1 chant link & associates: 3148 master of risk management report a report on alignment of...
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1 Chant Link & Associates: 3148 Master of Risk Management Report
A Report on Alignment of Masters of Risk Management Course to Student Needs and Industry TrendsProject Number 3148, 12th March 2008Prepared for: Norm Wall, Group Manager, Marketing and Recruitment, Faculty of Business & Economics, Monash University and Michael Vincent, Course LeaderProject Manager: Lachlan Drummond, Director
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ContentsBackground
Objectives
Research Approach & Sample
Main Findings
Growth in Risk Management
Drivers of Growth
Issues in Risk Management
Education Provider Awareness and Positioning
Drivers of Study
Attitudes Towards Monash Course Overall
Reaction to Individual Units
Reaction to Possible Course Change
Suggestions for Changes and Improvements
Conclusions
Recommendations
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BackgroundMaster of risk management: Risk management is a growth area in the Australian economy as
businesses have become more sophisticated in recognising and planning for risk related issues.
The Master of Risk Management at Monash University has experienced growth since 2002. The
course provides education in the area of risk management and related topics appropriate for
practitioners seeking to meet professional education requirements or update their skills in
specific risk management areas.
Need for research: Whilst the course is successful, it has grown organically and without a clear
understanding as to the needs, expectations and satisfaction of prospective and current
students.
Consequently, Monash University approached Chant Link & Associates to propose research
aimed at understanding these issues among others, so that the Master of Risk Management is
optimised for the student experience and enrolments.
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Research ObjectivesOverall objective: Determine the needs, expectations and overall attitudes among key
stakeholders to the Master of Risk Management and to provide Monash with insights that
enables it to make decisions to maximise the success of the program and manage its direction.
Specific objectives: To meet the overall objective, the following specific objectives were
identified:
Industry and provider related:
Identify overall industry trends and growth areas in Risk Management and the extent to
which higher education overall and Monash specifically is addressing these trends;
Understand the extent and quality of Monash-industry engagement;
Determine industry awareness of the Master of Risk Management at Monash and attitudes
to it including suggestions for improving quality of relationship and communications between
industry and Monash.
Industry and provider related, continued…
Identify other major providers of Master of Risk Management programs and the relative
standing of each, including:
□ Strengths, weaknesses, positioning, reputations and how Monash compares to other
providers.
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Research Objectives … continued
Specific objectives … continued
Course related: Determine attitudes to the Master of Risk Management course overall and the
units offered including:
Determine attitudes to course structure including strengths, weaknesses, satisfaction and
suggestions for improvements and underlying reasons;
Identify strengths and weaknesses of each unit and the relative importance attached to
each. For example:
□ How appropriate and valued is each unit and why?
□ Determine whether the content of each unit is appropriate;
□ Identify gaps in course and unit content. Are there any specific units that should be
offered that are not (that would meet needs and industry trends)?
Determine the quality of the student experience overall and drivers and detractors of this;
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Research Objectives … continued
Specific objectives … continued
Course-related … continued
Determine the importance of and preferences for other factors that impact on attitudes including
(but not limited to):
□ Student cohort (Including aptitude, appropriate career levels and domestic and
international student ratios);
□ Attitudes to and appropriateness of assessment;
□ Extent to which the course equipped students in their careers;
□ Entry requirements;
□ Fees;
□ Staffing; (current, desired)
□ Course structure;
□ Communications;
□ Facilities;
□ Study modes
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Research Objectives … continued
Specific objectives … continued
Strategic objectives:
Determine awareness of and opinions on current marketing communications. Identify
preferences and suggestions for improvements;
Understand optimum course configuration for attracting students and improving the overall
positioning;
Make recommendations to guide course content and structure;
Identify industries of relevance for targeting of future students;
Provide Monash with a ‘road map’ which guides the future development of the Master of
Risk management including course content, structure and units offered.
Understand reactions to a possible shift in alignment more towards a GSB positioning and
possibly away from an Accounting and Finance positioning.
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Research Approach & Sample StructureResearch method: As the objectives of this project related to understanding attitudes and
underlying reasons for these attitudes, a qualitative depth interview approach was selected.
Sample structure: 21 interviewees were recruited from a list of approximately 50 current
students, sessional lecturers, alumni and industry leaders supplied by Monash.
Interviews of approximately 45 minutes were conducted with students and alumni included a
an even mix of male, female, domestic and international students. The interviews were
conducted in December 2007.
The following table illustrates the final sample structure.
Students AlumniSessional
LecturersIndustry Leaders Total
6 9 1 5 21
Note: Within this sample there were four interviews conducted with two participants, bringin the total
number of people interviewed to 25.
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Industry Trends
Main Findings:
Evolution & Issues in Risk Management
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Growth in Risk ManagementGrowth in risk management: Participants viewed risk management as a fast-growing area, which had evolved substantially in the last 20 to 30 years. They noted the following key changes:
Increased level of importance: Business was perceived to place more importance on risk management as it came to understand the benefits of good risk management practices (and the implications of failure). Many participants reported senior management and boards beginning to embrace risk management, which influenced corporate behaviour as risk practices filtered down through management levels to the rest of the employees.
“Every dog has it’s day and this profession is at the top now. It is high on organisational prominence.”
“Risk Management is the current flavour. It is in the growth phase of a product life cycle. You can see it in ads for workplace safety, cooling towers and Legionnaire's Disease through to food poisoning.”
Broadening focus: Where traditionally risk management had focused on finance, insurance and loss prevention, its focus was now broadening to include end-to-end business processes.
“Risk Management is now a broad church.” [Industry Leader, Banking & Finance]
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More strategic and integrated into end-to-end business practice: Risk management processes were starting to permeate all aspects of business activities. Risk management was now becoming a way of doing business as opposed to simply a function. Many interviewees made comments to this effect:
“Risk management is becoming integrated into business processes. You now need a [risk management] framework which drives your policies … like, procurement risk should [now] be part of your procurement policy.”
“It is a company wide process. It is not solely a finance issue.”
“In the current market most companies look at risk management in terms of financial risk management. However risk management has much more of an operational role in the organisation. It’s about control and implementing procedures across the business to be able to avoid risks.”
“Five years ago nobody knew what risk management was, let alone had heard of a person who specialised as a risk manager. Today there is much wider knowledge.”
“I think one of the main things that will happen in the industry is that there will be a move to see risk management as not being solely about financial or insurance type risks. I think that the leading organisations will see risk management as an integrated procedure that touches all parts of the company.”
Growth in Risk Management…continued
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Risk Management accepted as a “profession”: In the past, risk managers tended to “fall”
into the job; there was a view that almost anyone could do risk management. Today, risk
managers are expected to liaise with all levels within a business (e.g. from the board level
down), anticipate situations and take a proactive approach to managing risk. Consequently,
risk management had moved from a more peripheral function to a central role. This has had
positive implications on the perceived importance and maturity of the profession.
“Most organisations only consider risk management as moderately important. Until it is seen
in terms of its critical nature, it will sit outside the more traditional professions. Slowly
though, it is moving to be perceived at a strategic level.”
“Given the focus of much of risk management on financial risk, many of the people in the
industry are at least accounting degree qualified. I think that there will be a move toward
specialisation in terms of degree qualification for risk managers as a result of the role being
integrated across the company.”
Growth in Risk Management…continued
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Increased importance of qualifications: With the growth of risk management has come
the need for employers to identify and appoint more qualified risk managers. Participants
noted that there was now greater importance placed on risk management qualifications and
appropriate experience.
“You see advertisements for jobs in finance that state that they are seeking a CPA for
instance, we are not seeing that in risk management yet. But I think as the market
[employers] becomes more educated about the importance of risk management and the
type of qualifications that are available, then we may start to see job advertisements
requesting specific qualifications.”
Growth in Risk Management…continued
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More proactive, less reactive: Business has moved from perceiving risk management as a
discipline to a profession. Previously, many organisations had taken an “operational” risk
management approach and preferred to wait until action was needed or forced upon it. A
number of participants commented that this focus on losses resulted in many lost business
opportunities. Risk management was now providing opportunities to improve reputation and
increase profits. One example provided was Qantas, which had been able to capitalise on
its safety record, which had strong appeal to air travelers, particularly after 9/11.
“In our industry the traditional approach to risk has been for some regulator to come along
and find something wrong, fine us, and then we fix it. Since I started in this job we have not
had one fine, and we have not had one large exposure… in fact this year we expected a
30% increase in our insurance premiums and because of our risk management plans we
actually received only about a 5% increase.” [Alumni, Racing Industry]
“ … risk management became about how do you grasp opportunities. Suddenly risk was no
longer negative risk, just doom and gloom, it had opportunity as well as protection from
loss.“ [Industry Leader]
Growth in Risk Management…continued
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Drivers of Risk Management GrowthDrivers of risk management growth: As noted, risk management has experienced a period of strong growth. Participants noted a variety of reasons for the growth of risk management. The key drivers were:
High profile corporate failures: Widespread publicity of high profile failures in the late 1990s and early 2000s (e.g. WorldCom, Enron and HIH) had highlighted the possible impacts of poor risk management. Participants noted that the far reaching impacts of such failures (e.g. substantial financial losses, damage to reputation, and in some cases corporate collapses and criminal charges) provided a strong incentive to effectively manage risk.
