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.
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.
3 credits
Data analysis, probability models, random variables, estimation, tests of hypotheses, confidence intervals and simple linear regression.
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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.
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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.
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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.
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3 credits
Probability models and random variables. Estimation, confidence intervals, tests of hypotheses, simple linear regression. Applications to engineering.
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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.
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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.
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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.
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3 credits
Overview of finance for the non-business major. Stocks, bonds, mutual funds, financial statement analysis, capital budgeting, financial planning.
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If you have satisfied the course prerequisites for admission, you are invited to apply to the insurance and risk management minor.
Students must complete a total of 15 credits from the list of required courses and elective courses.
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.
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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.
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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.
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Students must take at least two (2) courses from the following list (5 or 6 credits).
3 credits
Theories of consumer choice, production, cost, perfect competition and monopoly. Welfare economics, general equilibrium, externalities and public goods.
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3 credits
Money markets and financial intermediation. Money, the Federal Reserve System and monetary policy. Regulation of money markets.
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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.
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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.
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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.
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3 credits
Advanced financial management of business firms. Theoretical analysis and case applications. Capital budgeting, capital structure, valuation, risk management, mergers and corporate restructuring.
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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.
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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.
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