The Minor in Insurance and Risk Management, administered by the Department of Finance, teaches the skills necessary for students seeking careers as underwriters, claim adjusters, agents or brokers in the insurance organization, as well as careers in risk management in financial institutions. Students will learn how to quantify, manage and price risk, while learning the structure, evolution and regulation of the finance and insurance sector of the economy.
The minor is available to students who are enrolled in bachelor’s degree programs at Michigan State University. With the approval of the department and college that administer the student’s degree program, the courses that are used to satisfy the minor may also be used to satisfy the requirements for the bachelor’s degree.
Admission
The online application must be completed by the deadline of April 15, 2021. Admissions decisions are made in late spring each year. Admission is highly competitive and therefore not guaranteed. By applying to the minor, you are agreeing to allow the selection committee to review your grades.
For students participating in S/NS grading, please note that The Broad College will use original numeric grades from Fall 2020 and Spring 2021 in admission decisions for the Insurance and Risk Management Minor.
To be admitted to the minor, students must complete one course from item (a) and one course from item (b). A grade of 3.0 or higher in each course is required for admission.
a. One (1) of the following courses (3 credits)
- STT 200 Statistical Methods*
3 credits
Data analysis, probability models, random variables, estimation, tests of hypotheses, confidence intervals and simple linear regression.
View full course description at the Office of the Registrar.
- STT 201 Statistical Methods*
4 credits
Probability and statistics with computer applications. Data analysis, probability models, random variables, tests of hypotheses, confidence intervals, simple linear regression. Weekly lab using statistical software.
View full course description at the Office of the Registrar.
- STT 231 Statistics for Scientists*
3 credits
Calculus-based course in probability and statistics. Probability models and random variables. Estimation, confidence intervals, tests of hypotheses and simple linear regression with applications in sciences.
View full course description at the Office of the Registrar.
- STT 315 Introduction to Probability and Statistics for Business
3 credits
A first course in probability and statistics primarily for business majors. Data analysis, probability models, random variables, confidence intervals and tests of hypotheses with business applications.
View full course description at the Office of the Registrar.
- STT 351 Probability and Statistics for Engineering
3 credits
Probability models and random variables. Estimation, confidence intervals, tests of hypotheses, simple linear regression. Applications to engineering.
View full course description at the Office of the Registrar.
- STT 421 Statistics I
3 credits
Basic probability, random variables and common distributions. Estimation and tests for one-, two- and paired sample problems. Introduction to simple linear regression and correlation, one-way ANOVA.
View full course description at the Office of the Registrar.
- STT 441 Probability and Statistics I: Probability
3 credits
Probability, conditional probability and independence. Random variables. Discrete, continuous, univariate and multivariate distributions. Expectation and its properties, moment generating functions. Law of large numbers, central limit theorem.
View full course description at the Office of the Registrar.
b. One (1) of the following courses (3 credits)
- FI 311 Financial Management
3 credits
Overview of financial management for business majors. Analysis of financial statements, markets and assets. Risk and valuation, corporate budgeting and investment decisions. International and ethical implications. Current events applications.
View full course description at the Office of the Registrar.
- FI 320 Introduction to Finance
3 credits
Overview of finance for the non-business major. Stocks, bonds, mutual funds, financial statement analysis, capital budgeting, financial planning.
View full course description at the Office of the Registrar.
Apply Now
If you have satisfied the course prerequisites for admission, you are invited to apply to the insurance and risk management minor.
Minor in Insurance and Risk Management Requirements
Students must complete a total of 15 credits from the list of required courses and elective courses.
Required Courses (9 credits)
- FI 380 Principles of Insurance and Risk Management
3 credits
Overview of techniques for measuring and managing risk. Pure risks related to mortality, health-related expenses, property damage and product liability. Management techniques studied include risk assumption, prevention, diversification and transfer via insurance and non-insurance market mechanisms.
View full course description at the Office of the Registrar.
- FI 480 Financial Risk Management
3 credits
Ways in which risks are quantified and managed by financial institutions. Nature of financial institutions and their regulation, the Basel Accords, coherent risk measures, value at risk, copulas, credit risk, operational risk, liquidity risk and the financial crisis of 2007.
View full course description at the Office of the Registrar.
- FI 481 Crises, Insurance and Risk Management
3 credits
Various crises, including financial crises, and natural and man-made disasters. Repercussion of such crises on financial industry and insurance regulations on the structures of the financial and insurance industries, the products offered and the pricing of these products.
View full course description at the Office of the Registrar.
Minor Selection Courses
Students must take at least two (2) courses from the following list (5 or 6 credits).
- EC 301 Intermediate Microeconomics
3 credits
Theories of consumer choice, production, cost, perfect competition and monopoly. Welfare economics, general equilibrium, externalities and public goods.
View full course description at the Office of the Registrar.
- EC 330 Money, Banking and Financial Markets
3 credits
Money markets and financial intermediation. Money, the Federal Reserve System and monetary policy. Regulation of money markets.
View full course description at the Office of the Registrar.
- FI 312 Introduction to Investments
3 credits
Theoretical and empirical analyses of securities. Risk and return formation. Security analysis and concepts of market efficiency. Common stocks, bonds, options, futures and mutual funds.
View full course description at the Office of the Registrar.
- FI 321 Theory of Investments
3 credits
Theoretical analysis of common stocks, bonds, options and futures. Tradeoff between risk and return, market efficiency, efficient portfolios and CAPM. Cash flow evaluation and option evaluation.
View full course description at the Office of the Registrar.
- FI 413 Management of Financial Institutions
3 credits
Management, decision-making and policy formulation for depository and non-depository financial institutions emphasizing commercial banking. Savings banks, credit unions and non-bank financial institutions including investment banks.
View full course description at the Office of the Registrar.
- FI 414 Advanced Business Finance (W)
3 credits
Advanced financial management of business firms. Theoretical analysis and case applications. Capital budgeting, capital structure, valuation, risk management, mergers and corporate restructuring.
View full course description at the Office of the Registrar.
- MKT 319 Marketing Research
3 credits
Research methods designed to obtain information for marketing decisions. Research design, data collection and interpretation of information to aid in making managerial decisions.
View full course description at the Office of the Registrar.
- SCM 475 Supply Chain Decision Modeling
2 credits
Decision modeling in supply chains with emphasis on forecasting, aggregate planning, material requirement planning, inventory management, transportation, supply network design, quality management and sourcing decisions. Use of traditional and advanced spreadsheet modeling tools.
View full course description at the Office of the Registrar.
Get Connected with Broad:
- Business College Complex
- 632 Bogue St
- East Lansing, MI 48824