Risk is an essential part of the business world. Every investment can lead to high returns or substantial losses. Finding a cost-efficient solution for potential losses—that's risk management. When many firms or individuals face similar risk exposures, it's efficient to pool the risks together. In a large risk pool, the average loss becomes predictable (law of large numbers). That is the business model of insurance companies: Create a large risk pool of similar exposure units, and charge “expected losses” plus the expected cost of running the company. While large firms have their own risk management department, smaller firms hire risk management consultants, brokers, or independent agents to give them advice. Insurance companies need actuaries for price calculations, underwriters to analyze clients’ risks and to negotiate deals, claims adjusters to manage loss events, asset managers, marketing experts, accountants, and general managers to run the company.
Understanding risk and risk management allows making better business decisions regardless of your career paths. In addition, there are specific careers in the risk management and insurance (RMI) industry and firms regularly hire Tippie graduates into the following positions:
You can either choose risk management and insurance (RMI) courses as part of your Finance electives and count them towards your major, or you can take 4 additional RMI courses on top of the Finance Major requirements and earn the RMI Certificate.
RMI Certificate (more details here): https://tippie.uiowa.edu/about-tippie/centers-institutes/vaughan-institute/risk-management-insurance-certificate
Suggested electives as part of the Finance Major for different career paths:
Over 175 different employers have hired RMI graduates into 14 different industries, in 36 states and 4 countries. 40% of graduates work directly for insurance companies, brokers, and agencies; 75% of graduates remain in the Midwest and 40% in Iowa.
Below is the list of the Vaughan Institute’s Young Alumni Board members, their employers and current job titles. These individuals graduated from our RMI program 3-8 years ago.
The Vaughan Institute is the University of Iowa’s Center for Risk Management and Insurance (RMI), it has been recognized as a Global Center of Insurance Excellence (GCIE) by the International Insurance Society for its outstanding academic program and research. To date, only 20 RMI programs in the world (12 in the USA) received the GCIE designation.
The Vaughan Institutes provides all necessary resources for your professional success:
Contact the RMI advisor Bryce Parker (bryce-parker@uiowa.edu) for further information.
Join the Iowa chapter of GIS. The active student org hosts a guest speaker series and organizes industry networking events, social events, and field trips to conferences.
Contact the RMI advisor Bryce Parker (bryce-parker@uiowa.edu) to find out how you can become part of the Vaughan Institute’s RMI program and benefit from all Vaughan has to offer.
Chartered Property Casualty Underwriter (CPCU)
The designation is based on eight exams. The University of Iowa participates in the Collegiate Studies for CPCU program. Completing FIN:4420 Property and Liability Insurance and/or FIN:4410 Corporate and Financial Risk Management with a grade of “B” or higher earns you an exam waiver for one or two of the CPCU exams, respectively. If students earn both waivers and complete an online ethics models, they earn Collegiate Studies for the CPCU Certificate from the Institute.
Associate in Risk Management (ARM)
RIMS-Certified Risk Management Professional (RIMS-CRMP)