“This generated a whole focus of the community to stop businesses doing whatever they wanted to do!.. One example is Enron…” [Alumni, Banking & Finance]
Increasing litigation: There was also a general view that society was becoming more litigious, and organisations were taking steps to protect their businesses from harmful actions.
Strong global economic growth: General economic growth and boom meant that organisations had grown quickly and had to have processes in place to manage the increased levels of risk. Additionally, as organisations grew, there was more at stake should anything go wrong.
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Global risk: A perceived increase in terrorism had contributed to a greater awareness of
risk and a broadening of the elements of risk to be considered. The risk of terrorism had
made risk avoidance or mitigation much more critical, particularly as human lives and
expensive assets were at stake (in addition to possible financial losses).
Increasing personal liability: There was a perception of an increased risk of executive
liability. Where individuals perceived a personal risk, they were more likely to focus on and
enforce risk management policies and process.
“In the US hundreds of Directors have gone to jail. I know of a $10 million law suit from
shareholders. These things scare boards into taking risk seriously.”
Drivers of Risk Management Growth … continued
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Regulatory drivers: Regulatory drivers were increasing, particularly as more legislation
was introduced (e.g. Corporations Act in 2001). At the time of the fieldwork, some
participants were implementing processes to comply with recently introduced Anti-Money-
Laundering (AML) legislation, and this required a high level of expertise from Risk Managers
in interpreting legislative requirements and rolling out new processes. Others also talked
about risk being incorporated into Standards Australia and the Australian Stock Exchange
Principles of Good Corporate Governance, all of which contributed to greater adoption in the
private sector.
“The government is the insurer of last resort and they don’t want to have to pick up the
pieces and fund large losses.”
“ … companies now have risk management committees, because they are required to by
legislation…”
Drivers of Risk Management Growth … continued
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Issues in Risk ManagementCurrent issues confronting risk managers: Participants identified a number of key issues
confronting risk management professionals, which they believed required specific skill sets,
which possibly represented opportunities for providers of risk management education:
Climate change: A few participants were very passionate about the impact of climate
change on business, and how important it was for risk managers to account for this.
Businesses now needed to factor in risks associated with global temperature changes,
drought, flooding just to being with. Some participants also noted that there were
opportunities that astute businesses could take advantage of once the risk was identified
(e.g. more efficient cars or cars which used renewable resources was a growth area).
“The other thing that we need to look at is the role of risk management in planning for
climate change and all the problems that go with that … now Emergency Management
Australia and the Charles Sturt University have started to address that …”
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Outcomes not always tangible: It was often difficult to sell the benefits of risk
management to senior management, as the cost benefit to business was not always
apparent. Risk Managers needed to understand how to effectively communicate with
Boards (which some participants noted preferred quantifiable reporting methods).
“I can’t tell people how may risks I prevented this year, which makes it difficult to sell
internally. Risk Management is working well when nothing happens!”
“There is that perception in industry that risk management is about sorting out lose ends… if
I have my way, I’ll change that….”
Risk management a passing phase?: There remained a view in some businesses that
risk management was a “buzz word” now, but that it would become less fashionable, thus
there was limited benefit in investing in this area. Participants reported problems obtaining
adequate resourcing as a result of this, and that it was a key skill required in top risk
management to overcome this mind-set within management.
“There is a perception out there that risk management is just a passing phase, which means
that the risk management area is often very under resourced … just look at my organisation
– it has 5,000 people, but I’m it [the only risk management resource]!”
Issues in Risk Management… continued
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Increased focus on IT: Businesses were more aware of the risks surrounding their
information technology, particularly:
□ Legacy systems: Were complex and often not well documented, and there were skills
shortages for maintenance staff;
□ New system implementations: Greater importance was now placed on project
management and risk management methodology, particularly was government
departments introduced more criteria (e.g. Department of Finance and Trade had
introduced the Gateway Program).
Importance of corporate governance: Many participants had noticed an increase in
corporate governance, brought on both by government legislation and better understanding
from business as to how vital good governance was. This high focus on governance,
particularly by senior management, was an excellent opening for Risk Managers to “sell” the
importance of the organisations having an effective risk management framework.
Issues in Risk Management… continued
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Increasing compliance activities: A few participants commented that compliance activities
were growing. While most spoke positively about this, they also noted that this required high
levels of expertise from risk management areas and also had an impact on risk
management resourcing (since compliance was often effort intensive, and mandatory).
“In particular I think that compliance management is a huge, up and coming area. I have
heard so much about it lately … “
Issues in Risk Management… continued
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Risk Management Evolution: As already discussed, risk management has had a gradual
evolution of the last 20-30 years.
In summary, participants believed risk management in its early stages had a strong finance and
insurance focus. Risk management was then more focused on “operational” activities, and
tended to have a reactive approach. A number of drivers had resulted in today’s risk
management having a broader vision, being integrated into business processes and being used
to seek more business opportunities (i.e. it is more proactive). This raises the question of
whether risk management will continue to grow or stabilise:
Continued growth?: Risk management may develop its proactive focus, integration and
become even more prominent as corporate Australia recognises the importance and
benefits of risk management, or …
Issues in Risk Management… continued
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Risk Management Evolution, continued…
Stabilisation?: Corporate Australia might lose interest in risk management, perceiving it as
a cost (with limited tangible benefits) and an outcome of an overly risk averse society
currently. If this was the case, risk management growth would stabilise (or even decline).
And it might go the way of other management ‘fads’ such as TQM or even the Just-In-Time
approach to logistics and inventory which went through a phase of popularity, before waning
or being overtaken by other preferred models. Notably, a KPMG report of 2005 suggests:
“…nearly half of our survey respondents believed that their organisations’ risk management
strategies were not well aligned with business goals, suggests that the practice of strategic
risk management has yet to be fully integrated into many organisations.” 1
Although some three years old, this does suggest that integration and acceptance of risk
management still has some way to go. The antecedents and possible future for risk
management is summarised in the following exhibit illustrates this evolution.
1 KPMG, Strategic Risk Management Survey, 2005. (sample size n=80 senior risk managers from Top 200 ASX / NZXS
companies).
Issues in Risk Management… continued
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Past: A Function- Anyone able to do role;- No qualifications required;- Strong Finance / insurance focus;- Ad hoc approach;- Non-strategic;- Limited resourcing.
1990s Now
Today: A profession- Qualifications / experience often required;- Gaining credibility;- Emphasis on finance remains;- Still viewed as a cost (rather than a benefit).- Hard to sell to management.
Future
Drivers
Growing profession- Qualifications mandatory- Integrated into core business - Senior management support- Part of business KPIs
Growing profession- Qualifications mandatory- Integrated into core business - Senior management support- Part of business KPIs
Stabilisation - Remains reactive- Restricted to financial /Loss focus- RM treated as a phase- Viewed as a cost / burden
Stabilisation - Remains reactive- Restricted to financial /Loss focus- RM treated as a phase- Viewed as a cost / burden
Growth
Stabilisation or Decline?
Continued growth: “A Profession”
FutureBased on secondary data and the interviews, we would predict further growth. We do not believe that RM is a fad and instead will continue to be integrated into business processes. This is discussed further on the following page.
Low profile: “Function”
- Terrorism;- Corporate Failures;
- Increased Litigation;
- Etc.
Issues in Risk Management… continued
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The Future for Risk Management: The model on the previous page suggests that risk
management may continue to grow or potentially stabilise / decline. Chant Link believes that it is
unlikely to stabilise / decline and will instead continue to grow. There are several reasons for this
conclusion:
The drivers of growth are likely to remain: The factors that have led to the growth in risk
management are predicted to remain intact. For example, it would be unlikely that corporate
failures will disappear (and therefore risk management processes to deal with this will
continue to develop). In addition, it seems inevitable that new risks will develop for which
risk management strategies will be required, such as environmental change, terrorism etc.
Therefore it would seem reasonable to predict continued growth in risk management given
the drivers.
Integrated into business processes: A further factor likely to drive continued growth in
risk management is that it has become (and will continue to become) integrated across all
facets of business processes (and all industry sectors). For this to occur it has necessitated
a high level of organisation-wide commitment which suggests a high level of perceived
importance and a reduced likelihood of ‘unwinding’ risk management.
Issues in Risk Management… continued
27 Chant Link & Associates: 3148 Master of Risk Management Report
The Future for Risk Management, continued…
Regulatory Commitment: Another factor that will continue to see risk management grow is
government and regulatory commitment to the area. Through organisations such as
Standards Australia, the Australian Stock Exchange (ASX) and even the Risk Management
Institution of Australasia, the likelihood of further development (i.e. further evolution of
standards, greater government adoption, integration with law etc) seems assured. For
example, the ASX in its document Principles of Good Corporate Governance and Best
Practice Recommendations, has as Principle 7: Recognise and Manage Risk.
