FTMBA2026 Risk Management & Crisis Leadership

Course Content

Risk Management:

In this course, you will learn how to successfully prepare for potential crises through pre-crisis management. We begin by identifying major corporate risks from a strategic perspective (case study: Coca-Cola). Building on this, we explore empirical methods to estimate risks and uncertainties—focusing on probabilities and potential losses in extreme negative events (exercise: playing darts).

We then analyse the 2008/09 global financial crisis, with a particular emphasis on bank resolution plans as tools for crisis preparation. Applying these insights to a corporate context, we examine RWE’s transition to green energy production and risk mitigation strategies (hedging) through a case study and a guest lecture.

Finally, we identify and discuss the psychological traits of successful crisis leaders and leadership teams, providing a comprehensive view of both analytical and human factors in effective crisis management.

Crisis Leadership:

This course prepares you for successfully traversing your companies through the storm of economic, political, climate, and societal crises. Crises are unexpected events that are characterized by high levels of ambiguity of cause, effect, and means of resolution. When faced with a crisis, leadership is ever more important. Crisis leaders need to act quickly, despite uncertainty, time pressure, and high stakes. They need to clarify the situation, show empathy, while conveying hope and resoluteness, provide communication and coordination, and mobilize internal as well as external stakeholders. At the same time, they stand in the spotlight of public attention. However, crisis leadership is not only about reacting to situational changes but also about proactively seeking new avenues to shape competitive advantage amid the storm. Crisis leadership is thus demanding but offers the opportunity to demonstrate exceptional leadership qualities. 

Intended Learning Outcomes and Competencies

Risk Management:

Enhancing your knowledge about and ability to perform five key pre-crisis leadership capabilities

• strategic risk identification
• empirical estimations of risks, uncertainties, probabilities and loss exposures
• bank resolution plans as a crisis preparation
• risk mitigation through hedging
• Identification of psychological traits of successful crisis leaders

Crisis Leadership:

Enhancing your knowledge about and ability to perform five key crisis leadership capabilities

• Preparedness and Quick Response: React swiftly and decisively in crises, enhancing their decision-making under pressure.
• Team Coordination and Communication: Improve team dynamics and communication, ensuring cohesive and effective team responses to crises.
• Risk Assessment and Management: Identify and mitigate risks, minimizing the impact of crises on operations and stakeholders.
• Maintaining Stakeholder Confidence: Enhance communication and trust-building with internal and external stakeholders, protecting organizational reputation.
• Continuous Improvement: Promote a culture of learning and adaptation, enabling organizations to refine crisis management protocols and practices.

Instruction Type

Risk Management:

Applying strategic management to risk management

Exercise and application of empirical estimation techniques (Monte Carlo simulation)

Financial markets and hedging techniques

Personality theories and trait analysis 

Crisis Leadership:

Crisis leadership theories

Crisis leadership practice examples

Crisis leadership group simulation 

Form of Examination

Risk Management:

None.

Crisis Leadership:

None.

Literature

Risk Management:

• Bundy, J., Pfarrer, M. D., Short, C. E., & Coombs, W. T. 2016. Crises and Crisis Management: Integration, Interpretation, and Research Development. Journal of Management, 43(6): 1661-1692.)
• Konstantinides (1998): Clarity from competence, Risk 1998
• Hull, J. (2015): Risk Management and Financial Institutions
• RWE Annual Report 2022

Crisis Leadership:

• Feigen, M., Wallach, B., & Warendh, A. 2020. Look to Military History for Lessons in Crisis Leadership. Harvard Business Review Digital Articles: 2-4.
• Heifetz, R., Grashow, A., & Linsky, M. 2020. Leadership in a (Permanent) Crisis. Harvard Business Review: 10-12.
• James, E. H., & Wooten, L. P. 2005. Leadership as (Un)Usual: How to Display Competence in Times of Crisis. Organizational Dynamics, 34(2): 141-152.
• Tsolkas, C. 2015. What It Was Like to Be a Manager in Ukraine. Harvard Business Review Digital Articles: 2-4.