Memorandum

To: Edson Justiniano

Chair, EPPC

From: Scott Below

Chair, Department of Finance

Date: November 4, 2009

Re: Risk Management and Insurance Concentration Proposal

_____________________________________________________________________________________

RMI Justification:

As a result of our ongoing assessment efforts, feedback from our Business Advisory Council and a recent grant we propose a new concentration in Risk Management and Insurance (RMI). This concentration will be part of our existing BSBA in Finance. In measuring demand for such a program we analyzed programs such the one at Appalachian State University, which has over 100 majors enrolled in their RMI concentration. We also queried industry leaders from organizations such as the Independent Insurance Agents of North Carolina (IIANC) and State Farm, finding a large unmet demand and lucrative career opportunities for students trained in risk management and insurance. This unmet demand for graduates was a significant motivating factor for the IIANC grant and an integral part of our rationale for proposing it.

The proposed concentration area consists of 18 semester hours in total, with 12 hours required and the remaining 6 hours chosen from a list of six concentration electives. All concentration courses will be taught face-to-face. Course enrollments were estimated based on the enrollments at other universities, with Appalachian State weighing the heaviest because of shared attributes such as regional university status in the UNC system and overall undergraduate enrollments in business (2,200 at ASU vs. 2,600 at ECU).

The concentration curriculum was developed after analyzing the RMI curriculums at a large number of other universities, including Appalachian State University, the University of Georgia, Georgia State University, Florida State University, Temple University, and the University of Wisconsin. Although course makeup differs from university to university, virtually all adopt the profile of an introductory principles course that serves as a prerequisite for all other concentration-specific courses.

Budgetary and Staffing Considerations:

A new faculty member was hired to run the insurance program prior to the seriousness of the state budget issues becoming known. She will be able to teach three of the four required courses in the RMI concentration and the final course, FINA 4854 Employee Benefits and Retirement Planning, is already offered each Spring and enrollments are such (25 and 31 the previous two Spring semesters) that we can increase classroom size and continue offering just one section. Of the elective courses in the concentration, all are currently offered with the exception of FINA 4244 Insurance Law. Because there are six concentration electives to choose from in total, deciding not to offer FINA 4244 until the budgetary and staffing situations return to normal would not be a hardship to students in the concentration.

In order to establish the new risk management and insurance concentration the following changes were previously approved by the UCC, Faculty Senate, and Chancellor:

Addition of 3 new courses:

FINA 3154: Principles of Risk Management and Insurance

FINA 4244: Insurance Law

FINA 4354: Commercial Property and Liability Insurance

Revision of 2 existing courses:

FINA 3874: Insurance Planning

FINA 4854: Employee Benefits and Retirement Planning[1]

The risk management and insurance concentration was approved at the April 9, 2009 UCC meeting. The UCC meeting minutes were approved by the Faculty Senate on April 21, 2009.  Subsequently, Chancellor Ballard approved these curriculum matters on June 3, 2009.

Following are the catalog pages showing the changes required to the Finance Department curriculum.

Thank you for your consideration.

DEPARTMENT OF FINANCE

Scott Below, Chairperson, 3420 Bate Building

BSBA in Finance

The BSBA in finance offers the student an opportunity to study a wide variety of financial topics financial analysis and financial markets and institutions. Concentrations are offered in managerial finance, and financial services, and risk management and insurance. Students interested in pursuing a career in real estate should select the financial services concentration, choosing FINA 4604 as the concentration electives and FINA 4574 as a general elective. Students interested in pursuing a banking career should select the managerial finance concentration, choosing FINA 4654 as one of the two concentration electives. Minimum degree requirement is 120 s.h. of credit as follows:

1. Foundations curriculum requirements (See Section 4, Foundations Curriculum Requirements for all Baccalaureate Degree Programs), including those listed below...............................42 s.h.

