IARM-P09

IARM-P09
PGDM 2009-11: Term VI

Insurance & Risk Management (IARM) (1. 5 credits)

Course Advisor: Prof. Chandan Kumar Parhi

Introduction: Man needs wealth as matter needs form. Money in fact is the fulcrum of our existence in these days of inevitable materialism. The income of fresh entrants into corporate sector has kept pace with or some times even outpaced development & resultant economic growth. Such wealth creation not withstanding, financial insecurity for managers as well as professionals has multiplied.

Course Objective: Unless financial security is provided to property and life through suitable instruments, uncertainty of life may result in drain of wealth by premature death, disability, diseases and loss of or damage to property- both moveable and immoveable. Undesirable awards by courts against liability suits may further cause huge outflow of cash bordering on bankruptcy. The course intends to acquaint the managers with all the risks associated with life property and liability along with ways for mitigating such losses.

By the end of the course, the student is expected to

1. Understand the broad spectrum of personal risks and the need for personal risk management.
2. Develop a broad understanding of insurance as a system of managing risks of property as well as life.
3. Appreciate the utility of various financial products providing financial security.
4. Utilize the knowledge gained to securitize life’s earnings -- past, present and future.
Session- wise Course Outline

Module A. Risk Management & Insurance

1. Risk Management & Insurance
Risk, peril & hazard, types of risk, Insurance-purpose, need ,basic characteristics, subject matter; , insurance as a social security tool, role of Insurance in nation building activities; adverse selection & hedging

Readings: Risk Management & insurance (Ch-1) by George E. Rejda

2. Risk Management Process
Meaning & objectives of risk management, Risk management process- personal & corporate risk management, corporate risk attitudes; Insurance as a method of risk transfer.

Readings: (i) Risk Management: Insurance Institute of India

(ii)Risk Management & insurance (Ch-1) by George E. Rejda

3. Enterprise Risk Management

Readings: Risk Management & Insurance: O.P. Gupta, HPH, 2010

Module B. Risk Management for Property Risks

4. & 5. Types of property exposed to fire risk, transit risk, accident & theft

Readings:www.irdaindia.org

Module C. Management of the risk of dying too early;

Risk of death, disability & disease

6. Need for life insurance, Human life value, Life Insurance products- term insurance, whole life, endowment, money back, ULIP,

Readings: Practice of life Insurance; Insurance institute of India

Module D. Managing the Risk of Living Too Long

7. Risk of old age: financial & health risks: Annuities & Pension

Readings:Pension & Reforms: IRDA Report 2001 from the book Insurance Products (including Pension Products) IIBF book page 232-245

Module E. Life & Health Actuarial Principles

8. Pricing Life insurance products

Readings: Life & health insurance Actuarial Principles, Black & Skipper, PHI Page 693-718

9. Insurance regulatory Framework; Readings: www.irdaindia.org

10. Paper presentations

Evaluations: End Term: 30 marks; Presentations: 10 marks; Quiz: 10 marks.

Created By: Debasis Mohanty on 11/15/2010 at 11:14 AM
Category: PGDM-II Doctype: Document

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