Risk Management In Banking And Insurance (RMBI) (Paper-20B) CMA Final Electives

Taught by Faculties:

Syllabus

SECTION A: RISK MANAGEMENT IN BANKING [60%]
1. Introduction to Risk Management - 5%
Concept of Risk
Risk vs. Uncertainty
Types of Risk
Risk Management – Concept and Approaches
Risk Management Strategies
2. Interest Rate Risk and Market Risk - 15%
Interest Rate Risk Management
Concept
Source
Term Structure of Interest Rates and Yield Curve
Interest Rate Risk and Credit Risk
Measuring Interest Rate Risk
Interest Rate Risk Measurement and Basel Norms
Managing Interest Rate Risk
Market Risk Management
Market Risk and its Types
Calculating Market Risk Exposures
Market Risk and Basel Norms, Value-at-Risk (VaR)
Sources of Foreign Exchange Risk Exposure
Foreign Asset and Liability Positions
Interaction of Interest Rate
Inflation and Exchange Rates
Hedging Market Risk
Dynamic Hedging Strategies
3. Credit Risk and Liquidity Risk - 15%
Credit Risk Management
Credit Risk Exposures, Types
Credit Risk Measurement Models – Merton’s Model
Credit Risk Measurement and Basel Norms
Managing Credit Risk
Management of Non-Performing Assets (NPAs)
Definition, Concept and Categorisation of NPAs
Choices available to Banks for Management of NPAs
Trading of NPAs
Status of NPAs in Banks in India
Liquidity Risk Management
Liability-side and Asset-side Liquidity Risk
Types of Liquidity Risk Events
Liquidity Risk vs. Credit Risk
Liquidity Risk in Insurance Services
Measuring Liquidity Risk
Managing Liquidity Risk
Asset Liability Management – Concept
Role of ALM in managing Interest Rate Risk and Liquidity Risk
RBI Guidelines
4. Sovereign Risk and Insolvency Risk - 10%
Sovereign Risk Events
Debt Repudiation versus Debt Rescheduling
Evaluation of Sovereign Risk
Mechanisms for dealing with Sovereign Risk Exposures
Insolvency Risk Analysis through Capital Adequacy Ratios
5. Operational Risk and Off-Balance Sheet Risk - 15%
Operational Risk – Identification and Assessment, Basel Norms
Monitoring and Mitigating Operational Risk
Off-Balance Sheet Risk Exposures
Loan Commitments
Commercial Letters of Credit, Letters of Undertaking and Bank Guarantee
Derivatives
Deposit Insurance
Nature of Off-Balance Sheet Risks

SECTION B: RISK MANAGEMENT IN INSURANCE [40%]
6. Introduction to Insurance Business - 10%
Definition, Concept and Features of Insurance
Principles of Insurance
Role of Insurance towards Economic Growth
Difference between Insurance Companies and other Financial Institutions
Insurance Regulatory and Development Authority (IRDA) – Objectives, Statutory Powers and Functions of IRDA
7. Insurance Intermediaries, General Insurance, Health Insurance and Life Insurance - 15%
Insurance Intermediaries
Insurance Agents
Surveyors and Loss Assessors
Insurance Brokers
Third Party Administrators (TPAs)
Bancassurance
Other Channels
General Insurance
Principles
General Insurance Products
Tariff Advisory Committee (TAC)
General Insurance Council
De-tariffing in General Insurance
IRDA’s Exposure/Prudential Norms
Solvency Margins of Non-life Insurers
Concept and Types of Health Insurance Policies
Structure and Type of Re-insurance
Life Insurance
Principles and Characteristics
Types of Life Insurance Products
Solvency Margins of Life Insurers
Various players in Life Insurance Business
LIC of India
Post Office Life Insurance
Other Players
8. Managing Risk in Insurance Business - 15%
Concept of Risk in Insurance Business
Factors affecting Risk Profile of Insurers
Kinds of Risks in Insurance – Portfolio Risk, Solvency Risk, Marketing Risk, Market Risk, Operational Risk and Other Risks
Risk-based Capital, Types of Risk-based Capital – Current Risks, Special Risks, Non-technical Risks
Risk Management Process in Insurance
Risk Identification
Risk Assessment
Risk Treatment
Risk Reduction
Risk Review and Monitoring
Role of an Actuary in Insurance Business