BIOL 1060. Environmental Biology (4) (F,S,SS) (FC:SC) or CHEM 1020. General Descriptive Chemistry (4) (FC:SC) or GEOL 1700. Environmental Geology (4) (F,S) (FC:SC) or PHYS 1050. Physics and the Environment (4) (F,S,SS) (FC:SC)

COMM 2420. Business and Professional Communication (3) (F,S,SS) (FC:FA)

ECON 2113. Principles of Microeconomics (3) (F,S,SS) (FC:SO)

ECON 2133. Principles of Macroeconomics (3) (F,S,SS) (FC:SO) (P: ECON 2113)

MATH 1066. Applied Mathematics for Decision Making (3) (F,S,SS) (FC:MA) (P: Appropriate score on mathematics placement test or approval of dept chair)

PHIL 2274. Business Ethics (3) (WI*) (F,S,SS) (FC:HU) or PHIL 2275. Professional Ethics (3) (WI*) (F,S,SS) (FC:HU) (WI*)

PSYC 1000. Introductory Psychology (3) (F,S,SS) (FC:SO)

SOCI 2110. Introduction to Sociology (3) (F,S,SS) (FC:SO)

2. Cognates.....................................................................................................................................6 s.h.

ENGL 3880. Writing for Business and Industry (3) (WI) (F,S,SS) (P: ENGL 1200)

MATH 2283. Statistics for Business (3) (F,S,SS) (P: MATH 1065 or 1066 or equivalent)

3. Business core...........................................................................................................................36 s.h.

ACCT 2401. Financial Accounting (3) (F,S,SS) (P: MATH 1065 or 1066 or 2119 or 2121 or 2171)

ACCT 2521. Managerial Accounting (3) (F,S,SS) (P: ACCT 2401)

FINA 2244. Legal Environment of Business (3) (F,S,SS)

FINA 3724. Financial Management (3) (F,S,SS) (P: ECON 2113; MATH 2283; P/C: ACCT 2521)

MGMT 3302. Management of Organizations (3) (F,S,SS) (P: ECON 2113, 2133; ACCT 2401)

MGMT 4842. Business Policy (3) (WI) (F,S,SS) (P: OMGT 3123; FINA 3724; MKTG 3832; MGMT 3302; declared major in the College of Business; senior standing)

MIS 2223. Introduction to Computers (3) (F,S,SS)

MIS 3063. Introduction to Management Information Systems (3) (F,S,SS) (P: MIS 2223)

MKTG 3832. Marketing Management (3) (F,S,SS) (P: ECON 2113)

OMGT 3123. Operations and Supply Chain Management (3) (F,S,SS) (P: MATH 2228 or 2283; MIS 2223)

OMGT 3223. Business Decision Modeling (3) (F,S,SS) (P: Minimum grade of C in MIS 2223, MATH 1066 or 2119 or 2121 or 2171, 2283)

Choose one international perspectives course from:

ACCT 4451. International Accounting (3) (P: FINA 3724)

FINA 4454. International Finance (4) (S) (P: FINA 3724)

MGMT 3352. International Business (3) (F,S,SS) (P: MGMT 3302)

MKTG 3852. Cultural Environment of International Business (3) (F,S) (P: Junior standing; completion of a minimum of 3 s.h. in ECON [may be specified by dept])

MKTG 4992. International Marketing (3) (WI) (F,S) (P: MKTG 3832)

4. Concentration area (Choose one.)..........................................................................................18 s.h.

Financial Services:

FINA 3144. Financial Markets (3) (F,S) (P: ECON 2113)

FINA 3554. Principles of Real Estate (3) (F,S) (P: ACCT 2401; ECON 2133)

FINA 3904. Investments (3) (F,S) (P: ECON 2133; FINA 3724)

FINA 4404. Security Analysis and Portfolio Management (3) (S) (P: FINA 3904)

FINA 4854. Estate Employee Benefits and Retirement Planning (3) (S) (P: FINA 3724)

Choose 3 s.h. from (Students interested in real estate should select 4604 and 4574 [to be counted as a general elective]):

FINA 3244. Commercial Law (3) (F,S) (P: FINA 2244 or consent of instructor)

