A postgraduate-level qualification equipping learners with advanced risk management skills, covering principles, strategic risk, governance, environmental risk, modelling, and research methods across financial and non-financial organisations.
The OTHM Level 7 Diploma in Risk Management is a fully regulated, Ofqual-approved qualification comprising 6 mandatory units, offering a comprehensive blend of theoretical and practical risk management education.
Qualification Number: 603/6782/9, regulated by Ofqual on the RQF
6 mandatory units totalling 120 credits
1200 hours Total Qualification Time (TQT) and 600 Guided Learning Hours (GLH)
Internally assessed by the centre and externally verified by OTHM
Pass/Fail grading based on achievement of all specified learning outcomes
Flexible delivery: face-to-face, online, or distance learning over one academic year
About This Course
The OTHM Level 7 Diploma in Risk Management is designed to equip learners with the skills and understanding in risk management that align with good strategic decision-making to maintain an organisation's competitive advantage. The programme provides an in-depth understanding of risk and its practical applications in both financial and non-financial organisations. Learners develop both theoretical and practical knowledge of risk, including advanced techniques for risk measurement and modelling.
Approved and regulated by Ofqual (Office of Qualifications and Examinations Regulation)
Equivalent to Master's degree level on the UK Regulated Qualifications Framework (RQF)
Covers both financial and non-financial risk management applications
Develops skills in risk measurement, modelling, governance, and strategic planning
Provides a pathway to Master's or MBA top-up programmes at UK and overseas universities
Supports flexible study modes including online and distance learning
What You'll Learn
The programme covers a wide range of official learning outcomes derived directly from the OTHM specification, enabling learners to critically analyse, evaluate, and apply risk management concepts at a postgraduate level.
Critically evaluate five basic methods for risk management and the three-stage risk management process
Compare and contrast the influences of legislation, legal factors, and regulatory bodies on health and safety in organisations
Assess the focal points of ISO standard harmonisation programmes and their organisational impact
Evaluate tools used to review organisational strategy and risk plans, and assess market position using appropriate frameworks
Assess contemporary issues contributing to CSR risk management systems and evaluate ethical implications for business stakeholders
Critically analyse the importance of Business Impact Analysis (BIA) and approaches to business continuity planning
Explain how leadership and management styles should adapt to meet the needs of different risk situations in organisations
Critically evaluate the role of a board in corporate governance and different governance approaches taken
Prepare a risk management plan using environmental screening to help mitigate potential risks
Evaluate a range of risk financing options available to an organisation
Assess the Standardised Measurement Approach for credit risk as per Basel III recommendations
Analyse Knightian uncertainty, the Ellsberg paradox, and Black Swan events, and apply mathematical models including VaR, CVaR, and EVaR
Who Should Attend
This qualification is designed for professionals who wish to advance their career in risk management or deepen their expertise in strategic risk across any sector. It is particularly relevant for the following learner groups.
Risk management professionals seeking postgraduate-level qualifications and career advancement
Senior managers and executives responsible for strategic decision-making and risk governance
Compliance officers, internal auditors, and regulatory affairs professionals
Health, safety, and environmental managers seeking to broaden their risk expertise
Finance and banking professionals involved in operational risk, credit risk, or risk modelling
Graduates holding a Level 6 diploma or honours degree who wish to progress to Master's level study
Entry Requirements
Entry to the OTHM Level 7 Diploma in Risk Management is designed to be accessible while ensuring learners have the academic or professional foundation necessary to succeed at postgraduate level.
