Risk Management, B.S. | Penn State (2024)

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Program Description

The Risk Management major prepares students for careers in a wide range of private industries and public service agencies involving such areas as operations, property development, financial strategy, and government. The major is integrative in nature by crossing traditional business boundaries while offering specific areas of study in enterprise risk management, and real estate. High profile risks are faced by leaders and managers up and down the corporate ladder and require specialized skills, knowledge, and preparation. The Risk Management major prepares students for this along with a chance to study risk from various perspectives by offering specialty courses along with a common pool of risk management courses. This structure assures that the students in the risk management major are equipped with the common tools of risk analysis while at the same time permitting the students to tailor the specifics of their training.

Enterprise Management Option

The Enterprise Risk Management Option prepares students to identify, quantify and qualify the regulatory, legal, financial and contractual aspects of enterprise risk; the management of such risks; and the application of risk financing techniques to control risk exposures in organizations. Emphasis is also placed on the understanding of the principles and risks underlying complex business contracts.

Real Estate Option

This option is designed to prepare the student for a wide range of professional opportunities in corporate real estate management, real estate brokerage, appraisal, property management, mortgage lending and banking, development, and governmental service.

What is Risk Management?

Organizations face a wide array of risks in today's rapidly changing and complex business environment. Operations can be disrupted by a variety of unanticipated factors, ranging from external forces like natural disasters and political risks to internal factors like faulty product design and flawed financial systems. CEOs make risky strategic decisions in an increasingly competitive marketplace where the cost of missteps is high. In recent years, firms have encountered new risks in the form of financial mismanagement, global litigation, and the growing costs of human resources.

The goal of Risk Management is to enhance firm value through the optimal treatment of risk. Corporate interest in enterprise risk management has grown steadily in recent years, fueled in part by regulatory mandates for improved risk management systems. In addition, organizations like Standard & Poor’s, the Securities and Exchange Commission, and the New York Stock Exchange now require increased risk management disclosure and assessment in corporate financial statements.

Risk Management can often be categorized into four general areas of risk:

1. Hazard Risk: Lawsuits or damage from natural disasters.
2. Operational Risk: Risk resulting from failed systems, poor design, or worker error.
3. Financial Risk: Excessive operating costs and changes in commodity prices or currencies.
4. Strategic Risk: Corporate gains and losses from changes in consumer demand.

MORE INFORMATION ABOUT RISK MANAGEMENT

Entrance to Major

To be eligible for entrance into the Risk Management major, a degree candidate must be enrolled in the Smeal College of Business or the Division of Undergraduate Studies and satisfy the requirements for entrance.

Administrative Enrollment Controls

This program currently has administrative enrollment controls. Administrative Enrollment Controls are initiated when limitations of space, faculty, or other resources in a major prevent accommodating all students who request them. Students must follow the administrative enrollment controls that are in effect for the semester that they enter the university.

First-Year Students Entering Summer 2024, Fall 2024, Spring 2025

In order to be eligible for entrance to this major, students must satisfy the following requirements:

• 36-59 graded Penn State credits (excludes transfer and AP credits)
• completed with a grade of C or better:
  • English - ENGL15 or ENGL30H or ESL15 or ENGL137H or CAS137H
  • Mathematics - MATH110 or MATH140 or MATH140B
  • Statistics - SCM200 or SCM200H or STAT200
• completed ECON102 or ECON102H
• completed at Penn State (no substitutions or transfers), in addition with a quality grade of "C" or better and no alternative or Pass/Fail (PS) grading:
  • Accounting - ACCTG211 or ACCTG211H
  • Management - MGMT301 or MGMT301H or MGMT301M or MGMT301W
  • Marketing - MKTG301 or MKTG301H or MKTG301W
  • Finance - FIN301 or FIN301H
• earned a minimum cumulative grade-point average (GPA) of 3.20

Students Who Entered Prior to Summer 2024

Students who entered the University from Summer 2018 through Spring 2024 should view the administrative enrollment controls in the appropriate Undergraduate Bulletin archive. Students who entered the University prior to the summer 2018 semester should consult with their academic adviser about the administrative enrollment controls in effect for the semester they entered the university.

