M.B.

A
INSURANCE AND RISK MANAGEMENT
(REGULATIONS 2018)

CURRICULUM & SYLLABUS

(CHOICE BASED CERDIT SYSTEM)

KALASALINGAM ACADEMY OF RESEARCH AND EDUCATION

ANAND NAGAR, KRISHNANKOIL-626 126
Phone No.04563-289042
Fax No.04563-289322
Website: www.kalasalingam.ac.in

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 PROGRAMME:
MBA-INSURANCE AND RISK MANAGEMENT
VISION

To be a world class business school providing value based professional excellence

MISSION

To create an excellent teaching and learning environment to impart quality education by

focusing on nurturing innovation, entrepreneurship, research and ethics by enhancing
their self-confidence, creative skills and professional expertise thereby developing leaders
of competence, conscience, and compassion

PROGRAMME EDUCATIONAL OBJECTIVES

Graduates will have adequate skill for keen analysis with specialized risk
PEO1
management, project management and modeling focus.
To develop professional competency among graduates to do research and
PEO2
lifelong learning for continuous growth and development.
To transform graduates into responsible citizens and leaders to create positive
PEO3 impact on business through ethical, value based and environment friendly
business solutions.

PROGRAM SPECIFIC OUTCOMES

PSO1 Graduates should exhibit their knowledge of actuarial principles.

Graduates should demonstrate their critical-thinking, analytical and problem
PSO2
solving skills.
PSO3 Graduates should manifest their leadership qualities.
PSO4 Graduates should be able to work in multidisciplinary teams.

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 PROGRAMME OUTCOMES

Business Knowledge:
An understanding of management and analytical skills using statistical tools and data
PO1
mining techniques in fields of Finance, Insurance with special focus on risk
management and therefore enabling enriched global business impact.
Critical Thinking and Problem Analysis:
PO2 Ability to Identify, Formulate and Analyze the contemporary issues in the business
process by critical thinking to identify the best strategic alternatives.
Conduct investigations of complex Problems:
Conduct investigation using appropriate research design and analyze the qualitative
PO3
and quantitative data by suitable research tools and techniques to solve the complex
problem with detailed interpretation.
Strategic Decision Making and solutions:
PO4 Apply technology and Brain Storm the innovative ideas to enhance organizational
efficiency and choose the optimal strategic decision for obtaining effective solutions
Modern tool usage:
Ability to utilize the advanced contemporary tools and techniques for predictive analysis
PO5
and modeling of the complex business issues to sustain and flourish in the dynamic
business environment.
Entrepreneurial Skills
PO6 Ability to business ideas, develop business plans, understand regulatory requirements,
and locate sources of finance to start, manage and sustain new business ventures
Environment and sustainability:
Ability to understand the business environment and develop legal and ethical strategic
PO7
plan that align with societal and environmental context for the purpose of sustainable
development in the business.
Professional Integrity:
PO8 Ability to address the social, legal, cultural diversity issues through ethical and value
based.
Team work:
PO9
Ability to function effectively on multi-disciplinary teams with extensive participation
Communication:
PO10 Ability to communicate effectively and clearly, to comprehend, write, prepare and make
effective presentations.
Global Business Opportunities:
Ability to demonstrate the management principles and understand the diverse
PO11 opportunities in the management functions and apply those as an Entrepreneur,
Projects, field Work, Consultancy, and work in the Multidisciplinary business
environment.
Life-long learning:
Ability to empathize the impact of changing management concepts and thoughts on
PO12
society and create awareness of contemporary issues through independent and lifelong
learning.