An honours degree in a related subject, a UK Level 6 diploma, or an equivalent overseas qualification
Mature learners with relevant management experience may be considered (learners must confirm eligibility with the delivery centre prior to registration)
Learners must be 21 years of age or older at the commencement of the course
Learners from non-majority English-speaking countries must provide evidence of English language competency in line with OTHM's English Language Expectations
Curriculum
Definition of risk in an organisational context and explanation of risk management
The three-stage risk management process: Risk Identification, Risk Assessment, and Risk Planning
Critical evaluation of five basic methods for risk management: Avoidance, Retention, Sharing, Transferring, and Loss Prevention and Reduction
Five legislative factors influencing health and safety risk assessment, including COSHH (2002), Health and Safety at Work Act (1974), RIDDOR, Manual Handling Operations Regulations (1992), and Personal Protective Equipment Regulations (2002)
Analysis of the influence of relevant legislation, legal factors (statutory law, civil law, duty of care, negligence), and regulatory bodies (HSE, local authorities) on health and safety
Critical evaluation of the scope of relevant ISO standards in organisations, including ISO 31000:2018, ISO/TR 31004:2013, IEC 31010:2019, ISO 31022:2020, and IWA 31:2020
Focal points of ISO standards harmonisation programmes: transferring accountability gaps, aligning governance frameworks, embedding management system reporting, and creating uniform risk criteria
Application of ISO standards in managing organisational risk, including risk management policy, mandate, accountability, and treatment options (avoiding, accepting, removing, sharing, and retaining risk)
Definition of strategy risk and identification of major strategy risks: liability, marketing, project, innovation, merger and acquisition, security, compliance, economic, procurement, liquidity, and regulatory risk
Evaluation of the impact of strategy risks on business operations
Tools for reviewing organisational strategy and risk plans: Value Chain Analysis, SWOT Analysis, Porter's Five Forces, internal surveys
Risk management standards: ISO 31000 (2018), IRM Standard (2002), COSO ERM Framework (2004), and CoCo Framework (1995)
Market position analysis: market share analysis, life cycle analysis, BCG Matrix, benchmarking, competitive analysis, and pricing strategies
The STEP framework (Social, Technological, Economic, Political) and its application to risk management
Contemporary issues contributing to CSR risk management: risk identification, evaluation, description, application, and monitoring
Ethical implications for businesses and stakeholders when organisations fail to operate ethically (impact on productivity, morale, brand value, and share value)
Vulnerability assessment: factors (business size, operating environment), impacts (loss of profits, inability to trade), and continuity approaches
Business Impact Analysis (BIA): conducting BIA, business continuity planning, threat assessment, scenario definition, recovery solution design, implementation, communication, and testing
Crisis management strategies: employment practices, fraud prevention, health and safety policy, protection of physical assets, benchmarking, and disaster management
Socio-cultural, ethical, and moral issues affecting organisations: equal opportunities, diversity, disability, discrimination, harassment, whistleblowing, privacy, and confidentiality
Workforce profiling and diversity management approaches: multiculturalism, glass ceilings, human rights, empowerment, work-life balance, and employee participation
Ethical standards in business activities: codes of practice, affirmative action, organisational policies, and staff training
Concepts of strategic leadership and its links to risk management, including Mintzberg's 10 managerial roles and leadership power and influence
Key leadership and management theories: contingency theory (Fiedler), path-goal theory, process theories, psychodynamic theory, situational theories (Hersey and Blanchard), trait theories, transactional (Bennis and Bass), and transformational leadership
Leadership and management styles: autocratic, bureaucratic, laissez-faire, persuasive, participative, and charismatic; adapting styles to different risk situations
Importance of responsible corporate governance: board responsibilities, transparency, disclosure, objectivity, integrity, ethical behaviour, organisational culture, and stakeholder interests
Major governance frameworks, regulations, and acts: Cadbury Report, Greenbury Report, Hampel Report, Turnbull Report, Higgs Report, Smith Report, Companies Acts (2004, 2006), 8th EU Company Law Directive (2006), Sarbanes-Oxley Act (2002), and UK Corporate Governance Code
Principles of corporate governance: history, interaction with business ethics and company law, governance codes, and the Enron case
Role and impact of the board: board structures, types of governance policies, conflicts of interest, bribery, compliance, data protection, and rules-based versus principles-based approaches
Corporate rescue and liquidation: Administrator's role, voluntary winding up, creditors' winding up, duties of a liquidator, distribution of surplus assets, and dissolution
Types of risk and their impact on organisations: strategic risks, financial risks, operational risks, hazard risks, and information risks
High-risk areas across different sectors: data integrity, systems integrity, reputation, financial theft, and health and safety
