MALLA REDDY ENGINEERING COLLEGE FOR WOMEN

180EPE14: RISK MANAGEMENT IN BANKING & INSURANCE

MBA II Year II Sem ELECTIVE SUBJECT FOR FINANCE L T P C 3

104

Course Objective: To understand the concepts of Risk Management, Banking ,Insurance

measurements and strategies using derivatives.

Course Outcome: Students will be able to understand a) Concepts of Risk Management, Banking &
Insurance b) Risk Management Measurement c) banking sector both public & private and its Futures
d) rules of Indian Insurance Industry & its role in Indian economy

Unit -1:

Introduction to Risk – Types of Risks facing Business and Individuals, Risk Management Process,
Risk Management Methods, Risk Identification and Measurement, Risk Management Techniques:
Non Insurance Methods.

Unit -2:

Insurance as a Risk Management Techniques Principles: Principle of Indemnity, Principle of

Insurable Interest, Principle of Subrogation, Principle of utmost good Faith, Requisites of Insurable
Risks, Requirements of an Insurance Contract, Distinguishes Characteristics of Insurance Contracts,
Role of Agents and Brokers.

Unit -3:

Banking & Non Banking Financial Corporation’s(Private & Public Sector): Features,
Objectives, Growth, Types, Scope, Role, Functions and Challenges of
BFCs&NBFCs.CommercialCooperativeBanks/IFCI/IRBI/IDBI/NABARD/SIDBI/SFC/
UTI/MFI/Insurance Companies).

Unit-4:

Indian Insurance Industry: Life Insurance, General Insurance – Growth, Development Role of
Insurance in the economy, Regulation of Indian Insurance Business.

Unit-5:

Risk Management and Shareholders Wealth, Risk Retention / Reduction Decision, Alternative
risks Management, Hedging with Derivative Contracts.

Suggested Readings:

1. Scott E. Harringam Gregory R. Nichaus: Risk Management & Insurance, TMH, 2009.

2. George E. Rejda: Principles of risk Management & Insurance, 9/e, Pearson Education, 2009.

Malla Reddy Engineering College for Women (Autonomous Institution-UGC, Govt. of India) 72
Master of Business Administration R-18
3. G.Koteshwar: Risk Management Insurance and Derivatives, Himalaya, 2008

4. Gulati: Principles of Insurance Management, Excel, 2009

5. James S Trieschmann, Robert E. Hoyt & David N. Sommer: Risk Management & Insurance,
Cengage, 2009.

6. Dorfman: Introduction to Risk Management and Insurance, 8/e, Pearson, 2009.

7. P.K.Gupta: Insurance and Risk Management, Himalaya, 2009.

8. Mark S.Dorfman: Risk Management and Insurance, Pearson, 2009.

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