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 MASTER OF BUSINESS ADMINISTRATION-IRM
(REGULATIONS 2018)
SCHEME OF INSTRUCTIONS
Course Code Course Title L T P C
MBA18R5101 Accounting for Management 3 1 0 4
MBA18R5102 Economic Analysis for Business 4 0 0 4
MBA18R5104 Organizational Behavior 3 0 0 3
MBA18R5105 Principles of Management 3 0 0 3
MAS18R5101 Actuarial Probability and Statistics 3 1 0 4
MAS18R5102 Actuarial Financial Mathematics 3 1 0 4
MAS18R5103 Financial Engineering and Loss Reserving 3 1 0 4
MAS18R5104 Principles of Banking & Insurance 3 0 0 3
MBA18R5109 Applied Operation Research 3 1 0 4
MBA18R5110 Business Research Methods 3 0 0 3
MBA18R5111 Financial Management 3 0 0 3
MBA18R5112 Human Resource Management 3 0 0 3
MAS18R5105 Actuarial Financial Reporting 3 0 0 3
MAS18R5106 Life and Health contingencies 3 0 0 3
MAS18R5107 Survival Model Analysis 3 0 0 3
MAS18R5108 Risk Model Analysis 3 0 0 3
MBA18R5181 Data Analysis and Business modeling 0 0 4 2
MBA18R5201 Business Ethics-Corporate Governance- 3 0 0 3
Corporate Social Responsibility
MBA18R5202 Strategic Management 3 0 0 3
MAS18R5201 Actuarial Risk Management Practice 3 0 0 3
Modelling and Communication 3 0 0 3
MAS18R5202
Practice
MAS18R52xx Elective - I 4 0 0 4
MAS18R52xx Elective - II 4 0 0 4
MAS18R52xx Elective - III 4 0 0 4
MAS18R52xx Elective - IV 4 0 0 4
MBA18R5299 Project Work 0 0 20 10
Practical Laboratory
MBA18R5282 Professional Skill Development 0 0 4 2
MBA18R5298 Industrial Training 0 0 12 6
TOTAL NUMBER OF CREDITS = 102
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Industrial Training
Industrial Training–The training report along with the company certificate should
be submitted within the two weeks of their opening date of 3rd. The training report
should be around 40 pages containing the details of training undergone, the
departments wherein he was trained with duration (chronological diary), along with the
type of managerial skills developed during training. The training report should be sent
to the Controller of Examinations by the HOD through the Program Coordinator, before
the last working day of the 3rd.
LIST OF ELECTIVES
Course Code Course Title L T P C
GROUP I (INSURANCE SERVICES)
MAS18R5204 Pension and Other Employee Benefits 4 0 0 4
MAS18R5205 Business awareness module 4 0 0 4
MAS18R5206 FOREX management 4 0 0 4
MAS18R5207 Financial Economics 4 0 0 4
MAS18R5208 Asset and Liability Management 4 0 0 4
MAS18R5209 Insurance Product Design & Futures 4 0 0 4
GROUP II (FINANCE & BANKING SERVICES)
MBA18R5214 Financial Derivatives 4 0 0 4
MBA18R5215 Financial Institution and Services 4 0 0 4
MBA18R5218 Micro Finance 4 0 0 4
MBA18R5220 Security Analysis and Portfolio Management 4 0 0 4
MBA18R5266 Financial Inclusion 4 0 0 4
MBA18R5269 International Banking : Legal and Regulatory Aspects 4 0 0 4

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 CATEGORY OF COURSES WITH NON-CGPA CREDIT
Non- Minimum
Sl.
Group Sub. Code Category CGPA Credit
No.
Credit Requirements
1 NCG18R501 Paper Presentation in Conferences 1
Participation in Entrepreneurship 1
2 NCG18R502
Programs
Group-I
Participation in any event in 1
3 NCG18R503
Management Meet
4 NCG18R504 Certification Courses 1
5 NCG18R601 Industrial Lectures 1
6 NCG18R602 Preparation of Business Plan 1 03
Group-II
7 NCG18R603 Research Based Projects 1
8 NCG18R604 Publications in Journal 1
9 NCG18R701 Sports 1
10 NCG18R702 Voluntary Services 1
Group-
11 NCG18R703 Extra Curricular Activities 1
III
International Languages (French / 1
12 NCG18R704
German / Japanese etc.)
Total 12

*Note: Students have to take at least one course from each of the groups 1-3.

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 I
L T P Credit
MBA18R5101 ACCOUNTING FOR MANAGEMENT
3 1 0 4
Pre-requisite: Nil
Course Category: Program Core Course Type: Theory
Course Objective(s):
The objective of the course is to acquaint the students with the language of
Accounting and to develop in them the ability to evaluate and use accounting data as an
aid to decision making. The main purpose is to assist the students in developing skills in
Problem solving and decision making in the financial area. Emphasis is laid on analysis
and utilization of financial and accounting data for planning and control.