In summary, whilst it is possible that risk management as a discipline may stabilise or not be
adopted by some sections of industry, this seems unlikely given its growth to date and that the
causes of the growth are likely to remain. Consequently, we would predict further growth and
integration of risk intra- and inter-business, though as might be expected, in some industries the
take-up is likely to be slower.
This augurs well for Monash, since with growth and complexity comes a need for education in
this area.
Issues in Risk Management… continued
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Secondary Data Analysis: The primary data gathering has led to the development of the model
on an earlier slide. In addition, Chant Link & Associates undertook a top-line analysis of
secondary data on risk management aimed at confirming the primary data and identifying trends
in risk management.
Employment trends: Based on figures including membership of RMIA (around 2,000) and
the monthly circulation of Risk Management Magazine (has a circulation of around 10,000)
as well as other data, we estimate that the number of people employed in roles directly
related to risk management in Australia to be around 7,000. There is little data available on
employment trends in this area, though anecdotally, there appears to be strong growth and
probably around 5% per annum.
Continued integration of risk: Much of the literature available suggests that risk
management as a profession is in high demand and becoming more integrated within
business practices, which supports the primary data from this report.
Trends in risk: One area of growth in risk appears to be in the area of reputational risk
management. A PWC study of 2004 study found that banks considered reputational risk the
greatest threat to their market value. However, risk was clearly dominated by operational
and financial risk.
Secondary Data on Risk Management
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Education Trends
Main Findings:
Education Provider Awareness and Positioning
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Education Provider Awareness and PositioningGrowth in risk management education providers: Participants (particularly alumni) noted that
at the time of the MRM’s introduction in 2002, there were limited risk management alternatives.
Alumni were also unaware of other universities that offered risk management study by block
mode at that time.
Mixed levels of Awareness: Awareness of other risk management education providers wase
mixed, even amongst industry leaders. The most commonly mentioned providers were Monash,
the University of NSW, and Griffith University. Many of the current student participants had only
investigated the Monash course, and a number still believed that this was the only course
available.
“I looked at ANU and a course in international economics but decided on Monash because it
seemed to be the only one offering a Masters in Risk Management.”
Provider positioning: The following comments were made about the risk management
education providers mentioned:
University of NSW: Had its genesis in the OH&S area and specifically health and still had a
a positioning in this area. It was quite well regarded, particularly by industry leaders.
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Griffith University: There appeared to be some confusion amongst participants about
Griffith’s focus. Some viewed this as an OH&S focused course, while on the industry
leaders (who worked in the Commonwealth Government) stated that it was known as a high
quality degree with a public sector focus. Those that were aware of Griffith’s risk
management offer (only about one quarter of the sample) believed it was well regarded.
Swinburne university: The risk management course was part of the engineering faculty,
and had a strong engineering focus (indeed, some viewed it as too technical).
“I completed one unit at Swinburne. It was terrible! All we did for the whole course was go
into a tutorial room with a person from industry and each week he would sit down and say
‘OK, who has a story for today?’, then we would proceed to listen to his or other peoples
stories… We learnt nothing, and I told them at the end of the course that it was terrible.”
Macquarie University: This course was biased towards finance and accounting, and had
the greatest appeal to those who worked within financial services.
RMIT: Very few participants were aware of the RMIT course, but those that were thought it
had a finance and accounting focus.
Education Provider Awareness and Positioning
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Other universities: A number of other universities and TAFEs offered risk management as
electives as part of different degrees (such as finance & accounting, MBAs, etc …). One
participant spoke highly of Victoria University’s environmental sustainable risk management
course offered as part of the summer school.
Monash University: In general, Monash was perceived to have an exceptional reputation
and was generally viewed as an industry leader. Participants made the following
observations about its positioning:
□ One of the first providers of a MRM in the market, although some participants
wondered whether Monash had really capitalised on this position.
“Monash hasn’t fully capitalised on its ‘first-horse-out-of-the-gate’ advantage. I think it
could improve relationships with the Risk Management Association.”
□ Supported by industry (such as the Risk Management Institution of
Australia), although some industry leaders believed that this relationship had
weakened since the MRM’s reception.
“ … well, RMIA’s predecessor actually put money into the [Monash] course when it
was starting up.”
Education Provider Awareness and Positioning
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Monash University … continued
□ Most participants were extremely positive about Michael Vincent. Many argued that
Michael was a drawcard for the course.
“Michael is an amazing mind. If he were to leave Monash University, that would be an
enormous loss to the University – his followers would follow Michael. Michael’s forward
thinking matches academics and professors I talk to – he is strong, practical, broad
and lateral thinker”
□ Some participants felt that Monash’s MRM had a finance and accounting positioning,
and that this was not ideal.
“I have spoken with a number of people who have considered [Monash’s MRM] course
and then decided against it because of the Accounting and Finance focus. In fact I
know of people who have started the course and then dropped it because they do not
like that focus.”
Further comments on Monash risk management appear later in this report under specific
reactions.
Education Provider Awareness and Positioning
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Drivers for Study
Main Findings:
Drivers of Study
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Drivers of Risk Management StudyReasons for studying risk management varied between students with no industry experience
(industry entrants) and those currently employed in a risk management capacity (industry
members).
Industry entrants: Most of the industry entrant participants had commenced the MRM not long
after completing their undergraduate degree. Industry entrants often stated that they needed a
postgraduate qualification to increase their chances of employment in a well-paying and
responsible role, although some specifically wanted to move into a risk management role at the
advice of family, friends or undergraduate lectures. Their reasons for choosing to study an MRM
are summarised in the following exhibit.
Industry Entrants
1. Accidental discovery: Had discovered a risk management course by chance and thought it looked “interesting” or “challenging”.
2. Broad appeal and job prospects: Risk management would apply to many different industries & countries, thus had strong appeal to prospective employers.
3. Encouragement from others: managers, friends who are MRM alumni, undergraduate lecturers or family.
4. Desire for a ‘unique’ career: Considered a ‘new’ industry and probably had skills shortages resulting in high demand for suitably qualified people.
Industry Entrants
1. Accidental discovery: Had discovered a risk management course by chance and thought it looked “interesting” or “challenging”.
2. Broad appeal and job prospects: Risk management would apply to many different industries & countries, thus had strong appeal to prospective employers.
3. Encouragement from others: managers, friends who are MRM alumni, undergraduate lecturers or family.
4. Desire for a ‘unique’ career: Considered a ‘new’ industry and probably had skills shortages resulting in high demand for suitably qualified people.
36 Chant Link & Associates: 3148 Master of Risk Management Report
Drivers of Risk Management Study … continued
Industry entrant quotations:
“I was looking at finance [at Monash], and I just saw risk management there … it looked
interesting …”
“… finance or risk management … it’s not just limiting you to Australia, it has good scope outside
of Australia, in the US, in the UK, everywhere.”
“Risk Management is definitely a growth area. It is still developing in my country but knowing that
there is work in this area motivated me to study.” [Current International Student]
“I had no idea what risk management was about. I was told it would differentiate me and make
me more employable. Thailand has to implement Basel II and I knew that because of this there
would be lots of jobs available in risk management.”
“I didn’t want to learn the typical things.”
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Drivers of Risk Management Study … continued
Industry Members
1. Broaden or enhance skills: As risk management methodology matured, participants felt a need to increase their own skills (or perhaps develop in new areas in order to change employers).
2. Enhance credibility: Having ‘fallen’ into risk management, some wanted to lend more credibility to their expertise.
3. Differentiate from colleagues and competitors: The number of employees increased inline with the industry’s profile, thus it became more important to standout.
4. Career progression: Qualifications were used for self promotion or as a stepping point to change organisations.
Industry Members
1. Broaden or enhance skills: As risk management methodology matured, participants felt a need to increase their own skills (or perhaps develop in new areas in order to change employers).
2. Enhance credibility: Having ‘fallen’ into risk management, some wanted to lend more credibility to their expertise.
3. Differentiate from colleagues and competitors: The number of employees increased inline with the industry’s profile, thus it became more important to standout.
4. Career progression: Qualifications were used for self promotion or as a stepping point to change organisations.
Industry members: Those already in the industry generally had an undergraduate qualification
that was unrelated to risk management, and wanted to upgrade their skills and qualifications.
Some participants were risk managers who had recently taken roles in different industry sectors
(e.g. they had been the risk manager within the health sector, and were now employed as a risk
manager in banking and finance). The drivers for undertaking risk management study for these
people included:
38 Chant Link & Associates: 3148 Master of Risk Management Report
Drivers of Risk Management Study … continued
Industry member quotations:
“… that was going to be a way to show people that not only do I have the experience in this
area, but I have a piece of paper that shows that I’m good at it. All these things are tickets to the
game, you prove yourself later.”
