Course Summary
Credit Type:
ACE Course Number:
Organization Course Number:
ARM 56
11 weeks (44 -- 66 hours)
Dates Offered:
Credit Recommendation & Competencies
Level Credits (SH) Subject
Lower-Division Baccalaureate 3 Risk Financing
This course is part of a sequence of courses for which students must successfully complete the requirements of all segments in order to receive credit recommendations. Successful completion of coursework includes enrollment in and successful passing of a final credentialing exam.


The course objective is to provide the student with knowledge of risk financing techniques in order to minimize the net present value of paying for losses.

Learning Outcomes:

  • Evaluate the relationship between characteristics of hazard losses and financing plans
  • Formulate procedures leading to minimization of financial consequences of losses and claims by estimating the hazard risk and managing the risk through risk retention or transfer methods
  • Utilize various categories of hazard risk financing plans

General Course Topics:

  • Introduction to risk financing
  • Estimating hazard risk
  • Transferring hazard risk through insurance
  • Self-insurance plans
  • Retrospective rating plans
  • Reinsurance
  • Captive insurance
  • Contractual risk transfer
  • Transferring financial risk
  • Transferring hazard risk to the capital markets
  • Allocating costs of managing hazard risk
Instruction & Assessment

Instructional Strategies:

  • Case Studies
  • Practical Exercises

Methods of Assessment:

  • Examinations

Minimum Passing Score:

Supplemental Materials