Course Outcome(s):
After completing this course, the student will be able to:
CO1: Understand the role of different branches of accounting i.e. Financial Accounting,
Cost Accounting and Management Accounting and able to generate final account
statements by applying GAAP.
CO2: Analyse and interpretation of income statement and Balance sheet.
CO3: Analyze the Financial Statements through various tools like ratio analysis, fund
flow and cash flow etc
CO4: Prepare the cost statement; Apply budgetary control and Cost Volume Profit
analysis tools as a controlling technique
CO5: Evaluate the overheads and other costs across various products.

Mapping of Course Outcome(s):

CO / PO
PO 1 2 3 4 5 6 7 8 9 10 11 12
CO1 S S M
CO2 M
CO3 M L
CO4 S L
CO5 L

Unit 1: Introduction and Basics of Accounting 12 Hours

Introduction - Generally Accepted Accounting Principles- Concepts and Conventions of
Accounting - Types of Accounting – Book keeping - An Overview of Journal, Ledger, Trial
Balance.

Unit II: Financial Accounting 12 Hours

Preparation of Trading Account, Profit and Loss Account and Balance Sheet -
Depreciation - Straight line and Diminishing Balance Method

Unit III: Financial Statements 12 Hours

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Financial Statements analysis - Objectives - Techniques of Financial Statement Analysis:
Ratio analysis - Profitability Ratios, Solvency Ratios, Liquidity Ratios, and Turnover
Ratios - Fund Flow statement - Cash Flow Statement (Basic problems)

Unit IV: Budget and Budgetary Control 12 Hours

Budget and Budgetary Control – Types of Budget: Cash Budget, Functional Budgets and
Flexible Budget – Zero based budgeting

Unit V Cost Accounting 12 Hours

Cost Accounting: Meaning - objectives- Classification and Elements of Costs, Cost
Concepts Preparation of Cost Sheet - Marginal Costing - Application of Marginal Costing
Techniques in Managerial Decision Making: Cost Volume Profit Analysis, Break Even
Analysis and Margin of safety.

Text Book(s):
1. Narayanaswamy.R, Financial Accounting: A Managerial Perspective, 5th Edition,
Prentice Hall India Pvt., Ltd., New Delhi. 2016.
2. N.Ramachandran, Ram Kumar Kakani, “Financial Accounting for Management”, 4th
Edition, New Delhi: Tata McGraw Hill, 2015
3. Karen W. Braun, Wendy M. Tietz, Managerial Accounting, 4th Edition, Pearson
Publications, 2014
Reference(s):
1. Khan.M.Y and P.K.Jain, Management Accounting, 7th edition, Tata McGraw Hill
publishing company Ltd., New Delhi, 2016.
2. Pillai.R.S.N and Bagavathi, Management Accounting, Revised edition, S.Chand and
Co. Ltd., New Delhi, 2010.
3. Don Hansen, Maryanne Mowen, Management Accounting, 8th Edition, Cengage
Learning, Delhi, 2007.

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 L T P Credit
MBA18R5102 ECONOMIC ANALYSIS FOR BUSINESS
4 0 0 4
Pre-requisite: Nil
Course Category: Program Core Course Type: Theory
Course Objective(s):
This course is designed to impart knowledge of the concepts and principles of
Economics, which govern the functioning of a firm/organisation under different market
conditions. It further aims at enhancing the understanding capabilities of students about
macro–economic principles and decision making by business and government.

Course Outcome(s):
After completing this course, the student will be able to:
CO1: Examine basic economic problems facing society and apply theory to practical
problems in a business context in order to obtain optimum solution.
CO2: Explore the business cycle implications and determine the interaction of demand
and supply in the marketplace
CO3: Analyze the interrelationships between economic variables and evaluate the major
economic aggregates and how they are measured
CO4: Design competition strategies, including costing, pricing, product differentiation,
and market environment according to the natures of products and the structures of
the markets.
CO5: Intends the understanding of various economics, social, legal and other factors that
influence business in India.

