RMI 210 - Principles of Risk Management (3 Credits)

This course is an introduction to decision making under uncertainty and provides an overview of how various markets allow individuals and organizations to diversify risk. Material covered includes measurement of risk, behavioral bias in decision making under uncertainty, diversification of risk, the role of capital in ensuring performance, moral hazard, adverse selection, insurance pricing and applications to public policy issues such as health care, catastrophe risk and safety regulation. Lecture Hours: 39. Prerequisite(s): RMI 101 with a grade of “C” or better. Usually offered in the spring.