UNC on the 'very cusp' of approval for Risk Management minor

The UNC Institute for Risk Management and Insurance Innovation is working toward offering a Risk Management minor, intending to prepare students to address financial risks using new technology and data science techniques.

At an information session last Wednesday for the minor, Greg Characklis, the director of IRMII, said that risk management is the understanding and action to address financial risks emerging from disease, extreme weather and cyber security.  Characklis defined the concept as a function of linked systems of hazards, or risk events with engineering, the systems that control those risks, and economic and financial implications. 

He referenced examples including COVID-19, the emergence of artificial intelligence and the impacts of natural disasters. 

Characklis said there is already a foundation for the minor at UNC, stemming from the Center on Financial Risk in Environmental Systems. He said that CoFiRES, which he also oversaw, has effectively absorbed into the Institute.

Four courses are being offered for the upcoming spring semester, including DATA/ENEC/ENVR 540: Introduction to Risk Management and Insurance,  DATA/ENEC/ENVR 541: Natural Hazards and Financial Risk, DATA/ENEC/ENVR 542 Insurance: Balancing Risk and Return and DATA/ENEC/ENVR 543: Risk, Data Science and AI. Prospective students can take classes in any order. 

Vice Chancellor for Research Penny Gordon-Larsen said that there is a disconnect between education and the workforce.

“It's a big, big gap in the risk management and insurance industries,” she said.

She said that to prepare for the workforce, the next generation needs applicable skills and expertise that allow them to practice predicting risk and protecting individuals and industries from financial risks.

The risk management minor will connect undergraduate students with industry experience, as the IRMII is centered on doctoral and master’s training. 

“It’s a win-win for industry and university partnership,” Gordon-Larsen said.

At the information session, IRMII Director of Industry Engagement Rachel Baum said that the minor will comprehensively foster skills through applied learning, networking, job opportunities and internships with 35 commercial partners. Baum said that the minor will breach the theoretical aspect of classes by pushing students into addressing real issues.

Characklis described the risk management minor as unlike any other undergraduate program at the University.

The new IRMII website states that risk management is multidisciplinary, with a potential variety of students finding themselves aligning with the minor. Gordon-Larsen said that she expects students studying environmental science, business and public health to add on the minor, along with government-oriented and pre-law students.

She also said that since financial risk is a part of protecting peoples’ health, students with a future in policy could benefit from the minor. Characklis said that students studying quantitative finance in the physics department could also potentially minor in risk management. 

Grant Mckenzie, a UNC sophomore majoring in physics and mathematics, wrote in an email statement to The Daily Tar Heel that the risk management minor and offerings of IRMII correspond with his interest in financial modeling and systematic trading. He wrote the minor is applicable and essential in fields such as portfolio management and quantitative strategies, as well as generally useful for professional development. 

The knowledge derived from the minor, he said, will be immediately useful in [his] career and beyond.

“It's rare to find a subject area with such broad relevance across multiple majors while maintaining a clear path for future expansion,” he said. 

Characklis said that Monday, Sept. 30 was the latest meeting for the minor’s pending status. Although a decision has not been announced at the time of publication, he said the program is at the very cusp of approval.

@dailytarheel | university@dailytarheel.com