Strategic Risk Management: An Elective Online MBA Course

Risk management is often a component that appeals to students who are interested in internal resources. There are several different areas to specialize in when it comes to internal resources. One of these specializations include strategic risk management. The overall intention of risk management is to control any potential pitfalls that a business might be involved with in terms of risks that can be detrimental to its overall progression. However, what else does strategic risk management involve and what should students expect from the program?

What Exactly is Strategic Risk Management in an Online MBA Program?

Strategic risk management falls into the category of operational risk. Operational risk by definition is a risk that stems from core business functions in their day-to-day operations. This is a very broad definition and includes all aspects of a business’ operation, which can include its workforce, policies, and technology. Other risks that fall into this category include legal risks, fraud risks, and environmental risks.

Risk management managers employ different approaches to managing operational risks. There are also many times when operational risk can be used to suit a specific business’ overall gain. Examples of this could include credit risk being exploited to generate income as a result of high interest rates borne by negligent consumers. However, operational risk is always kept to a minimum in aims of keeping losses within a predefined risk appetite. However, what this risk appetite is varies throughout all businesses.

Strategic risk management aims to explore the risk appetite of businesses and develops methods that can be used for the business’ benefit overall. For example, home electronic stores may be interested in venturing into credit risk in aims of generating income through collections and high interest rates. However, the cost of collection and administration can greatly outweigh the risk, which has prompted the need for well-trained risk managers to execute their desired strategy.

Is Strategic Risk Management an Easy Online MBA Component to Pass?

Since the information presented within the course is specialized to a specific need, students often find that they do not struggle when undertaking the component. This is because there is ample time to complete the course requirements within a standard academic period. It is also partly due to much of the course being revision work from both project management and marketing components. However, this doesn’t mean that the course is easy! Students must still dedicate themselves to pursing success.

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