Form C4
Heriot-Watt University - Course Descriptor
1. Course
Code
C31RU
2. Course
Title
Accounting for Risk and Uncertainty
3. SCQF 11
4. Credits
Level
6. Course
Professor Ian Thomson
Co-ordinator
15
5. School
Management and Languages
7. Delivery:
Location &
Semester
Edin
SBC
Orkney
Dubai
IDL
Collaborative Partner
Approved Learning Partner
Sem…2
Sem…….
Sem………..
Sem……..
Sem….
Name…………………….....Sem..…...
Name …………………………………Sem………..
8. Pre-requisites
9. Linked Courses
(specify if synoptic)
10. Excluded Courses
11. Replacement Courses
Code:
12. Degrees for which
this is a core course
Date Of Replacement:
13. The course may be
delivered to:
UG only
PG only
UG & PG
Proposed MSc in Accounting
14. Available as an Elective?
Yes
No
15. Aims
Risk and risk management is at the basis of many accounting techniques. Financial reporting was introduced to protect investors from the actions of bad or incompetent
managers. Many business decisions are about balancing risks – for example decisions to insure or not to insure, what level of investment in safety equipment, to hedge
against currency or interest rate movements. Accounting is seen to be underpinned with a desire to reduce risks. Over the past few years new theories of risk have been
emerging that question our understanding of risk and they way in which risk is factored into organisational and individual decision-making. These new theories question the
applicability of objective risk and probability theories used in finance and accounting. The consequences of these theories have the potential to radically alter many
accounting conventions and basic techniques. This course will explore the emerging risk debate by introducing the students to a new literature base and consider the impact
on accounting from this new risk perspective. Existing techniques will be deconstructed using risk theories and new ways of accounting for risk explored. An enhanced risk
framework will be developed by the student offering new insights into existing problems and phenomena.
16. Syllabus
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


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Accounting in the Risk Society
Uncertainty and Culture
Measuring Risk
Monetizing Risk
Asset Valuation
Investment Appraisal
Reporting on Risk
Accounting for Risk
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Form C4
Heriot-Watt University - Course Descriptor
17. Learning Outcomes (HWU Core Skills: Employability and Professional Career Readiness)
Understanding, Knowledge and Cognitive Skills
Scholarship, Enquiry and Research (Research-Informed Learning)
 Develop a critical understanding of the new risk literature
 Understand the subjective nature of risk in society and business
 Become aware of the history and transformation of
 Become able to evaluate critically the effectiveness of
understanding of risk
accounting models and techniques from a risk perspective
 able to design accounting techniques that more effectively
 understand the possibility that risk reduction accounting
manage risk than conventional techniques
techniques may increase risks not reduce them
 Develop knowledge of emerging practices related to risk
accounting
 Understand the different theoretical and philosophical roots of
accounting for risk
Industrial, Commercial & Professional
Autonomy, Accountability & Working with
Communication, Numeracy & ICT
Practice
Others
 this course will provide students with
 Students will pursue their own learning
 Through group working in seminars,
insights that will be of value to them in
by being challenged to identify their
students will have the opportunity to
securing employment within the
own understanding of risks and how to
develop presentation skills, including
accountancy profession and business
best manage them.
the appropriate use of ICT.
organisations.
 The critical analysis of this research
 Students will develop skills in jointly
 This course will facilitate the
literature will develop students
exploring complex problems
development of communication skills,
intellectual and professional
associated with risks.
including explaining, listening,
competencies by analysing and
questioning, presenting and defending
 Students will gain self-confidence in
evaluating evidence, logical reasoning
a position, giving feedback orally & in
problem solving as they work towards
and practical applications
writing.
designing new risk accounting
practices
 As a course based on integrating
academic research with practical
problems of risk management,
students will be required to develop a
range of generic research skills.
18. Assessment Methods
19. Re-assessment Methods
Method
Duration of Exam
Weighting (%)
Synoptic courses?
Method
(if applicable)
Coursework
Examination
20. Date and Version
Date of Proposal
2 hours
17th September 2014
Duration of Exam
Diet(s)
(if applicable)
30%
70%
Date of Approval by
School Committee
Examination
Date of
Implementation
September 2015
2 hours
Version
Number
2/2
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