provost of the University may approve administrative enrollment controls that limit the number of students who are admitted to majors in the Smeal College of Business. In each case, however, academic requirements are established for admission. For information on enrollment controls, consult the Smeal College of Business Web site (http://www.smeal.psu.edu).

For the B.S. degree in Risk Management, a minimum of 120 credits is required (at least 15 credits must be taken at the 400 level).

Scheduling Recommendation by Semester Standing given like (Sem: 1-2)

GENERAL EDUCATION: 45 credits
(12 of these 45 credits are included in the REQUIREMENTS FOR THE MAJOR)
(See description of General Education in front of Bulletin.)

FIRST-YEAR SEMINAR:
(Included in ELECTIVES or GENERAL EDUCATION course selection,)

UNITED STATES CULTURES AND INTERNATIONAL CULTURES:
(Included in ELECTIVES or GENERAL EDUCATION course selection)

WRITING ACROSS THE CURRICULUM:
(Included in REQUIREMENTS FOR THE MAJOR)

ELECTIVES: 11-14 credits

REQUIREMENTS FOR THE MAJOR: 73-76 credits
(This includes 12 credits of General Education courses: 3 credits of GWS courses; 6 credits of GQ courses; and 3 credits of GS.)

COMMON REQUIREMENTS FOR THE MAJOR (ALL OPTIONS): 48 credits

PRESCRIBED COURSES (37 credits)
ACCTG 211(4)[1], ECON 102 GS(3), FIN 301(3)[1], MGMT 301(3)[1], MKTG 301(3)[1] (Sem: 1-4)
B A 342(3), B A 411(3), B LAW 341(3), ECON 104 GS(3), ENGL 202D GWS(3), MIS 204(3), R M 301(3)[1] (Sem: 5-8)

ADDITIONAL COURSES (7 credits)
SCM 200 GQ(4)[1] or STAT 200 GQ(4)[1] (Sem: 1-2)
R M 320W(3)[1] or R M 330W(3)[1] (Sem: 5-6)

SUPPORTING COURSES AND RELATED AREAS (4 credits)
Select 4 credits: Attainment of 12th credit level proficiency in a single foreign language (4 credits). Proficiency must be demonstrated by either examination or course work. (Sem: 1-4)

REQUIREMENTS FOR THE OPTION: 25-28 credits

ACTUARIAL SCIENCE OPTION: (28 credits)

PRESCRIBED COURSES (25 credits)
MATH 140 GQ(4)[1], MATH 141(4)[1] (Sem: 1-2)
MATH 231(2)[1], STAT 414(3)[1] (Sem: 3-5)
R M 410(3)[1], R M 411(3)[1] (Sem: 5-6)
R M 412(3)[1], R M 430(3)[1] (Sem: 7-8)

ADDITIONAL COURSES (3 credits)
R M 401(3)[1] or R M 420(3)[1] (Sem: 7-8)

ENTERPRISE RISK MANAGEMENT OPTION: (25 credits)

PRESCRIBED COURSES (15 credits)
B LAW 441(3)[1], FIN 406(3)[1], I B 403(3)[1], SCM 301(3)[1],(Sem: 5-8)
R M 405(3)[1] (Sem: 6-8)

ADDITIONAL COURSES (4 credits)
MATH 110 GQ(4)[1] or MATH 140 GQ(4)[1] (Sem: 1-2)

SUPPORTING COURSES AND RELATED AREAS (6 credits)
Select six credits of supporting coursework from an approved department list. (Sem: 5-8)

REAL ESTATE OPTION: (25 credits)

PRESCRIBED COURSES (12 credits)
R M 450(3)[1], R M/FIN 460(3)[1], R M/FIN 470(3)[1], SCM 301(3)[1],(Sem: 6-8)

ADDITIONAL COURSES (7 credits)
MATH 110 GQ(4) [1] or MATH 140 GQ(4) [1] (Sem: 1-2)
Select 3 credits [1] from FIN 406(3), R M 420(3), R M/B LAW 424(3), R M/B LAW 425(3), R M 480(3) (Sem: 5-8)

SUPPORTING COURSES AND RELATED AREAS (6 credits)
Select six credits of supporting coursework from an approved department list. (Sem: 5-8)

[1] A student enrolled in this major must receive a grade of C or better, as specified in Senate Policy 82-44.

Last Revised by the Department: Spring Semester 2011

Blue Sheet Item #: 39-05-015

Review Date: 02/22/2011