[Alumni and Industry Leader]
“One of the reasons I have MRM (Monash) on my business card is to increase the awareness
among people I am in contact with. Also it’s an important differentiator for my company, there is a
similar company in Melbourne who decided to appoint a risk manager. Rather than advertise or
find someone with experience, they just appointed a bit of an ‘odds and end’ person to the role. “
[Alumni, Racing Industry]
39 Chant Link & Associates: 3148 Master of Risk Management Report
Course Content
Main Findings:
Attitudes to Course Overall
40 Chant Link & Associates: 3148 Master of Risk Management Report
Attitudes to Course Overall Generally positive: Taken overall, most regarded the mix of units to be appropriate and to cover
the key issues in risk management. There were a number of comments that the course tended to
over-emphasise insurance and finance and used, in some cases, outdated examples. Risk
management was a fast moving field thus it was important that material was kept up to date.
“I really liked my course and people who taught me…”
“… the whole course, not individual subjects, looked to me to be spot on, pretty much up the ally
of the sort of thing you’d need to know to be competent in risk management.”
“I have had a great time in the Masters of Risk Management course. I found it stimulating,
creative, and motivating - especially when compared with my undergraduate study.”
Drivers of positive attitudes: There were a range of reasons as to why the Monash MRM was
well regarded. These included:
High quality and uniqueness: Many participants felt that the Monash MRM still maintained
a unique position as one of the few providers which provided a high quality risk
management qualification that was not too industry specific (e.g. other providers had a
strong finance or OH&S focus), although other participants suggested that this could be
broadened further.
“I think Monash is a notch or two above the others.”
41 Chant Link & Associates: 3148 Master of Risk Management Report
Attitudes to Course Overall … continued
Drivers of positive attitudes… continued
One of the few to offer block mode: As might be expected, block mode appealed to
students in full time employment, and for many, this had been a major drawcard to study at
Monash. Block mode both provided an opportunity for full time workers to study (where they
would not able to attend regular lectures, particularly during business hours), and also
provided an opportunity for students to meet others working in different industries.
“I really enjoyed the ability to be able to meet and mingle with people who had worked in
industry before – this was great for me because I have not had any industry experience,
coming straight from undergraduate studies. I really tried to associate with these students
and learn as much as possible.”
Highly regarded lecturers and staff: The MRM had a number of excellent lecturers, who
were particularly good at engaging their students.
“ … it may just be his [the lecturer’s] style, but he was treating them [the students] like they
were just sitting around having a conversation, and learning, and putting their bits and
pieces in and contributing that way. What a great way to do things.”
“The staff and the facilities that we had access to at Monash were all great… in particular
the staff were always approachable and willing to help out with the most minor queries.”
42 Chant Link & Associates: 3148 Master of Risk Management Report
Attitudes to Course Overall … continued
Drivers of positive attitudes… continued
Broad offering: Multi-disciplinary risk management was an ideal model, as it provided
higher value to the corporate world as well as increased employment opportunities for post
graduates.
“My knowledge was narrow and the course gave me a good overview of risk. My knowledge
was in credit risk and so one of the core subjects changed my paradigm and introduced me
to general risk principles.” [Current International Student]
“ … it needs to be [multi-disciplinary], for all sorts of reasons. 1) for the longevity of the
course from Monash’s point of view, and 2) for the needs of the real world.”
43 Chant Link & Associates: 3148 Master of Risk Management Report
Attitudes to Course Overall … continued
MRM Detractors: A number of participants had encountered problems with the MRM, and some
of these students had been sufficiently dissatisfied that they either stopped at the Graduate
Diploma level or even without a qualification in one instance.
Insufficiently advanced, little specialisation offered:
“A qualification is important to gain a specialised knowledge in a particular area – especially
at Masters level. One thing I would say about the Monash course is that it was very general
and covered a broad range of topics at a very basic level; I would have liked to be able to
specialise and go into much more detail in a variety of topics. It would be good if you could
specialise in an area of risk management, such as business, law, or finance…”
Too much emphasis on finance & insurance: A number of the alumni reported that the
course was too oriented on finance and insurance, and thus missed some key areas such
as business continuity and governance.
“ … it was bordering on being too financial services centric, but then again, that [industry] is
a big employer of risk management people. But risk management now … is not only in the
financial services arena that that stuff crops up.”
44 Chant Link & Associates: 3148 Master of Risk Management Report
Attitudes to Course Overall … continued
MRM detractors … continued
Variable lecturer quality: Some lecturers were said to have poor presentation skills and
were slow to respond to student queries about courses and which electives to choose. A
number of alumni received little or no feedback on projects from some lecturers, although it
seems likely that this has improved more recently, as no current students commented on
this problem.
“ … and there was very little scope for people to contribute their experiences in how things
actually work. It was as if they were teaching first year undergrads, and that just got up my
nose … they had no people skills.”
“I rang the lecturer to seek some assistance … and he basically said ‘it’s all there, go away.”
“I thought they were not very good at teaching, I thought they were not very good at
listening to the questions that people asked, they weren’t very good at answering …”
Incorrect standards used?: Some believed that the online course brochure referred to an
old Australian standard, and some of the alumni believed that there was too much focus on
the American risk management standards.
“… there was absolutely no acknowledgement of the Australian Standards in the subjects I
did …”
45 Chant Link & Associates: 3148 Master of Risk Management Report
Attitudes to Course Overall … continued
MRM detractors… continued
Poor administrative support: The MRM was sometimes let down by poor administrative
support from Monash.
Student cohort: Some believed that there were too many students with insufficient industry
experience. This was particularly problematic in the more advanced core subjects which
resulted in an inability of these people to contribute.
“ … a few of my friends … had come from the IT background. It makes it difficult for them,
and it’s not fair to put some students in our risk management [course] coming from an IT
background … because information technology and risk management are completely
different.”
Could be marketed better: Some participants noted that the MRM was not well known,
and thought that while the course was likely to have strong appeal to both undergraduates
and those already working in risk management roles, these people were largely unaware of
the course.
46 Chant Link & Associates: 3148 Master of Risk Management Report
Attitudes to Course Overall … continued
MRM detractors… continued
Electives lacking structure: Although almost all participants were positive about the ability
to select electives from different faculties, some had experienced difficulty with obtaining
advice on the most appropriate electives, and others questioned the validity of the electives
chosen by the their fellow students (it was suggested these were used to generate high
marks rather than risk management expertise). This resulted in a concern that the MRM
would lose credibility or be perceived as too broad in content by potential employers.
“I think that there is a trap for some people to choose electives that are seen as easy pass
courses though – so it might be best if the electives were tailored to each person’s particular
specialised area of interest.”
“It seems that they [course supervisors] don’t really know anything [about which subjects to
choose] … But we need guidance and advice on what subjects to take – what areas are
more / less popular in practice and what will give us jobs…”
47 Chant Link & Associates: 3148 Master of Risk Management Report
Attitudes to Course Overall … continued
MRM detractors… continued
Too expensive: Some international students believed that Monash was more expensive
than other Australian universities. These participants felt that the course did not always
provide value for money, particularly relative to perceived weaknesses in administrative
support and advice on electives.
“ … I find that fees are comparatively very high. It’s not just risk management, it’s all of
Monash, each and every unit, it’s very expensive in comparison to other universities.”
Relationships with Industry could be improved: Some of the industry leaders were
concerned that the MRM’s previously strong relationship with industry may be deteriorating.
While they believed that Michael Vincent was still highly regarded by the industry, they were
concerned that more could be done to foster links with industry.
48 Chant Link & Associates: 3148 Master of Risk Management Report
MRM detractors… continued
International - domestic student mix: Whilst not a major issue it was clear that some
found the integration of local and international students problematic. Problems around a
lack of industry experience, and class contribution for international students were nominated
as points of concern for local students.
“The local people only make up 1/3 of the class – if this is a trend then it shows… but this
would be more a trend of the University then the course itself.”
“I think the university on the one hand accepts a high number of international students
because they pay high fees, however on the other hand they often have a low level of
industry experience – this job is about providing fearless advice, challenging the norm…
without experience how can this be done?”
“I really enjoyed the ability to be able to meet and mingle with people who had worked in
industry before – this was great for me because I have not had any industry experience,
coming straight from undergraduate studies. I really tried to associate with these students
and learn as much as possible.” (International student)
Attitudes to Course Overall … continued
49 Chant Link & Associates: 3148 Master of Risk Management Report
Entry Standards: Student evaluations of postgraduate study is often influenced by the quality of
the student cohort. To the extent that the student cohort has varying levels of work and study
experience this can add or detract from the overall experience. Therefore, entry standards play a
major role in determining the overall student experience since entry standards set minimum
levels of work and study experience. It is difficult for Chant Link to advise Monash on suitable
entry standards since this is a strategic decision impacted upon by factors unknown to Chant
Link, such as enrolment predictions relative to standards that are set. However, we make the
following observations:
Work experience +/- undergraduate degree: Work experience impacts ability to contribute
and drives satisfaction, therefore the emphasis on entry standards should be on work
experience. The downside of this approach is that it will be a barrier to some international
students (especially those continuing directly on from undergraduate study with no
experience). The extension of this approach is to accept students with work experience and
no undergraduate qualification, which we would view as acceptable especially for some
career public servants who have no undergraduate experience. The caveat to this argument
would be to require a possible ‘bridging’ unit to be undertaken for those with no
undergraduate qualification.
