Risk Management and Insurance

Please note that the Risk Management and Insurance major will be discontinued for students entering in Fall 2025 or later. Students who entered in Fall 2024 or earlier will be able to complete the RMI major requirements.

Achieving financial success depends not only on creating economic value through sound investment and financial strategies but also on designing and implementing effective risk management strategies.

An important focus of Risk Management and Insurance (RMI) is on managing the financial consequences of property, liability, life and health risks by employing insurance, risk pooling and risk management strategies. RMI bridges the gap between insurance and finance studies by considering a wide range of operational, strategic, financial and hazard risks faced by firms and individuals alike. The RMI curriculum conveys the skills needed for analyzing the economic and financial characteristics of risk and understanding techniques for managing such risks.

What is RMI?

Risk Management and Insurance (RMI) has traditionally focused on strategies that might be adopted by a firm or individual to manage those risks that are insurable. Such strategies encompass the management of property, liability, life and health risks.

During recent years, however, increased volatility of interest rates, foreign exchange rates and commodity prices have caused firms and individuals to adopt more holistic, or integrated, views of risk management. Consequently, firms are increasingly pursuing integrated, or enterprise-wide, risk management strategies that seek to determine the full range of operational, strategic, financial and hazard risks threatening shareholder value. From the capital markets side, the rapid growth of the derivatives and related markets, together with the emergence of financial engineering, has led to an emphasis on risk management as one of the critical functions in finance. From the insurance side, insurance policies are being redesigned to bundle protection from several insurance risks and even financial risks. Thus, RMI has evolved to bridge the gap between finance and insurance studies.

An RMI degree can create excellent opportunities for creative work, professional recognition, financial rewards and public service. Increasingly, non-financial companies are recognizing the importance of enterprise-wide risk management and thus are turning to business schools for trained risk managers. There are also a variety of career opportunities in the financial services industries such as insurance, banking, pensions and investment management. RMI graduates serve as risk analysts within the business community and government; as underwriters, claims adjusters, and marketing, planning, governmental relations, and financial management professionals for insurers; as brokers/agents providing professional risk management counseling and market placement services for clients; and as personal financial planners. For more information regarding RMI careers, here are some helpful resources:  

• Insurance Career Roles (article)
• Why an Insurance Career? (video)

For more information about Baylor’s RMI program, including curriculum, career, and networking opportunities, please explore further the links for the various topics listed in the menu.  More information can also be obtained by sending an email to rmi@baylor.edu.