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MGMT 3204 Risk Management: Summer 2022
Roadmap for Module 11 and for Module 12
I am essentially giving you two Roadmaps this week so you can best plan your final two weeks of the course.
In Week 11, we cover Corporate Governance. Corporate Governance means a lot of different things to a lot of
different people. In the United States, the view that some people take for corporate governance came into place
through legislation; the Sarbanes Oxley Act, which is more commonly known as SOX. In Canada, as is our pattern,
we have a much more simplistic, yet I believe much more effective voluntary guideline called the Dey Report. I
have assigned readings for each of these two, and I will admit that it was a toss up whether I would have you read
about these two pieces on corporate governance before or after my lecture. I decided before, and changed my
lecture accordingly. I also have to admit, that I have taken a very lazy way out for the reading on SOX – I am
sending you to Wikipedia; how incredibly lame of me! However, there is a flood of stuff out there on SOX, but
most of it is written by consultants and designed to make SOX as confusing as possible so companies will give up
and simply hire a consultant.
I know of no one in the risk community (except consultants who get paid to interpret the mess and lawyers who
build loop-holes around it) who think that SOX is effective. However, without SOX, it is quite likely that this course
would not exist. The introduction of SOX, which was brought on through a rash of corporate failures brought on by
fraud, corruption and accounting scandals in the 90’s and the early 00’s, basically formalized the need for
Enterprise Risk Management, and made it a subject distinct from Financial Risk Management.
My version of corporate governance is a bit broader than that of the regulators. My view of corporate governance
is basically how risk management gets implemented, organized and controlled in an organization. I outline my
thoughts in the lecture.
Finally, I have a special treat for Week 11. I have a Zoom interview with Robbie Shaw who has extensive
experience on a variety of organizational Boards, from larger publicly traded companies to local non-profit
community Boards. I hope you enjoy our discussion.
So, for Week 11.
Read the summary of the Dey Report, which is available here.
Skim the Wikipedia entry of the Sarbanes Oxley Act of 2002.
Listen to the Lecture Corporate Governance
Listen to my Zoom Interview with Robbie Shaw
Do question 1 of Assignment 7 / 8 which is due July 25, at 8 am.
For Week 12
And so we come to the end …
It has been an interesting time to teach a class on Risk Management. We are in collectively one of the biggest
global risk events that many of you have seen, or perhaps ever will see. Hopefully we are near the end, although
the latest reports are that we can, and should, expect flare-ups from new strains this summer. Likely, you will
experience bigger risk events yourself (and hopefully they are of the good risk type), but collectively and globally
this might be the largest. Who knows? As we hopefully are emerging from COVID there are many questions and
uncertainties about what the “new normal” will be. In fact, I am tired of discussing the new normal as we seems to
be in a never-ending loop on it. As I stated many times, there are also likely to be many discoveries about
“unintended consequences” of risk management during COVID. It is my wish that this course, in part, will help you
consider and think about these risks and future risks in a more value-added way.
There are only two short lectures for this week on the future of risk. I believe that risk management is for the
foreseeable future going to be driven by data and AI. In turn, AI is driven by data, so ultimately the driving factor is
data. Thus, the first lecture is on Data. It is my opinion, that unfortunately we are increasingly becoming
quantitatively illiterate. This is especially so in critical thinking about data issues. COVID has exposed this flaw in
our educational system – but perhaps that is a rant for another time and another place.
While AI and Data will be dominate, that paradoxically make knowledge of, and awareness of complexity, all the
more important. Hopefully, this course has also instilled in you, a proper respect for systems thinking and for
complexity in particular.
Your main task for this week is to prepare for your exam which will be available on Monday, July 25 at 8 am, and
you have until Tuesday, July 26 at 8 am to submit. (Late exams will NOT be accepted and will be given a grade of
In closing I want to thank you for taking this class. When restrictions are relaxed, I hope that many of you will
come by my office in the Rowe Building to introduce yourself, and if you wish, to have a chat or two about risk and
risk management.
I appreciate you taking this class, and I hope that you have found some useful ideas that you can use in the future
– whatever that future might be.
So, for Week 12.
Listen to the Lectures:
a. Risk and Data
b. The Future of Risk
Review your notes in preparation for the final exam which will open at 8 am on July 25 and must be
completed by 8 am July 26.
Do question 2 of Assignment 7 / 8 which is due July 25 at 8 am.
Attend the Live class on Zoom, 8 pm, Wednesday, July 20. Link to follow.
MGMT 3204 Risk Management, Summer 2022
Assignment 7 & 8 (COUNTS DOUBLE)
Due Monday, July 25, 8 am
Find a positive example of corporate risk governance and a negative example of risk
governance. The organization (which could be different for the positive and for the negative
example) could be a corporation, a non-profit organization, a governmental agency, an
educational institution etc. Explain your example, explain why it is a positive or negative
example of risk governance, and explain what lessons you learn from each of your examples>
2. In my roadmap for week 12, and in the lectures for week 12, I make some predictions for the
future of risk management. Pick one prediction or statement that I make that you agree with
and one that you disagree with. Explain your reasoning and why you believe my statement is
incorrect or correct.

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