Attitudes to Course Overall … continued
50 Chant Link & Associates: 3148 Master of Risk Management Report
Entry Standards, continued…
Pass degree only with work experience: This would be acceptable since work experience
is important and it seems unlikely that a pass only qualification would dilute prestige of the
course but would also ensure that an undergraduate standard is applied.
No work experience + credit average: Whilst it gives the appearance of a more ‘exclusive’
entry level it is less desirable, since it will encourage younger students to continue directly
from undergraduate study with little familiarity with risk as a discipline and no work
experience. This detracts from the student experience which ultimately leads to lower
satisfaction and reputation.
Communicating Entry points: The final comment we make on this issue is that we believe,
based on the interviews, it is desirable to communicate the entry point for risk management as
being at a range of levels (i.e. Executive Certificate or Graduate Certificate or Masters level
rather than the alternative which is to only permit enrolment at Masters level and if one exits
early then it is with an Executive Certificate or Graduate Certificate). This is because a Masters
only entry point is potentially intimidating and off-putting and may exclude some of the market
who want a ‘toe-in-the-water’ experience rather than committing to the Masters program intitally.
Attitudes to Course Overall … continued
51 Chant Link & Associates: 3148 Master of Risk Management Report
Reactions to Individual UnitsPast students and current students made some comments on specific units. The following pages
summarise the reactions to specific units:
AFF 5011 Issues in risk management: Overall, participants felt this unit was acceptable and that it should
be kept. However, a small group of respondents felt that this subject should at least be redesigned, if not
removed (or at least, only required for students with limited industry knowledge).
Strengths: This unit was generally well received,
because:
Most participants found it informative, and felt it
covered important material for the risk
management profession;
Interestingly, at least one international student
had a somewhat different view and perceived it
as requiring self direction.
“With this unit you have to learn by yourself with little
direction. You have to try hard and you don’t want to
be lazy.”
Weaknesses: There was a small group of
participants who questioned the value of this unit,
because:
It was not sufficiently advanced, and was
possibly better suited to students with lower
levels of knowledge and experience. These
respondents questioned the relevancy of this
unit at the postgraduate level;
Too much time was invested into the
introduction of the unit;
A few alumni (those that had completed the
course some time ago) felt that this unit lacked
structure.
52 Chant Link & Associates: 3148 Master of Risk Management Report
Reactions to Individual Units … continued
AFF 5021 Case studies in risk management: This unit received some very positive comments, and was
considered by many participants to be one of the greatest attractions for the course
Strengths: Participants were generally positive
about this unit, because it:
Provided tangible examples which students
could relate to and learn from;
Provided an opportunity towards the end of the
course to apply the theory covered in previous
units;
Enabled students to focus in an area relevant to
their own industry and/or job role;
The unit was challenging and interesting for
many students.
“ … because it [AF5021] is now aiming something
specific to the student’s role … and that’s great!”
“I loved this unit it was very interesting.”
Weaknesses: While generally positive about the
unit, some participants raised the following
concerns:
Students with limited risk experience could not
contribute as much in this unit compared with
those who had a risk management
background;
Some material was outdated, or not as
relevant to the rest of the class as to those
students presenting it;
The unit was too unstructured for some
participants, possibly because the other
students lacked the necessary industry
experience to contribute adequately.
53 Chant Link & Associates: 3148 Master of Risk Management Report
Reactions to Individual Units … continued
AFF 5021 Case studies in risk management … continued:
Strengths … continued:
“I think the way they’re doing it is very good, you’re
all working in different areas, so you should be able
to pick a topic you want to work on … that was very
good … but you should have industry experience
before you do it.””
Weaknesses … continued:
Some participants felt it was important to
ensure that the subject was one of the final
subjects to be completed, to ensure that
students had sufficient theoretical knowledge
to be able to contribute;
Some participants who had completed the unit
some time ago remarked that it had taken a
long time to receive feedback on their
assignment.
Course note quality was inconsistent and
sometimes poorly presented (lacked Monash
branding).
“The last two subjects needed more structure …
they were so dependent on the participants … you
need to make sure that the relevant areas are
covered..”
54 Chant Link & Associates: 3148 Master of Risk Management Report
Reactions to Individual Units … continued
AFF 5031 Principles of risk transfer: This unit that was generally well received but many participants
viewed it as financially orientated. Insurance Law was perceived to share similarities, if harder, and some
even commented about the possible merger of the two units.
Strengths: Most believed that this unit was
acceptable, and particularly liked:
That it broadened their understanding of risk
management;
At least one industry leader believed that it was
important for graduates to have a sound
understanding of risk transfer;.
“This was a great unit and introduced me to a new
way of thinking.”
Weaknesses: There were some participants who
were less supportive of this unit, who raised the
following issues:
The unit was somewhat outdated, particularly
as it referred to risk transfer rather than risk
sharing;
Some participants felt that this unit (and
possibly the course overall) had too much
emphasis on insurance.
“ … this needs to be brought up to date with all the
new techniques … it’s no longer cutting edge, it’s
looking like an FJ Holden!”
55 Chant Link & Associates: 3148 Master of Risk Management Report
Reactions to Individual Units … continued
BTX 5031 Insurance law: Many liked this unit and made favourable comments about the lecturer who
offered practical insights. It was possibly harder for some international students and also less relevance for
those who were less insurance oriented.
Strengths: Participants were generally positive
about this unit, and noted that:
The lecturer was well respected and had
practical experience (he had worked for ANZ)
and was able to provide valuable insights into
the banking industry;
At least one industry leader believed that it was
important for graduates to have a sound
understanding of Insurance Law, and that this
was one of the most important units (so should
remain a core subject);
Provided good grounding for communication
and analytical skills.
“There is no exam and it is assignment based. It is
good for written and analytical skills but maybe
difficult for international students.”
Weaknesses: While generally positive about the
unit, some participants raised the following
concerns:
Some participants felt that this unit (and
indeed, the course overall) had too much
emphasis on insurance;
The unit might be too difficult for international
students.
“… if you’re not interested in insurance then it would
have less relevance to you.”
56 Chant Link & Associates: 3148 Master of Risk Management Report
Reactions to Individual Units … continued
AFF 9020 Introduction to risk principles: Probably regarded as one of the easier, though important, units
which could have been made more challenging. Two participants suggested that it could be condensed to
less than one semester, and one of the industry leaders emphasised that it needed to be brought up to date
with the International Standards, to be released in 18 months.
Strengths: Although the unit was relatively basic,
most participants acknowledged that it provided an
important foundation to the rest of the course.
“Important first subject that gives you a good
grounding. Sets the framework for the course.”
Weaknesses: While generally positive about the
unit, some participants raised the following
concerns:
Could be shorter;
A few participants felt that this unit was too
basic to be a core unit in a postgraduate
degree;
Two industry leaders felt that it referred to an
outdated standard.
57 Chant Link & Associates: 3148 Master of Risk Management Report
Reactions to Individual Units … continued
AFF 9770 Risk financing and treasury management: There was a range of opinions on this subject.
Some found it difficult, most relevant for people who were interested in or involved with finance risk. Some
thought it was excellent, whilst others requested greater depth on market and credit risk, such as related to
anti-money laundering.
Strengths: Many participants spoke very highly of
this unit (particularly those within the banking and
finance industries).
“The Finance and Treasury one was fantastic …
really interesting and not ‘airy-fairy’ at all.”
Weaknesses: Participants raised the following
concerns with this unit:
Perhaps too financially oriented, and only
relevant interested or working in the finance
sector;
One or two of the past students, having
completed this unit some years ago,
commented that the classes (in block mode)
were too big.
Should include more credit and market risk
material.
58 Chant Link & Associates: 3148 Master of Risk Management Report
Reactions to Individual Units … continued
BTX 9760 Risk control and the law: This subject did not receive much comment although some found
learning about liability issues to be of interest. One international student thought that it was locally oriented
and therefore had reduced value from an international student perspective.
Strengths: A few of the participants were quite
enthusiastic about this unit, because it:
Provided an opportunity to learn about liability
issues;
Was interesting and valuable course material;
Was a well presented unit;
Had high calibre of guest lecturers who
presented.
Weaknesses: The following concerns were raised:
Was insufficiently advanced (the unit was more
at the undergraduate level);
Too orientated towards Australian issues;
One participant noted that the unit appeared to
lack a coordinator (the guest lecturers were
good, but there was no one for the students to
follow-up with).