Degree Requirements

For the Bachelor of Science degree in Risk Management, a minimum of 120 credits is required with at least 15 credits at the 400 level:

12 of the 45 credits for General Education are included in the Requirements for the Major.This includes: 3 credits of GWS courses (ENGL202D); 6 credits of GQ courses (MATH110 or MATH140 and SCM200 or STAT200); 3 credits of GS courses (ECON102).

Requirements for the Major

To graduate, a student enrolled in the major must earn a grade of C or better in each course designated by the major as a C-required course, as specified by Senate Policy 82-44.

Common Requirements for the Major (All Options)

Course List

Code	Title	Credits
Prescribed Courses
BA342	Socially Responsible, Sustainable and Ethical Business Practice	3
BA411	Analyzing Business and Industry	3
BLAW341	Business Law I: Introduction to Contracts, Liability Issues, and Intellectual Property	3
ECON102	Introductory Microeconomic Analysis and Policy	3
ECON104	Introductory Macroeconomic Analysis and Policy	3
MIS250	Introduction to Problem Solving with Spreadsheet Analysis and Information Systems Management	3
SCM301	Supply Chain Management	3
Prescribed Courses: Require a grade of C or better
ACCTG211	Financial and Managerial Accounting for Decision Making	4
ENGL202D	Effective Writing: Business Writing	3
FIN301	Corporation Finance	3
MGMT301	Basic Management Concepts	3
MKTG301	Principles of Marketing	3
Additional Courses
Additional Courses: Require a grade of C or better
MATH110	Techniques of Calculus I	4
orMATH140	Calculus With Analytic Geometry I
SCM200	Introduction to Statistics for Business	4
orSTAT200	Elementary Statistics
Supporting Courses and Related Areas
Attainment of 12th credit level proficiency in a single world language. Proficiency must be demonstrated by either examination or coursework.		4
Requirements for the Option
Select an option		24

Requirements for the Option

Enterprise Risk Management Option (24 credits)

Real Estate Option (24 credits)

General Education

Connecting career and curiosity, the General Education curriculum provides the opportunity for students to acquire transferable skills necessary to be successful in the future and to thrive while living in interconnected contexts. General Education aids students in developing intellectual curiosity, a strengthened ability to think, and a deeper sense of aesthetic appreciation. These are requirements for all baccalaureate students and are often partially incorporated into the requirements of a program. For additional information, see the General Education Requirements section of the Bulletin and consult your academic adviser.

The keystone symbol appears next to the title of any course that is designated as a General Education course. Program requirements may also satisfy General Education requirements and vary for each program.

Foundations (grade of C or better is required and Inter-Domain courses do not meet this requirement.)

• Quantification (GQ): 6 credits
• Writing and Speaking (GWS): 9 credits

Breadth in the Knowledge Domains (Inter-Domain courses do not meet this requirement.)

• Arts (GA): 3 credits
• Health and Wellness (GHW): 3 credits
• Humanities (GH): 3 credits
• Social and Behavioral Sciences (GS): 3 credits
• Natural Sciences (GN): 3 credits

Integrative Studies

• Inter-Domain Courses (Inter-Domain): 6 credits

Exploration

• GN, may be completed with Inter-Domain courses: 3 credits
• GA, GH, GN, GS, Inter-Domain courses. This may include 3 credits of World Language course work beyond the 12th credit level or the requirements for the student’s degree program, whichever is higher: 6 credits

University Degree Requirements

First Year Engagement

All students enrolled in a college or the Division of Undergraduate Studies at University Park, and the World Campus are required to take 1 to 3 credits of the First-Year Seminar, as specified by their college First-Year Engagement Plan.

Other Penn State colleges and campuses may require the First-Year Seminar; colleges and campuses that do not require a First-Year Seminar provide students with a first-year engagement experience.

First-year baccalaureate students entering Penn State should consult their academic adviser for these requirements.

Cultures Requirement

6 credits are required and may satisfy other requirements

• United States Cultures: 3 credits
• International Cultures: 3 credits

Writing Across the Curriculum

3 credits required from the college of graduation and likely prescribed as part of major requirements.

