AKTU Insurance and Risk Management (BMBF405) Syllabus PDF – MBA (Banking & Financial Services) 4th Semester

Course Objectives

1. Understand the concepts of risk and uncertainty, classify different types of risks, assess levels of risk, and explain behavioural aspects of risk and economics of insurance.
2. Explain insurable and non-insurable risks and their implications in risk management decisions.
3. Analyze the role of risk management and insurance in economic development and as a tool for social security.
4. Evaluate managerial functions of risk management, risk management processes, and the functioning of insurance organizations.
5. Evaluate insurance contracts as effective tools for risk transfer and risk management.

Course Content

Module I: Concepts of Risk and Uncertainty (8 Hours)

Risk and Uncertainty Concepts; Meaning and Characteristics of Risk; Causes, Degree and Classification of Risk; Types of Risk; Insurable Risk and Non-Insurable Risk; Cost of Risk; Relationship between Risk and Economic Development;

Psychology and Attitude Towards Risk; Behavioural Aspects of Risk; Managing Risk and Uncertainty; Risk Measurement Techniques; Cash Flow at Risk (CFaR); Value at Risk (VaR).

Module II: Risk Management and Managerial Aspects (8 Hours)

Risk Management: Concept, Meaning, Evolution, Purpose, Scope and Importance; Objectives of Risk Management;

Role of Risk Management in Economic Growth and Business Sustainability; Risk Management Functions; Role and Responsibilities of Risk Manager; Risk Management Process; Risk Identification; Risk Assessment and Evaluation; Risk Response Strategies; Risk Control and Risk Financing; Risk Management Plan Administration; Risk Management in Global Economy; Future Perspectives of Risk Management.

Module III: Insurance and Risk Management (8 Hours)

Role of Insurance in Managing Risk; Meaning, Nature and Importance of Insurance; Purpose and Functions of Insurance; Classification of Insurance; Life Insurance and General Insurance; Insurance Production Process;

Relationship between Insurance and Risk; Insurance and Economic Development; Insurance as a Social Security Tool;

Determinants of Insurance Market Structure; Insurance Distribution Channels; Reinsurance: Meaning, Purpose, Importance and Forms of Reinsurance.

Module IV: Insurance Contract and Policy Management (8 Hours)

Insurance Contract: Meaning, Nature and Importance; Subject Matter of Insurance; Principles of Insurance Contract;

Essential Features of Insurance Contract as per Contract Act; Special Features of Insurance Contracts; Proposal Form and Documentation; Evidence and Supporting Documents; Payment of Premium; Policy Issuance Process; E-Insurance Policy; Insurance Repositories; Digital Transformation in Insurance Services.

Module V: Regulatory Compliance and Emerging Trends in Insurance Risk Management (8 Hours)

Regulatory Framework of Insurance Industry; Role of Insurance Regulatory and Development Authority of India (IRDAI);

Regulatory Compliance Requirements for Insurance Companies; Corporate Governance in Insurance Sector; Risk Management Practices in Insurance Organizations; Emerging Trends and Challenges in Insurance Risk Management;

InsurTech and Digital Insurance; Artificial Intelligence in Insurance Risk Assessment; Data Analytics in Insurance; Ethical Considerations and Social Responsibility in Insurance Industry.

Activities a. Case studies on insurance claims and risk management practices. b. Risk identification and assessment exercises. c. Calculation-based exercises on Value at Risk (VaR) and risk measurement. d. Analysis of insurance products and policy features. e. Study of IRDAI regulations and insurance reforms. f. Presentations on emerging trends in InsurTech and digital insurance. g. Role play on risk management decision-making. h. Comparative analysis of life and non-life insurance products.

Suggested Readings

1. Arunajatesan, S. & Viswanathan, T. R.; Risk Management and Insurance; Macmillan Publishers Ltd.
2. Dorfman, S. Mark; Introduction to Risk Management and Insurance; Prentice Hall.
3. Hampton, John J.; Essentials of Risk Management and Insurance; American Management Association.
4. Holyoake, Julia & Weipers, Bill; Insurance; Institute of Financial Services.
5. Patukale, Kshitiz; Insurance for Everyone; Macmillan India Ltd.
6. Rejda, G. E. & McNamara, M.; Principles of Risk Management and Insurance; Pearson Education.
7. Skipper, D. Harold & Kwon, W. Jean; Risk Management & Insurance; Wiley India.
8. Vaughan, E. T. & Vaughan, T.; Fundamentals of Risk Management and Insurance.
9. Harrington, Scott E. & Niehaus, Gregory R.; Risk Management and Insurance; McGraw-Hill Education.

Course Outcomes