RMI majors are required to take the principles course in risk management and insurance (FIN 3305) and a total of three elective RMI courses. As a twelve-hour major, RMI can be a stand-alone major or added as a double major by adding a specialty focus to a complementary major. For suggested double-major degree pairings, see RMI as a Double Major.
Here are some brief descriptions of the topics covered in each of the five Risk Management and Insurance (RMI) courses offered at Baylor University:
FIN 3305 Principles of Risk Management and Insurance
An examination of the techniques for managing pure risks in order to maximize the value of a firm. The course contrasts the risk preferences of corporations with that of individuals and explores the implications of differing preferences on insurance purchase decisions. The characteristics of insurance as a tool in the process of managing both corporate and personal risk exposures are emphasized.
Elective Courses (pick three out of the following four electives)
FIN 4311 Fundamentals of Life and Health Insurance
A study of the financial implications of death, disability, and retirement, as well as the corresponding forms of individual life insurance, health insurance and annuities. Elementary life and health insurance programming, taxation, legal aspects, business uses of individual life and health insurance, regulation and insurer operations and functions are covered.
FIN 4320 Fundamentals of Property and Liability Insurance
A study of the various types of commercial risks common to businesses of all sizes and the types of property-liability insurance that are available for managing such risks, including commercial property insurance, business income insurance, commercial crime insurance, equipment breakdown insurance, inland, and ocean marine insurance, commercial general liability (CGL) insurance, commercial automobile insurance, workers compensation insurance, employers liability insurance and specialty coverages.
FIN 4332 Employee Benefit Planning
A survey of the most common employee benefits, including cash and stock compensation, employer-provided group-life and group-health insurance benefits, qualified and non-qualified deferred compensation and retirement plans, and other benefits such as cafeteria plans, educational reimbursement, disability and employer-provided leave. The approach focuses on the regulatory, income tax and compensation theory aspects of each topic.
This course provides a comprehensive approach to risk management by integrating concepts, tools, and techniques from finance and related fields such as economics and the decision sciences. The course emphasizes the identification, evaluation, pricing, and management of risk from both personal and corporate perspectives. Key topics covered include understanding and measuring risk attitudes, comparing and pricing risks, assessing the impact of risk on stakeholder incentives, and devising effective risk management strategies for individuals and organizations.
To earn a major in Risk Management and Insurance, a student must attain at least a “C” in FIN 3309 (Introduction to Finance) or FIN 3310 (Introduction to Corporate Finance). Other than taking FIN 3305 (Principles of Risk Management and Insurance) as the first course (recommended), there is no requirement that courses for a Risk Management and Insurance major must be taken in a specific sequence. The Department strongly recommends, however, that any student desiring to major in Risk Management and Insurance take FIN 3309 or FIN 3310 as soon as possible in their junior year.
Learn more about the RMI Major and a suggested semester schedule.