Total Minimum Credits

A minimum of 120 degree credits must be earned for a baccalaureate degree. The requirements for some programs may exceed 120 credits. Students should consult with their college or department adviser for information on specific credit requirements.

Quality of Work

Candidates must complete the degree requirements for their major and earn at least a 2.00 grade-point average for all courses completed within their degree program.

Limitations on Source and Time for Credit Acquisition

The college dean or campus chancellor and program faculty may require up to 24 credits of course work in the major to be taken at the location or in the college or program where the degree is earned. Credit used toward degree programs may need to be earned from a particular source or within time constraints (see Senate Policy 83-80). For more information, check the Suggested Academic Plan for your intended program.

Academic Advising

The objectives of the university's academic advising program are to help advisees identify and achieve their academic goals, to promote their intellectual discovery, and to encourage students to take advantage of both in-and out-of class educational opportunities in order that they become self-directed learners and decision makers.

Both advisers and advisees share responsibility for making the advising relationship succeed. By encouraging their advisees to become engaged in their education, to meet their educational goals, and to develop the habit of learning, advisers assume a significant educational role. The advisee's unit of enrollment will provide each advisee with a primary academic adviser, the information needed to plan the chosen program of study, and referrals to other specialized resources.

READ SENATE POLICY 32-00: ADVISING POLICY

University Park

Advising Center
Smeal College Undergraduate Education
202 Business Building
University Park, PA 16802
814-863-1947
SmealAdvising@smeal.psu.edu

Suggested Academic Plan

The suggested academic plan(s) listed on this page are the plan(s) that are in effect during the 2024-25 academic year. To access previous years' suggested academic plans, please visit the archive to view the appropriate Undergraduate Bulletin edition.

Enterprise Risk Management Option: Risk Management, B.S. at University Park Campus

The course series listed below provides only one of the many possible ways to move through this curriculum. The University may make changes in policies, procedures, educational offerings, and requirements at any time. This plan should be used in conjunction with your degree audit (accessible in LionPATH as either an Academic Requirements or What If report). Please consult with a Penn State academic adviser on a regular basis to develop and refine an academic plan that is appropriate for you.

¹

Course requires a grade of C or better

²

Entrance-to-Major Course – complete prior to attaining 59 cumulative credits at Penn State

³

Attain 12^th credit level proficiency in a world language (0-12 credits). Credits required vary based on predetermined skill level. Balance of remaining credits are taken as electives.American Sign Language does not satisfy the Smeal College world language requirement.

⁴

When planning general education and elective courses, students should factor in the following requirements:

• 3 credits of United States Culture (US)
• 3 credits of International Culture (IL)
• 6 credits of Inter-Domain (N) coursework

⁵

See the Business Breadth Course list on the Smeal College website.

⁶

See the Risk Management Department website for the list of RM-ERM electives.

University Requirements and General Education Notes:

US and IL are abbreviations used to designate courses that satisfy Cultural Diversity Requirements (United States and International Cultures).

W, M, X, and Y are the suffixes at the end of a course number used to designate courses that satisfy University Writing Across the Curriculum requirement.

General Education includes Foundations (GWS and GQ), Knowledge Domains (GHW, GN, GA, GH, GS) and Integrative Studies (Inter-domain) requirements. N or Q (Honors) is the suffix at the end of a course number used to help identify an Inter-domain course, but the inter-domain attribute is used to fill audit requirements. Foundations courses (GWS and GQ) require a grade of 'C' or better.

All incoming Schreyer Honors College first-year students at University Park will take ENGL137H/CAS137H in the fall semester and ENGL138T/CAS138T in the spring semester. These courses carry the GWS designation and satisfy a portion of that General Education requirement. If the student’s program prescribes GWS these courses will replace both ENGL15/ENGL30H and CAS100A/CAS100B/CAS100C. Each course is 3 credits.

College and Department Notes:

1. The Smeal College of Business requires that the following entrance-to-major courses be taken at Penn State: ACCTG211, MGMT301, MKTG301, and FIN301.
2. Pursuant to the Association to Advance Collegiate Schools of Business (AACSB) accreditation standards, the Smeal College of Business requires that all upper division courses within the departments sponsoring the major be completed in residence at University Park under the instruction of Smeal College faculty.

