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Finance Major Toolkit

A resource for all Finance students,

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

  • Required RMI courses:
    • FIN:3400 Principles of Risk Management and Insurance
    • FIN:4410 Corporate and Financial Risk Management
  • Elective RMI courses (choose two of the following):
    • FIN:4420 Property and Liability Insurance
    • FIN:4430 Life and Health Insurance
    • FIN:4440 Employee Benefits
    • FIN:4450 Risk Modeling

Suggested electives as part of the Finance Major for different career paths:

  • If you would like to improve your decision-making skills under risk and uncertainty without committing to any specific career path, we recommend taking the following courses:
    • FIN:3400 Principles of Risk Management and Insurance
    • FIN:4410 Corporate and Financial Risk Management
    • FIN:4450 Risk Modeling
  • Corporate risk manager:
    • FIN:3400 Principles of Risk Management and Insurance
    • FIN:4410 Corporate and Financial Risk Management
    • FIN:4420 Property and Liability Insurance
    • FIN:4450 Risk Modeling
    • FIN:4440 Employee Benefits
  • Underwriter:
    • FIN:3400 Principles of Risk Management and Insurance
    • FIN:4420 Property and Liability Insurance
    • FIN:4410 Corporate and Financial Risk Management
  • Broker/independent agent:
    • FIN:3400 Principles of Risk Management and Insurance
    • FIN:4420 Property and Liability Insurance
    • FIN:4410 Corporate and Financial Risk Management
    • FIN:4430 Life and Health Insurance
  • Risk management consultant:
    • FIN:3400 Principles of Risk Management and Insurance
    • FIN:4410 Corporate and Financial Risk Management
    • FIN:4450 Risk Modeling
    • FIN:4420 Property and Liability Insurance
    • FIN:4440 Employee Benefits

 

  • Claims adjuster:
    • FIN:3400 Principles of Risk Management and Insurance
    • FIN:4420 Property and Liability Insurance
    • MGMT:4100 Dynamics of Negotiation
  • Employee benefits specialist:
    • FIN:3400 Principles of Risk Management and Insurance
    • FIN:4440 Employee Benefits
    • Additional courses to broaden your knowledge base (e.g., FIN:4410 Corporate and Financial Risk Management or FIN:4420 Property and Liability Insurance)
  • Personal lines insurance agent:
    • FIN:3400 Principles of Risk Management and Insurance
    • FIN:4430 Life and Health Insurance
    • Additional courses to broaden your knowledge base (e.g., FIN:4420 Property and Liability Insurance or FIN:4410 Corporate and Financial Risk Management)

 

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:

  • $30,000-50,000 in scholarships awarded to RMI students each year.
  • Exclusive networking events
  • Mentor program with industry professionals
  • Visibility to top recruiters with Vaughan’s RMI student resume book
  • Student newsletter with job and internship announcement
  • RMI-specific career fair
  • Active student org (Gamma Iota Sigma)
  • Industry speaker series
  • Active Young Alumni Board and Advisory Board
  • Regular RMI alumni events to support your career after you graduate

 

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)