SDST3610 Risk management and insurance (6 credits) Academic Year 2025
Offering Department SCDS (Department of Statistics and Actuarial Science) Quota ---
Course Co-ordinator Prof A W F Chong, SCDS (Department of Statistics and Actuarial Science) < chongwf@hku.hk >
Teachers Involved (Prof A W F Chong,Statistics & Actuarial Science)
Course Objectives This course provides knowledge on basic risk and its management, as well as basic financial planning through insurance products, to students. It allows students to understand the statistical, financial and legal principles underlying the techniques for managing the insurable risks faced by organisations and individuals.  This course aims at students who have minimal background in quantitative methods, it involves very minimal quantitative calculations.
Course Contents & Topics The course introduces and explains:
- risk in our society,
- insurance and risk,
- introduction to risk management,
- fundamental legal principles, and analysis of insurance contracts,
- life insurance, their contractual provisions,
- individual health insurance coverages.
Course Learning Outcomes
On successful completion of this course, students should be able to:

CLO 1 understand the general risks faced by organisations and individuals and the generic risk management principle
CLO 2 demonstrate knowledge and understanding of the underlying financial and legal principles of the insurance industry
CLO 3 understand how risk can be managed through insurance
CLO 4 compare and contrast different types of commercial and personal insurance products
CLO 5 plan for and arrange their own personal insurance needs
Pre-requisites
(and Co-requisites and
Impermissible combinations)		 Pass in BIOL2102 or (ECON1280 and any University level 2 course) or (SDST1601 and any University level 2 course) or (SDST1602 and any University level 2 course) or SDST2601 or (SDST1603 and any University level 2 course) or SDST2901.
(Not available to Actuarial Science students)
Only for students admitted in 2025 and thereafter.
Course Status with Related Major/Minor /Professional Core 2U000C00 Course not offered under any Major/Minor/Professional core
2024 Major in Risk Management ( Disciplinary Elective )
2024 Minor in Risk Management ( Disciplinary Elective )
2023 Major in Risk Management ( Disciplinary Elective )
2023 Minor in Risk Management ( Disciplinary Elective )
2022 Major in Risk Management ( Disciplinary Elective )
2022 Minor in Risk Management ( Disciplinary Elective )
2021 Major in Risk Management ( Disciplinary Elective )
2021 Minor in Risk Management ( Disciplinary Elective )
Course to PLO Mapping 2024 Major in Risk Management < PLO 1,2,3,4,5 >
2023 Major in Risk Management < PLO 1,2,3,4,5 >
2022 Major in Risk Management < PLO 1,2,3,4,5 >
2021 Major in Risk Management < PLO 1,2,3,4,5 >
Offer in 2025 - 2026 Y        2nd sem    Examination May     
Offer in 2026 - 2027 Y
Course Grade A+ to F
Grade Descriptors
A Demonstrate thorough mastery at an advanced level of extensive knowledge and skills required for attaining all the course learning outcomes. Show strong analytical and critical abilities and logical thinking, with evidence of original thought, and ability to apply knowledge to a wide range of complex, familiar and unfamiliar situations. Apply highly effective organizational and presentational skills.
B Demonstrate substantial command of a broad range of knowledge and skills required for attaining at least most of the course learning outcomes. Show evidence of analytical and critical abilities and logical thinking, and ability to apply knowledge to familiar and some unfamiliar situations. Apply effective organizational and presentational skills.
C Demonstrate general but incomplete command of knowledge and skills required for attaining most of the course learning outcomes. Show evidence of some analytical and critical abilities and logical thinking, and ability to apply knowledge to most familiar situations. Apply moderately effective organizational and presentational skills.
D Demonstrate partial but limited command of knowledge and skills required for attaining some of the course learning outcomes. Show evidence of some coherent and logical thinking, but with limited analytical and critical abilities. Show limited ability to apply knowledge to solve problems. Apply limited or barely effective organizational and presentational skills.
Fail Demonstrate little or no evidence of command of knowledge and skills required for attaining the course learning outcomes. Lack of analytical and critical abilities, logical and coherent thinking. Show very little or no ability to apply knowledge to solve problems. Organization and presentational skills are minimally effective or ineffective.
Communication-intensive Course N
Course Type Lecture-based course
Course Teaching
& Learning Activities
Activities Details No. of Hours
Lectures 36.0
Tutorials 12.0
Reading / Self study 100.0
Assessment Methods
and Weighting
Methods Details Weighting in final
course grade (%)		 Assessment Methods
to CLO Mapping
Assignments Coursework (assignments, tutorials, and a class test) 25.0 1,3
Examination One 2-hour written examination 75.0 1,2,3,4,5
Required/recommended reading
and online materials		 Rejda, G. E.: Principles of Risk Management and Insurance (Pearson Addison Wesley, 10th edition)
Trieschmann, J., Hoyt, R. E. and Sommer, D.: Risk Management and Insurance (South-Western, 2005, 12th edition)
Course Website http://moodle.hku.hk
Additional Course Information NIL