“This was less relevant to international students.
Some wondered why they had to do this. I would
give this unit 6/10.”
“ … we had a different lecturer for each session so
we never established a relationship with one
lecturer.”
59 Chant Link & Associates: 3148 Master of Risk Management Report
Reactions to Individual Units … continued
ETX 9520 Quantitative methods for risk analysis: This unit received the most comment of all. Most found
it difficult and were critical for a range for reasons, however there were some who were quite positive about
what had been learned at its conclusion.
Strengths: Although only one participant was
strongly supportive of the unit as it was, a number
believed that it was important that the course at least
covered quantitative methods, albeit in perhaps a
different way to its current format.
Weaknesses: There were a range of opinions
expressed:
Difficult: Many commented that this was a
difficult unit and it was thought that some had
failed or at least struggled and considered
dropping out. It was perceived to require some
statistical grounding that was lacking for some.
Further, some thought that they could have
been better informed about the need for a base
level of knowledge (both regarding statistics
and MS Excel) prior to the commencement of
the unit;
Lack of support: Related to the above point a
small number felt that support was lacking and
more could be done to assist struggling
students;
60 Chant Link & Associates: 3148 Master of Risk Management Report
Reactions to Individual Units … continued
ETX 9520 Quantitative methods for risk analysis … continued:
Weaknesses … continued:
Questions over teaching style: An over reliance on PowerPoint and handouts were mentioned by
some;
Questions about its value: There were a small minority who wondered whether this unit should be
abandoned. Whilst not stated explicitly one of the reasons for this was simply that it was difficult and
some would simply liked to have avoided it. However, there were some more ‘valid’ reasons for
considering not running this unit, as one statistical subject was considered to be not enough: To be
truly of value more needed to be taught, not less. A single statistical subject provided only limited
value to risk management students for two reasons: 1) Few risk management disciplines were said to
require a deep knowledge of statistics and 2) even if statistical knowledge was required, a single unit
was not sufficient.
“I thought it was death by PowerPoint … and the handouts for this lecture were poor.”
“You’d have to be a statistician to do this course. Also, the Lecturer was difficult. We have written
complaints to the Dean.”
61 Chant Link & Associates: 3148 Master of Risk Management Report
Reactions to Possible Course Structure ChangeIncreased electives / reduced core units: Participants were asked to give their reactions to a
possible reduction in core units from eight to six and a corresponding increase in electives from
four to six. There were mixed reactions to this concept from the very positive to the very
negative.
Positive reactions: Those that liked the concept typically argued that it had the benefit of
allowing students to tailor their course to their areas of expertise and interest. This allowed
for a customised degree which held greater appeal than the traditional, less flexible offer.
For example, if a student was specifically interested in risk management in the health area
they could potentially pick up subjects from the faculty of medicine. A customised degree
allowed students to pick areas of personal and professional interest, which could make
them more employable.
“This is brilliant but will probably cost more. It is good because it offers greater choice
which is important in an area as diverse as risk management. It would be great to draw
upon other faculties units.”
62 Chant Link & Associates: 3148 Master of Risk Management Report
Reactions to Possible Course Structure ChangeReactions to increased electives / reduced core units, continued…
Positive reactions, continued…
“Universities are about teaching and research and this drives quality and quality attracts
students.”
“I would have loved to select some MBA courses as electives. It’s strange actually, because
I think that you can do a MBA/ MRM double degree but you can not choose electives from
the MBA.”
“It makes sense to increase the electives offered, since the Australian Standard AS4360
has elements across many areas.”
63 Chant Link & Associates: 3148 Master of Risk Management Report
Reactions to Possible Course Structure ChangeReactions to increased electives / reduced core units, continued…
Negative reactions: The most common concern with the concept was that it would lead to
less well trained risk managers (because ‘the basics’ have been reduced from eight to six).
A further concern was that it would not appeal to international students, since international
students sought greater structure, not less. Related to this, some wondered about the
appeal of this idea for those who were not really sure of their specific interests or career
orientation. For such people, picking appropriate electives would be problematic. Also,
some wondered about the logistics and time-table management of a course with a greater
number of electives from other faculties / disciplines.
“I don’t think this is a good idea. It would be easy for international students to get lost.
Foreign students prefer guidance and the more electives you have the less appealing it will
be. International students are usually younger and less experienced and so it will not
appeal. Local students would probably like it. With six electives I would need even more
guidance.”
“If a smaller number of core units are required then it is like saying that you can learn the
basics with less units. I doubt you can teach the basics in six units and instead need eight. It
also lowers the value.”
64 Chant Link & Associates: 3148 Master of Risk Management Report
Reactions to Possible Course Structure ChangeReactions to increased electives / reduced core units, continued…
Negative reactions, continued…
“It may not appeal to international students as it requires greater self-direction, which some
are not good at.”
“Unfortunately, flexibility means having to change the timetable.”
“How do you organise six and six to give a solid practical knowledge in risk?”
“If people just choose six easy electives, then in reality they would only have half a Masters
degree in risk management – and that would be no good for developing a strong position in
industry for MRM graduates. Graduates need to be highly skilled in their specialised area.”
“I really think that changing to have 6 electives of your choice will just deplete the quality of
the course and graduates unless the electives are risk related. If you do 6 units in risk
management and 6 in History, are you a risk manager or a historian? And what benefit are
your electives going to be to your risk management role?”
The table on the following page summarises the perceived advantages and disadvantages of the
eight versus six core unit offers:
65 Chant Link & Associates: 3148 Master of Risk Management Report
PROS CONS
Eight core :
four
electives
(current)
Provides thorough grounding in risk
management;
More structured;
Preferred by International Students;
Harder
Reduced ability to tailor course
Required to complete
unnecessary units;
Preferred by International
Students;
Lower appeal for domestic /
industry students.
Six core :
six electives
(proposed)
Greater flexibility;
More subjects to choose from;
Ability to study across multiple
faculties;
More tailored to individual needs (no
“unnecessary” subjects).
May miss out on important units;
Increased setup complexity;
Lower quality graduates (dilution
of risk knowledge)
Lower appeal for International
students or those who were
unclear about their career;
“Soft” option.
Reactions to Possible Course Structure Change
66 Chant Link & Associates: 3148 Master of Risk Management Report
Reactions to Possible Course Structure ChangeIssues associated with change:
Which units stay and which go?: The discussion around introducing more electives
prompted some to wonder which core units might be dropped. For some, quantitative
methods was an obvious candidate because it was considered difficult and of limited value
as a one-off statistical subject. Others made suggestions around possible unit mergers.
“I believe that insurance is part of the risk management process and believe it is important
to study the topic as part of a risk management degree. Consequently, it is important for risk
managers to know about the law relating to insurance. If it was determined that the number
of core units was to be reduced then I would suggest a merging of 'Insurance Law' and
'Principles of Risk Transfer' into a single subject.
“I would eliminate the subject 'Quantitative Methods for Risk Analysis' as I do not believe it
should be considered a core subject. This because all the other core subjects are very high
level and can be used in any organisation. Also, I believe a single 'statistic' subject provides
only a limited value to risk management students as few risk management work areas
require a knowledge of statistics. If a student requires statistics knowledge then I believe a
single subject would not assist them greatly.”
Further discussion about reactions to specific units appears earlier in the report.
67 Chant Link & Associates: 3148 Master of Risk Management Report
Reactions to Possible Course Structure ChangeIssues associated with change:
Requires some guidance / structure: If the concept was to be introduced most argued
that it required some guidance with respect to the appropriate mix of electives. Most thought
that it was not sufficient to leave the elective selections entirely up to the student and
instead most sought the ability to choose electives from a loosely arranged set of options.
For example, if a student was interested in risk management in health, then a
recommended set (or sets) of electives for this should be available. Likewise, if a student
came from an OH&S background then a set of electives suited to this should be proposed.
In this way, students would have the freedom to tailor their course within some structure.
“I would like to see suggestions and recommendations from Monash about choosing
electives. For example, Monash might say. ‘if you want to be strong in financial risk
management we recommend you do the following set of electives. Or if you are interested in
operational risk management then A, B, C and D are appropriate’. A bit more guidance
would help.”
68 Chant Link & Associates: 3148 Master of Risk Management Report
Reactions to Possible Course Structure ChangeIssues associated with change:
Vary the number of electives available according to experience: A further alternative
raised unprompted by some was that the number of electives available for selection could
vary based upon a students’ level of risk management experience. For example, an older
more experienced student with a risk background might be eligible for the six elective offer
whereas a less experienced student would only be able to undertake four electives.
“I believe that international students and students with less than 2 years work experience in
a risk management area should be required to undertake the MRM with 8 core units.
Students who have been working in the risk management field for 2 years or more could be
required to complete only 6 core units. This would leave them 6 'elective' units to specialise
their risk management knowledge.”
