Simon Fraser University
Engaging the World

Course Outlines

Spring 2026 - RISK 102 D100

The Science of Risk: Understanding and Managing Uncertainty (3)

Class Number: 4546

Delivery Method: In Person

Overview

  • Course Times + Location:

    Jan 5 – Apr 10, 2026: Tue, 10:30 a.m.–12:20 p.m.
    Burnaby

    Jan 5 – Apr 10, 2026: Fri, 10:30–11:20 a.m.
    Burnaby

Description

CALENDAR DESCRIPTION:

A practical introduction to the science of risk management, applicable in both personal and business contexts for making data-driven decisions under uncertainty. Topics include risk identification and classification, qualitative and quantitative risk assessment, risk mitigation through pooling and insurance, and emerging risks. Applications in finance, cybersecurity, healthcare.

COURSE DETAILS:

Learning Objectives:

By the end of the course, students will be able to:

Describe the risk management framework and apply it to a variety of personal and business/enterprise risks.

  1. Apply qualitative and quantitative tools for assessing risk.
  2. Describe and use quantitative risk metrics and key performance indicators.
  3. Distinguish various risk mitigation strategies and select appropriate strategies for a given scenario.
  4. Evaluate the impact of emerging risks (e.g., climate change, cyber risk) on the frequency and severity of personal and enterprise risks and on the cost and effectiveness of risk mitigation strategies.

Topics:

  1. Introduction to risk management: definition of risk, types of risk, risk management framework and lifecycle, personal vs. enterprise risk management, regulations and standards
  2. Risk assessment: tools for risk identification (SWOT, risk registers), qualitative vs. quantitative risk assessment, risk exposure, behavioural aspects of risk perception
  3. Probability and risk models: probability distributions, measures of central tendency and variation, tail risk, application of probability in risk assessment, Monte Carlo simulations for risk analysis
  4. Decision-making under uncertainty: risk aversion, decision-making models
  5. Risk pooling fundamentals: convolution, correlation, diversification
  6. Risk-handling: loss control, risk transfer, loss financing
  7. Insurance basics: types of products and features, insurance value chain, premium calculations, quantitative modeling for underwriting and claims forecasting, reserving, reinsurance models
  8. Personal risk management: quantifying personal financial risks, risk modeling for personal portfolios, insurance decisions, simulations
  9. Financial risk models and techniques: credit scoring models, price volatility and portfolio risk, derivatives for risk hedging
  10. Quantitative risk in healthcare: statistical models for patient outcomes, disease modeling, predicting healthcare system disruptions
  11. Quantitative approaches to cybersecurity risk: statistical methods for detection, risk models for cyber threats, cyber insurance
  12. Climate change and its impact on other risks

Grading

  • Tutorial activities and assignments 20%
  • Quizzes 40%
  • Final exam 40%

NOTES:

Above grading is subject to change.

Materials

REQUIRED READING:

Readings and case studies will be shared via Canvas.

RECOMMENDED READING:

Dorfman, M. and Cather, D. (2013). Introduction to Risk Management and Insurance. Tenth Edition. Pearson

REQUIRED READING NOTES:

Your personalized Course Material list, including digital and physical textbooks, are available through the SFU Bookstore website by simply entering your Computing ID at: shop.sfu.ca/course-materials/my-personalized-course-materials.

Registrar Notes:

ACADEMIC INTEGRITY: YOUR WORK, YOUR SUCCESS

At SFU, you are expected to act honestly and responsibly in all your academic work. Cheating, plagiarism, or any other form of academic dishonesty harms your own learning, undermines the efforts of your classmates who pursue their studies honestly, and goes against the core values of the university.

To learn more about the academic disciplinary process and relevant academic supports, visit: 


RELIGIOUS ACCOMMODATION

Students with a faith background who may need accommodations during the term are encouraged to assess their needs as soon as possible and review the Multifaith religious accommodations website. The page outlines ways they begin working toward an accommodation and ensure solutions can be reached in a timely fashion.