This graduate course teaches students the principles of risk management in insurance companies. Requirements from Solvency II for European insurance companies are reviewed. Based on these minimum requirements the process of determining economic capital is taught. The students understand what kinds of risks are present in various insurance classes and how to manage those risks using state-of ?art techniques. Especially, Value-at-Risk methods are applied to estimate the possible financial effect of risks. Various internal and external reporting requirements are summarized.