Mapping of Course Outcome(s):

CO / PO
PO 1 2 3 4 5 6 7 8 9 10 11 12
CO1 S L M
CO2 M S S
CO3 L S
CO4 L M
CO5 M

Unit 1: Introduction to Economics and Demand Analysis 12 Hours

Introduction to Economics Concepts in Decision-Making – Distinction Between Micro
And Macroeconomics - Scope of Managerial Economics and Other Disciplines – Factors
Influencing Managerial Decisions - Demand analysis: Types, Determinants, Elasticity
And Its Applications, Demand Function, Law Of Demand And Demand Forecasting.

Unit II: Cost and Price Analysis 12 Hours

Cost Analysis: Various Cost Concepts and Its Types - Cost Functions - Economies of
Scale - Cost Output Relationship in Short and Long Period, Supply Analysis - Pricing
Analysis: Market Structures, Price Determination Under Different Market Situations,
Price Discrimination, Various Pricing Methods And Break Even Analysis.
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Unit III:Macro Economic Issues 12 Hours
Circular Flow Of Income - National Income – Business Cycle – Inflation - Economic
Systems - Industrial Policy- Fiscal Policy - Unemployment – Indian Economic Planning -
Current National Economic Trends

Unit IV: Financial Markets 12 Hours

Capital Market – Money Market – Debt Market – Derivatives Market- Credit Market -
Foreign Exchange Market – Overview Of Instrument And Players – Central Bank, World
Bank And Commercial Banks And Their Functions, Stock Exchange And Role Of SEBI -
Monetary Policy.

Unit V: International Business Environment 12 Hours

Globalization- Forces, Meaning, Dimensions and Stages - Introduction to International
Trade Theories - Balance of Payment - The Role of Trade Policy - General Agreement on
Trade and Tariffs (GATT) and World Trade Organization(WTO) – Trade Blocks – Tariff and
Non- Tariff Barriers – EXIM Policy – Performance of Indian Economy in external sector.
Economic Integration (FTA, PTA, EU, Custom Union, EEC),Macro economic Variable,
Foreign Exchange market and Exchange rate.

Text Book(s):
1. K.Aswathappa, Essentials of Business Environment, 12th, Revised Edition,
Himalaya Publishing House, Mumbai, 2015.
2. Francis Cherunilam, Business Environment – Text and cases (Business
Environment), Revised Edition, Himalaya Publishing House, Mumbai, 2015.

Reference(s):
1. Gupta, G.S. Macroeconomics, Theory and Applications, 4th edition, Tata McGraw-
Hill publishing company Ltd., New Delhi, 2015.
2. Dwivedi D.N., Macroeconomics: Theory and Practice: Theory & Practice, 4th edition,
Tata McGraw-Hill publishing company Ltd., New Delhi, 2015.
3. Gaurav Datt, Ashwani Mahajan, Indian Economy, 70th Edition, S Chand Publishers,
2015.

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 L T P Credit
MBA18R5104 ORGANIZATIONAL BEHAVIOUR
3 0 0 3
Pre-requisite: Nil
Course Category: Program Core Course Type: Theory

Course Objective:
The course aims at provide an overview of theories and practices in organizational
behavior in individual, group and organizational level in the changing global scenario. It
focuses on the basic roles, skills and functions of management, with special attention to
managerial responsibility for effective and efficient achievement of goals.

Course Outcome(s):
After completing this course, the student will be able to:
CO1: Understand the historical backdrop and fundamentals of organizational behaviour
CO2: Understand the various behaviors and characteristics of an individual
CO3: Understand and learn the effective Group Behavior for better in organizational
settings.
CO4: Understand and learn the effective interpersonal, team building, leadership skills
in order to get familiarized to adjust better in organizational settings..
CO5: Develop understanding about emerging concepts in management thought and
philosophy in order to successfully apply inside the organization.

Mapping of Course Outcome(s):

CO / PO
PO 1 2 3 4 5 6 7 8 9 10 11 12
CO1 S M L S L
CO2 S M L
CO3 S L M
CO4 L M
CO5 M L M

UNIT I FOCUS AND PURPOSE 05 Hours

Definition, need and importance of organizational behaviour – Nature and scope – Frame
work – Organizational behaviour models.