69 Chant Link & Associates: 3148 Master of Risk Management Report
Issues associated with change:
International and domestic student reactions differ: Across the sample, international
students were more likely to be negative towards the increased electives concept than local
students. Typically international students preferred a more structured model. Industry
leaders also thought that if the course did not appeal to international students there was a
real revenue risk. Conversely, if the increased electives held high appeal to domestic
students then not to offer this would be failing to meet the needs of domestic students.
What this illustrated was the broad issue of apparent differences in needs between local
and international student on a range of issues (not just the topic of the number of core
versus elective units offered):
□ International preferences: Face-to-face, directed study, structure, full-time,
weekdays, decreased electives;
□ Domestic preferences: Block-mode, weekend learning, interaction, unstructured,
increased electives.
Reactions to Possible Course Structure Change
70 Chant Link & Associates: 3148 Master of Risk Management Report
Changes and ImprovementsSuggested improvements: Participants made a range of suggestions as to how to improve the
risk management program. These can be broadly divided into three areas:
1. Course / unit related suggestions;
2. Administration;
3. Strategic considerations.
Each is explored in the following pages:
1. Course / unit related suggestions: There were a range of subject areas mentioned by
participants where it was thought that the course could provide greater emphasis. These
included:
Risk management for directors: A number of people commented that company
directors were often poorly trained and needed greater training in a range of areas
including board-related risks, governance and compliance.
“I think a unit on Director’s responsibilities perhaps run in conjunction with the AICD or
ASIC would be important. Director’s responsibilities could be emphasised more, since a
lot don’t know their duties and can’t read balance sheets. Liquidity and trading while
insolvent is a real risk.” [Industry Leader]
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Changes and Improvements…continued
1. Course / unit related suggestions…
Environmental and social responsibility risk: A new and growing area mentioned by a
small number related to environmental risk. The thinking here was that this would continue
to grow in importance and was not well understood by most. Further, many risk mangers
came from an accounting / commerce background and hence knew very little about this
area. Examples of possible content included risk on carbon trading / credits and managing
risk related to environmental disasters.
Project risk management: Project-based risk management was thought to be covered only
minimally in the current syllabus. Greater emphasis in this area was mentioned by a few.
“If you look a bit deeper into risk management jobs, nearly all are finance-based (banking
and insurance),… it tells me that there is that narrow view of risk management – and this
area in project risk management is not really covered…”
72 Chant Link & Associates: 3148 Master of Risk Management Report
1. Course / unit related suggestions…
‘Soft’ risk skills: A number of people commented that a newer (and probably neglected)
area of risk related to issues of staff retention, burnout avoidance and human capital
management. These were real risks and an area which required greater attention from
educators. For example, the costs to a firm associated with the departure of senior
management were significant and needed to be managed. This might mean including
electives in areas such as psychology and sociology.
“Risk management is a mix of science and art. We need to encourage a person to drive
change in an organisation to embrace risk and to protect against threats and grow
opportunities. This means good risk management to me.”
Changes and Improvements…continued
73 Chant Link & Associates: 3148 Master of Risk Management Report
1. Course / unit related suggestions…
Communicating risk management internally: Risk Managers needed to be taught how to
communicate effectively to senior management. There were two suggestions here:
□ Promoting the importance of risk management: Since some organisations still
perceived risk management as a cost not a benefit and did not fully understand the
area, it was suggested that risk managers needed to be better at selling themselves to
internal stakeholders, so that organisations better understood what it was and its
importance.
□ Communicating actual risk issues: Risk managers also needed to be taught how to
communicate their information to boards and senior management. Communication in
ordinary business language rather than risk management terminology was important:
“ … in my experience, people who are really good at ‘it if this fall’s over, the whole
organisation will fall over’ aren’t very good at convincing management up the line.
[Risk managers] need to give them something that they understand and that is
easy to understand for anyone involved in the [risk management] process.”
“ … one of the big things with risk management to me is being able to talk to the
people who don’t speak the language of the risk manager.”
Changes and Improvements…continued
74 Chant Link & Associates: 3148 Master of Risk Management Report
Changes and Improvements…continued
1. Course / unit related suggestions…
IT and Ecommerce: Ecommerce & IT risk management was cited as an absentee from the
course. Some thought that these issues were becoming more important with the growth of
the internet, innovation & technology and related securities issues.
“For example, as innovation changes the whole commerce world, what are the implication
for companies & commerce? What level of risk would that create for organisations &
corporates? Any identity frauds, financial frauds, competitive advantage risks…. None of
these were covered in the course and these are potentially really important issues around
the globe.”
75 Chant Link & Associates: 3148 Master of Risk Management Report
1. Course / unit related suggestions…
Auditors responsibilities: Another area for Monash to consider was in auditors
responsibilities. Some believed it was important for company directors and management
leaders to know how to evaluate an audit.
“Major audit companies are being hoodwinked by business. Train risk managers in audit
responsibilities to check and understand auditing.”
OH&S: Improved emphasis on risk management in OH&S was thought to be an
opportunity.
“I know it is covered in the risk management programs but is it being practiced and
understood?”
Risk management in organisational change: Another area the interviewee said was
worth greater course coverage was in business divestments, amalgamations, takeovers,
mergers and acquisitions. Managing risk in these areas required special skills.
Changes and improvements…continued
76 Chant Link & Associates: 3148 Master of Risk Management Report
1. Course / unit related suggestions…
Risk Management in Public Private Partnerships (PPPs): A small number of participants
who were involved in risk management in the government sector argued strongly for a unit
on PPPs. This was an area where there had been growth, coupled with high profile
problems—which made the area relevant and complex. PPPs were viewed as a way for
government to potentially minimise or transfer risk, but at the same time may not minimise
risk but instead change the nature of the risks. Consequently, some believed that it was an
area that was topical and relevant both to government and industry participants.
“If Monash was to offer detailed course content on PPPs that would attract students.
Governments have embraced PPPs as a risk aversion strategy, even though this may not
be explicitly stated, but it raises the question of how Governemnt manages risk of a third
party.”
Risk Management for those with government relationships: Arising from the suggestion
of a unit in PPPs, was the further idea of a broad unit on risk in government (which would
include PPP content). The concept here was that there were other risk issues in
government which would be relevant including, how to manage budgets and therefore PPP
education might simply be part of a larger risk-in-government unit.
Changes and improvements…continued
77 Chant Link & Associates: 3148 Master of Risk Management Report
2. Administration
Improve administration & student support: A number of participants commented
unprompted regarding the variable quality of the administration experience. There was a
general view that it was hard to get support, advice on unit selection and some course
materials (which were somewhat dated). Also, there was a lack of staff to make the lecture
material and notes available on the web quickly and to turn around requests quickly.
Changes and Improvements…continued
78 Chant Link & Associates: 3148 Master of Risk Management Report
3. Strategic considerations
The bigger risk picture: Many of the new unit suggestions had one theme in common:
broader-based risk management education. There were many comments made that risk
management is now a very broad area and integrated in business processes and that a
syllabus needs to reflect this. That is, whilst not ignoring its financial roots, it needed to
include other non-traditional areas.
“Some further detail on how risk management fits in the world and in business practice
would be helpful.”
“ … risk management isn’t only about financial services. It is not only about the quantum, it’s
about other things, [like] business continuity planning, what appear to be mundane sorts of
things that are so frightful if you get them wrong.”
Changes and Improvements…continued
79 Chant Link & Associates: 3148 Master of Risk Management Report
3. Strategic considerations
Further alignment with GSB: Related to the previous point about modifying the course to
encompass a broader range of areas, comes the suggestion to improve alignment with the
GSB. Many participants agreed very strongly that the MRM belonged with the GSB and not
the narrow confines of accounting and finance. One reason for this was that to leave the
MRM with accounting and finance might be off-putting to a new generation of risk mangers
who were not so focused in this area alone.
“The course should be definitely in the Graduate School because you need to have a
certain degree of experience to appreciate risk.”
Changes and Improvements…continued
80 Chant Link & Associates: 3148 Master of Risk Management Report
3. Strategic considerations
More guest lecturers should be used: It was common for participants to make very
favourable comments about sessional lecturers in the course. Where possible, more such
lecturers were sought, who were well known and / or worked in senior risk roles.
“ … industry leader and practitioners, people who can present. I’ve been to lectures where
they’ve had a guest lecturer, and all you wanted to do was … fall asleep. They may know
their stuff, but they can’t present that stuff in a meaningful way.”
“ … you can’t just talk to the slides, they have to be best practice practitioners and good
presenters.”
More marketing communications / better branding: Some argued for more promotion of
the course as a means of attracting greater students and also adding to the perceived
prestige of their qualifications. There was also the suggestion that the course could be
branded better. It was argued that risk management was a growth area but that there was
no pre-eminent educational brand for risk management. The GSB alignment may help in
this regard.