FINA 3874. Insurance Planning Corporate and Financial Risk Management (3) (F,S) (P: FINA 3724, 3154)

FINA 4574. Real Estate Management and Brokerage (3) (S) (P: FINA 3554)

FINA 4604. Real Estate Financing (3) (F) (P: FINA 3554, 3724)

Managerial Finance:

FINA 3144. Financial Markets (3) (F,S) (P: ECON 2113)

FINA 3824. Financial Analysis and Planning (3) (F,S) (P: FINA 3724)

FINA 3904. Investments (3) (F,S) (P: ECON 2133; FINA 3724)

FINA 4734. Financial Management II (3) (F,S) (P: FINA 3824)

Choose 6 s.h. from (Students interested in banking should choose 4654 as one of the electives.):

ACCT 3551. Intermediate Accounting I (3) (F,S,SS) (P: ACCT 2521; P/C: FINA 3724)

ACCT 3621. Cost Accounting (3) (F,S,SS) (P: ACCT 2521)

FINA 3554. Principles of Real Estate (3) (F,S) (P: ACCT 2401; ECON 2133)

FINA 4404. Security Analysis and Portfolio Management (3) (S) (P: FINA 3904)

FINA 4454. International Finance (3) (S) (P: FINA 3724)

FINA 4654. Commercial Bank Management (3) (F) (P: FINA 3144, 3824)

FINA 4964. Topics in Finance (3) (P: Consent of dept chair)

Risk Management and Insurance:

FINA 3154. Principles of Risk Management and Insurance (3) (F,S) (P: MATH 2283; FINA 2244)

FINA 3874. Corporate and Financial Risk Management (3) (F,S) (P: FINA 3724, 3154)

FINA 4354. Commercial Property and Liability Insurance (3) (F) (P: FINA 3154)

FINA 4854. Employee Benefits and Retirement Planning (3) (S) (P: FINA 3724)

Choose 6 s.h. from

FINA 3144 Financial Markets (3) (F,S) (P: ECON 2113)

FINA 3554 Principles of Real Estate (3) (F,S) (P: ACCT 2401; ECON 2133)

FINA 3904. Investments (3) (F,S) (P: ECON 2133; FINA 3724)

FINA 4244 Insurance Law (3) (S) (P: FINA 3154)

FINA 4964. Topics in Finance (3) (P: Consent of dept chair)

MKTG 4762. Services Marketing (3) (P: MKTG 3832)

General Business Concentration:

The concentration in general business offers students the opportunity to acquire a general overview of the skills necessary to manage human and physical resources. Although primarily designed for distance education students, students on campus may choose this concentration. Enrollment in this concentration will be limited by the resources available. Distance education students will receive priority in enrollment in distance education courses.

Complete 18 s.h. of credit as detailed below:

ACCT 4921. Accounting for Business Professionals (3) (F,S) (P: ACCT 2524)

FINA 3144. Financial Markets (3) (F,S)

MGMT 4242 Organizational Behavior (3) (F,S) (P:3302) or PSYC 3241. Personnel and Industrial Psychology (3) (F,S,SS) (FC:SO) (P: PSYCH 1000 or 1060)

MKTG 4732. Consumer Behavior (3) (F,S) (P: MKTG 3832)

OMGT 4733. Project Management (3) (F,S) (P: OMGT 3123)

Choose one from:

MGMT 4402. Human Resources Management (3) (F,S) (P: MGMT 3202 or 3302)

FINA 3904. Investments (3) (F,S) (P: ECON 2133; FINA 3724)

Other courses approved by advisor.

5. Electives to complete requirements for graduation.

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[1] To avoid confusion, please note that on page 192 of the 2008-2009 Undergraduate Catalog, FINA 4854 is erroneously named “Estate and Retirement Planning.” This name was changed to “Employee Benefits and Retirement Planning” a number of years ago and the error went unnoticed until now. The name change is properly reflected under the Courses section of the 2008-2009 catalog on page 406.