Enterprise Risk Management Option: Risk Management, B.S. at Commonwealth Campuses

The course series listed below provides only one of the many possible ways to move through this curriculum. The University may make changes in policies, procedures, educational offerings, and requirements at any time. This plan should be used in conjunction with your degree audit (accessible in LionPATH as either an Academic Requirements or What If report). Please consult with a Penn State academic adviser on a regular basis to develop and refine an academic plan that is appropriate for you.

¹

Course requires a grade of C or better

²

Entrance-to-Major Course – complete prior to attaining 59 cumulative credits at Penn State

³

Attain 12^th credit level proficiency in a world language (0-12 credits). Credits required vary based on predetermined skill level. Balance of remaining credits are taken as electives.American Sign Language does not satisfy the Smeal College world language requirement.

⁴

When planning general education and elective courses, students should factor in the following requirements:

• 3 credits of United States Culture (US)
• 3 credits of International Culture (IL)
• 6 credits of Inter-Domain (N) coursework

⁵

See the Business Breadth Course list on the Smeal College website.

⁶

See the Risk Management Department website for the list of RM-ERM electives.

University Requirements and General Education Notes:

US and IL are abbreviations used to designate courses that satisfy Cultural Diversity Requirements (United States and International Cultures).

W, M, X, and Y are the suffixes at the end of a course number used to designate courses that satisfy University Writing Across the Curriculum requirement.

General Education includes Foundations (GWS and GQ), Knowledge Domains (GHW, GN, GA, GH, GS) and Integrative Studies (Inter-domain) requirements. N or Q (Honors) is the suffix at the end of a course number used to help identify an Inter-domain course, but the inter-domain attribute is used to fill audit requirements. Foundations courses (GWS and GQ) require a grade of 'C' or better.

College and Department Notes:

1. The Smeal College of Business requires that the following entrance-to-major courses be taken at Penn State: ACCTG211, MGMT301, MKTG301, and FIN301.
2. Pursuant to the Association to Advance Collegiate Schools of Business (AACSB) accreditation standards, the Smeal College of Business requires that all upper division courses within the departments sponsoring the major be completed in residence at University Park under the instruction of Smeal College faculty.

Career Paths

Corporations and non-profits have turned to risk management to protect themselves from the adverse consequences of all of these risks. Risk analysis touches a wide range of systems including management and control of risk and legal, political, economic, and property risk assessment. This rigorous program of study is designed to prepare students for careers in risk management, compliance, risk analysis, and government agencies that demand quantitative and qualitative skills needed to meet modern risk assessment requirements.

Risk Management (RM_BS) prepares students to work in the risk management departments of major multinational and domestic corporations. The risk management function interacts with a firm’s internal and external auditing functions and reports to the Board of Directors and senior offices of publicly traded companies. Demand for risk management expertise has grown throughout the economy since 2000, especially among healthcare, energy, and financial services firms. Students are recruited in these areas and by firms in industries related to risk management, including accounting firms, insurance companies, insurance brokerage, consultancy, and benefits management.

Average starting salaries for full-time employment are in the $60,000 range. Internships are paid experiences with hourly rates around $20.00 an hour.

Accreditation

The Smeal College of Business B.S. degree in Risk Management (RM_BS) is recognized by the AACSB (Association to Advance Collegiate Schools of Business) as an accredited program after completing a meticulous internal review and meeting all AACSB standards and requirements.

MORE INFORMATION ABOUT THE ASSOCIATION TO ADVANCE COLLEGIATE SCHOOLS OF BUSINESS

Professional Licensure/Certification

Many U.S. states and territories require professional licensure/certification to be employed. If you plan to pursue employment in a licensed profession after completing this program, please visit the Professional Licensure/Certification Disclosures by State interactive map.

Contact

University Park

DEPARTMENT OF RISK MANAGEMENT
355 Business Building
814-865-4172
rm@smeal.psu.edu

https://www.smeal.psu.edu/risk-management

Ask A Question: https://directory.smeal.psu.edu/contact/rm