Internal and external business risk: events within the organisation versus risks outside organisational control
Business functions involved in risk management: strategic planning, marketing, compliance, legal, accounting, insurance, treasury, internal audit, health and safety, and environmental management
Identifying the probability of risks in organisations: uncertainty in profits (legal issues, market trends, stock market fluctuations, production cost increases), danger of loss (natural disasters, technology failures, machine failure, fire, theft), and event risks (political factors, compliance changes, security breaches)
Business Impact Analysis: analysing level of risk (consequence x likelihood), rating risks (severe, high, moderate, low)
Preparing a risk management plan using environmental screening: prevention, preparedness, response, and recovery phases
Common types of hazard controls: preventive, corrective, directive, and detective controls
Risk financing options: conventional insurance, contractual transfer of risk, captive insurance companies, pooling of risks in mutual insurance companies, derivatives and financial instruments, alternative risk finance mechanisms, and single premium insurance bonds
Concept of operational risk: country risk, legal risk, model risk, political risk, valuation risk, and moral hazard
Ten principles of Sound Practices for operational risk management under Basel II
Seven official Basel II event types: Internal Fraud, External Fraud, Employment Practices and Workplace Safety, Clients and Products and Business Practice, Damage to Physical Assets, Business Disruption and Systems Failures, and Execution and Delivery and Process Management
Three common methods to calculate operational risk capital: Basic Indicator Approach, Standardised Approach, and Advanced Measurement Approaches (IMA, LDA, Scenario-based, Scorecard)
Scope of the Standardised Measurement Approach under Basel III
Standardised approach for credit risk as per Basel III recommendations
Black-Scholes model: concept, equation, practical applications, and limitations including tail risk, liquidity risk, volatility risk, and gamma hedging
Knightian uncertainty, Ellsberg paradox, and Black Swan events with historical examples (Fukushima, World Trade Centre collapse, Soviet Union collapse)
Dynamic Financial Analysis (DFA): application to business mix, reinsurance, asset allocation, profitability, solvency, and compliance
Value at Risk (VaR): variance-covariance VaR, delta-gamma VaR, historical simulation VaR, and resampled VaR
Conditional Value-at-Risk (CVaR) and Entropic Value-at-Risk (EVaR): concepts and mathematical application
Understanding the research context: research problem identification, topic identification, conceptualisation of a research problem, developing insights, and assessing feasibility
Developing and justifying appropriate research aims, objectives, scope, and timeframe
Critically exploring, selecting, and justifying research approaches and philosophical underpinnings
Critical analysis of different theoretical approaches to a risk management research problem
Conducting a structured and thorough critical literature review: selection of literature sources, evaluation of validity, identification of appropriate theories, and development of a theoretical framework
Research methodology design: research question or hypothesis testing, reliability and validity, ethical considerations
Quantitative methodology: questionnaire design and distribution, conducting surveys
Qualitative methodology: interviews, observation, and case studies
Designing research using the most appropriate method for a defined population and research objectives
Developing a research proposal: creating a research question, conducting a literature review, and designing a methodology
Proposing techniques for quantitative and qualitative data collection and analysis
Writing a research report for professional audiences: criteria sequence, formatting, editing, critical analysis, discussion of evidence and findings
Assessments
All units within the OTHM Level 7 Diploma in Risk Management are internally assessed by the approved centre and externally verified by OTHM. The qualification is criterion-referenced, meaning achievement is based on demonstrating all specified learning outcomes against defined assessment criteria.
Written assignments (reports) of approximately 4500 words per unit covering all learning outcomes and assessment criteria
Research Proposal for the Advanced Research Methods unit, also approximately 4500 words
Internal assessment by the approved centre's assessors, who must provide a clear audit trail of how overall achievement was determined
External verification of all assessed work carried out by OTHM to ensure consistency and standards
Progression
Successful completion of the OTHM Level 7 Diploma in Risk Management enables learners to progress both professionally and academically. As an Ofqual-regulated qualification, it is widely recognised by UK and overseas universities for advanced standing entry.
Progress to a Master's top-up programme (dissertation stage, 60 credits) at a UK or overseas university with advanced standing
Progress to an MBA top-up programme at partnered universities with advanced standing
Advance into senior or strategic risk management roles within financial and non-financial organisations
Pursue roles in governance, compliance, corporate strategy, or enterprise risk management
Application Form
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An adviser will review your eligibility for OTHM Level 7 Diploma in Risk Management and reply within 1–2 working days.
LevelLevel 7
Awarding BodyOTHM
Lessons63