Changes and Improvements…continued
81 Chant Link & Associates: 3148 Master of Risk Management Report
3. Strategic considerations
An offer to industry: A major opportunity for Monash was perceived to be in taking
advantage of the well documented skills shortage and problems in staff retention. To this
some thought that Monash should work hard on forming relationships with industry and
offering risk management as a means of staff retention.
“Keeping staff is a huge issue and if an employer offered a relevant, paid-for Master of Risk
Management this would be good for the employee and employer.”
Changes and Improvements…continued
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3. Strategic considerations
Streams: A number of respondents suggested that a more formal ‘stream’ approach be
adopted. Whilst there was variation in terms of what would constitute appropriate streams,
the general view was that the introduction of three-four key streams for the risk
management program could be desirable. Suggestions included:□ Major in Finance (Economics);□ Major in Law (compliance and governance); and□ Major in social sciences.
“In the perfect world it would sit in the business faculty with four streams. These would be,
financial, organisation planning, functions / operations and compliance. I think risk
management is a sub-discipline of management overall.” [Industry Leader, Academic]
“It would have been nice to have an advanced stream that the more advanced students
could attend.” [Current Domestic Student]
Changes and Improvements…continued
83 Chant Link & Associates: 3148 Master of Risk Management Report
3. Strategic considerations…
Improved industry / government relationship: A common suggestion was to improve
relationships with industry and government. ASIC was given as one example, since ASIC
was closely involved in risk management. Course endorsement, relationships and
partnerships could be further fostered which would add credibility and quality to the course
and improve branding.
“I would be going to industry with two propositions. One, ensuring that senior mangers are
risk trained and emphasising the importance of this and two, encouraging employers to pay
for risk management education for staff as a means of retaining employees.”
“Monash should identify industries and tailor a course offer for these. For example, create
an offer for the defence industry or health sector, banking which included a couple of units
that specifically for these industries.”
Changes and Improvements…continued
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Background
Conclusions & Recommendations
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ConclusionsThe table below summarises the current market situation for risk management:
Growth:
Increased
importance;
Greater breadth of
coverage;
Perceived as a
profession not an
isolated discipline;
Increased importance
of qualifications;
Proactive approach to
risk management, not
reactive.
Driven by:
Corporate
collapses;
Litigation;
Economic
growth;
Risk aversion;
Regulatory
environment;
Personal liability
concerns.
Moderators:
Is it a phase /
fad?;
Perceived as
a cost not a
benefit;
Integration
not uniform
across
industries.
Outcomes.
Continued growth
predicted;
Greater intra- and
inter-corporate
integration;
Continued
broadening of
discipline to
include ‘non-
traditional areas’;
Greater value
placed on
accreditation and
qualifications in
RM.
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ConclusionsMonash MRM well positioned and regarded and likely to grow given the increasing
prominence of risk management: Participants predicted that risk management would continue
to grow in importance and so too would the value of qualifications in this area. Monash was well
positioned to take advantage of this since it was very well regarded. The table on the following
page summarises the major issues facing the Monash risk management program.
87 Chant Link & Associates: 3148 Master of Risk Management Report
Summary of Issues for Monash MRM:
Strengths Weaknesses Opportunities Threats
Reputation of Monash and
risk management course;
Quality of student
experience;
‘First-to-market’
advantages;
Excellent lecturers and
sessional staff;
Block mode and flexibility
of delivery;
Ability to leverage size of
Monash to offer tailored
electives;
Appropriate course content
and structure.
Variable
administration
experiences;
Too finance and
accounting focused;
Managing domestic
and international
student experience;
Gaps in unit offers
beyond accounting
and finance;
Lack of advice and
direction in unit
selection / careers;
Out-dated
materials.
Greater alignment with GSB
to avoid perceptions of narrow
(A&F) scope;
Increase breadth of units
offered that corresponds with
growth in breadth of
discipline;
Consider increase in electives
to six to accommodate
desired breadth and tailoring;
Improve industry links and
develop offers;
Likely growth in interest in risk
qualifications commensurate
with growth in the discipline.
Growth of
competitors—though
not currently an
issue;
Erosion of industry
links;
Decreased perceived
importance of risk
management to
organisations
(unlikely);
Move to six electives
may dilute perceived
risk management
grounding.
Conclusions
88 Chant Link & Associates: 3148 Master of Risk Management Report
Recommendations1. Broaden unit offering and reduce (perceived) emphasis on accounting and finance-related risk: Since the market
perceives risk management to have become more integrated with all aspects of business it follows that a university offer
should also reflect this. Monash was regarded as being quite focused on accounting and finance and whilst it should not
move away from this, it will be important to offer units in non-traditional risk areas as well. Examples could include:
□ Units related to risks for board members (i.e. governance, takeovers, compliance etc);
□ ‘Soft skills’ in risk (Arts-related);
□ IT and ecommerce risk;
□ Project management risk;
□ PPP / Government oriented risk;
□ Unit groupings tailored to specific industries.
Exactly, how this is structured is a strategic issue for Monash, but in order to achieve this it will be desirable to develop a
framework for new units, discussed next. Given that Chant Link is not highly familiar with unit content we cannot be too
definitive about the right approach however, we offer the following recommendations:
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Recommendations2. Restructure Syllabus Option 1: Eight core + Four electives and restructure as follows:
□ Drop Quantitative Methods due to low appeal and criticisms;
□ Amalgamate Issues in Risk Management and Case Studies in Risk Management into a single unit or keep both and
drop Risk Control and the Law (since this did not generate much enthusiasm);
□ Replace the two core units with two alternative units that better reflect the broad areas of interest to prospective
students. For example:
A ‘softer’ risk skills units which might incorporate promoting risk management to internal audiences, and;
A unit perhaps on ‘emerging risk’, which could cover growth areas such as reputational, environmental, PPPs and
other areas of risk.
□ For the four elective units, offer ‘streams’ related to disciplines and probably aligned to faculties. For example, provide
students with an array of pre-determined elective units for people in health or government etc.
The advantage with this approach is that is still provides the solid grounding in risk that students sought, would be less likely
to alienate international students and yet subtly re-orient the course to current market trends. It is a lower risk approach.
90 Chant Link & Associates: 3148 Master of Risk Management Report
Recommendations2. Restructure Syllabus (continued) Option 2: Six + Six and restructure as follows:
□ Drop Quantitative Methods due to low appeal and criticisms;
□ Amalgamate Issues in Risk Management and Case Studies in Risk Management into a single unit
or keep both and drop Risk Control and the Law (since this did not generate much enthusiasm);
□ For the six elective units, offer ‘streams’ related to disciplines and probably aligned to faculties.
For example, provide students with an array of pre-determined elective units for people in health
or government etc.
The advantage with this approach is that it allows the student to specialise much earlier in the area of
interest to them. It may dilute the perceived grounding in risk principles which is a risk that may alienate
international students. However, it would re-orient the course to current market trends. It is a slightly
higher risk approach.
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Recommendations3. Proceed with caution if electives are increased from four to six: The current structure
of four electives was well regarded and provided the right balance between sufficient
grounding in risk management and an opportunity to tailor. Whilst there were some who
were clearly interested in more electives, international students may not be attracted to
this. It may be worth considering an option for more experienced risk mangers to
undertake six electives should they choose and maintaining four electives for others.
4. Continue positioning with GSB: As an adjunct to the previous points we recommend
closer ties and links with the GSB which will emphasise that the course is positioned as a
part of overall business practice, not just a discipline of accounting and finance.
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Recommendations5. Offer unit selection and careers advice: An increase in electives or greater flexibility /
breadth of offer to undertake units outside of the GSB requires advice and support for
students. Students did not want ‘carte blanche’ and instead sought some direction. For
example, they wanted Monash to make suggestions such as: ‘Here are the elective units
we recommend if interested in focusing on risk in the health profession or policing’ etc.
6. Improve overall student experience: Whilst the student experience was overall positive
there were some areas of weakness including administration, variable lecture quality and
a perception of some materials being out-dated. Desirably, the overall experience can be
improved.
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Recommendations7. Foster greater links with key industry sectors and players: Industry links help build the Monash reputation and also
represent a source of students. To this end ASIC, RMIA and AICD among others were suggested as opportunities. Also, it
would be desirable to develop course offerings tailored for specific industries such as mining, health and so forth as well as
groups of people such as new board members.
8. Manage international / domestic student relations: Whilst potentially difficult to meet the (sometimes) differing needs of
these groups, it nonetheless should to be considered. For example, that block mode appeals to local students but less to
international should not mean that it is abandoned. Desirably it should run in conjunction with business hours unit offers.
9. Expand marketing communications: Whilst Chant Link & Associates cannot be aware of the budget available or
feasibility of such a recommendation, it would be desirable to further promote the course, especially since it is top-of-mind
currently for many senior managers. To this end we recommend targeted use of media such as industry journals rather
than mainstream media, due to the specialised nature of the field.
94 Chant Link & Associates: 3148 Master of Risk Management Report
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Victoria Australia 3122
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