Risk Management and Insurance
Subject Overview
Risk Management and Insurance is the second Banking & Insurance elective, covering how organisations and individuals identify, evaluate, and mitigate risk through insurance. You'll cover the concept and types of risk, techniques for identifying and evaluating risk, the fundamentals of insurance contracts and principles, and close with the regulatory framework of insurance under the IRDA and how insurance premiums and losses are actually computed. This is a 6-credit elective paper across 4 units, complementary to Insurance Services Management from Semester 5.
Unit-wise Syllabus
4 units — click WhatsApp below to get the full notes for each
Unit 1: Concept of risk & risk management
Risk and uncertainty, types and sources of risk, methods of handling risk, degree of risk, corporate and personal risk management process, objectives and techniques of risk management, understanding the cost of risk
Unit 2: Identification & evaluation of risk
Tools and techniques for perceiving risk, methods for determining operative causes of peril, safety audits, risk avoidance and reduction methods, role of surveyors, retention of risk, captive insurance companies
Unit 3: Fundamentals of insurance
Definition and basic characteristics of insurance, requirements of an insurable risk, adverse selection, insurance vs. gambling vs. hedging, essentials and principles of insurance contracts, life, general, health, marine and automobile insurance
Unit 4: Regulatory framework & premium computation
Role, power and functions of the IRDA, composition and the IRDA Act 1999, control of malpractices and negligence, computation of insurance premium, loss assessment and control, exclusion of perils