Risk is persistent everywhere for enterprises running a business under a rapidly changing global business environment, particularly in the recent surrounding of the Covid-19 pandemic. Managing any substantial risks confronting an enterprise is becoming increasingly important in its day-to-day tasks. Enterprise risk management (ERM) is a practice that examines and implements risk management strategically from the perspective of the entire enterprise. It aims to prevent any potential losses and dangers that may impact the operation of an enterprise. Proactive risk management strengthens an enterprise’s ability to contend with existing and emerging risks and adapt quickly to unexpected risk events. Furthermore, integrating enterprise risk management with strategy helps to enhance business performance. In recent years, enterprises have been confronting an evolving landscape of environmental, social and governance (ESG)-related risks that can impact their profitability. It is thus important for enterprises to understand the full spectrum of ESG-related risks and to incorporate ESG-related risks into enterprise risk management framework. Also, regulatory requirement place government standards for ESG-related actions, reporting and disclosure. The regulations will ensure accessible information stakeholders need in order to assess risks arising from ESG-related issues. Also, every enterprise faces financial risks which would cause potential losses under business uncertainty. Financial risk management measures and manages financial risks to which an enterprise might be exposed, either now or in the future. The economic crisis of 2008 affirms the importance of risk management, especially in the financial services industry. This course will provide students with the knowledge and skills commonly used in practice to implement ERM framework utilizing risk management qualitative and quantitative methods. Students will learn to identify, assess, control, and respond to risks for an enterprise and also integrate risks with business strategy to improve performance. In addition, ESG-related risks will be identified to be incorporated into ERM framework. At last, this course will introduce the practical implementation and application of financial risk management covering market, liquidity, credit, and operational risk measurement and management from the viewpoint of financial institutions. Upon completing this course, students will be capable of using the techniques learned to analyze, evaluate, and manage risks, inclusive of ESG-related risks, from an enterprise point of view. Also, students will acquire knowledge of the best practices in financial risk management.

By the end of this course, students are expected to 1. Recognize types of risk and concepts relating to risk management. 2. Understand the process for risk identification, risk assessment, risk response, and risk control. 3. Integrate risks with business strategy for business performance. 4. Identify ESG-related risks 5. Incorporate ESG-related risks into ERM framework 6. Use appropriate qualitative and quantitative methods to quantify risk exposures. 7. Deliver a risk management framework from an enterprise perspective. 8. Learn about the best practices in financial risk management and measurement for different types of risks, inclusive of market risk, liquidity risk, credit risk, and operational risk.

John R. S. Fraser, Rob Quail, Betty Simkins, 2021, Enterprise Risk Management: Today's Leading Research and Best Practices for Tomorrow's Executives, 2nd Edition, Wiley Karlheinz Spitz, John Trudinger, Matthew Orr, 2022 Environmental Social Governance: Managing Risk and Expectations, Taylor＆Francis Richard Apostolik, Christopher Donohue, 2015, Foundations of Financial Risk: An Overview of Financial Risk and Risk-based Financial Regulation, 2nd Edition, GARP (Global Association of Risk Professionals)