UNIT II INDIVIDUAL BEHAVIOUR 12 Hours

Personality – types – Factors influencing personality – Theories – Learning – Types of
learners – The learning process – Learning theories – Organizational behaviour
modification.
Misbehaviour – Types – Management Intervention. Emotions - Emotional Labour –
Emotional Intelligence – Theories. Attitudes – Characteristics – Components – Formation
– Measurement- Values. Perceptions – Importance – Factors influencing perception –
Interpersonal perception- Impression Management. Motivation – Importance – Types –
Effects on work behavior.
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UNIT III GROUP BEHAVIOUR 09 Hours
Organization structure – Formation – Groups in organizations – Influence – Group
dynamics – Emergence of informal leaders and working norms – Group decision making
techniques – Team building - Interpersonal relations – Communication – Control.

UNIT IV LEADERSHIP AND POWER 09 Hours

Meaning – Importance – Leadership styles – Theories – Leaders Vs Managers – Sources of
power – Power centers – Power and Politics.

UNIT V DYNAMICS OF ORGANIZATIONAL BEHAVIOUR 10 Hours

Organizational culture and climate – Factors affecting organizational climate –
Importance. Job satisfaction – Determinants – Measurements – Influence on behavior.
Organizational change – Importance – Stability Vs Change – Proactive Vs Reaction
change – the change process – Resistance to change – Managing change. Stress – Work
Stressors – Prevention and Management of stress – Balancing work and Life.
Organizational development – Characteristics – objectives –. Organizational effectiveness
Developing Gender sensitive workplace

Text Books :
1. Stephen P. Robins, Organisational Behavior, PHI Learning / Pearson Education,
Edition 17, 2016 (Global edition)
2. Fred Luthans, Organisational Behavior, McGraw Hill, 12th Edition,

REFERENCES:
1. Nelson, Quick, Khandelwal. ORGB – An innovative approach to learning and
teaching. Cengage, 2nd edition. 2012
2. Jerald Greenberg, Behaviour in Organization, PHI Learning. 10th edition. 2011
3. Mc Shane & Von Glinov, Organisational Behaviour, 4th Edition, Tata Mc Graw Hill,
2007.
4. Udai Pareek, Understanding Organisational Behaviour, 3rd Edition, Oxford Higher
Education, 2011
5. Ivancevich, Konopaske & Maheson, Oranisational Behaviour & Management, 7th
edition, Tata McGraw Hill, 2008.

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 L T P Credit
MBA18R5105 PRINCIPLES OF MANAGEMENT
3 0 0 3
Pre-requisite: Nil
Course Category: Program Core Course Type: Theory

Course Objective(s):
The course aims at providing fundamental knowledge and exposure of the
concepts, theories and practices in the field of management. It focuses on the basic roles,
skills and functions of management, with special attention to managerial responsibility
for effective and efficient achievement of goals.The course aims to provide an
understanding of basic concepts, theories and techniques in the field of human
behaviour at the individual, group and organizational levels in the changing global
scenario.

Course Outcome(s):
After completing this course, the student will be able to:
CO1: Describe and discuss the elements and evolution of effective management.
CO2: Discuss and apply the planning process and Decision Making process for
improvement.
CO3: Describe various organizational structure and functions of Organizations.
CO4: Describe various theories related to the development of leadership skills, motivation
techniques, team work and effective communication.
CO5: Describe various controlling techniques in the orgnizations

Mapping of Course Outcome(s):

CO / PO
PO 1 2 3 4 5 6 7 8 9 10 11 12
CO1 S S M L L L
CO2 S M S
CO3 L S M L
CO4 L M M
CO5 M L S

UNIT I INTRODUCTION TO MANAGEMENT 09 Hours

Organization- Management- Role of managers- Evolution of management thought-
Organization and the environmental factors- Managing globally- Strategies for
International business.

UNIT II PLANNING 09 Hours

Nature and purpose of planning- Planning process- Types of plans- Objectives- Managing
by Objective (MBO) strategies- Types of strategies – Policies – Decision Making- Types of
decision- Decision making process- Rational decision making process- Decision making
under different conditions.
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UNIT III ORGANISING 09 Hours
Nature and purpose of organizing- Organization structure- Formal and informal groups/
organization- Line and staff authority- Departmentation- Span of control- Centralization
and decentralization- Delegation of authority- Staffing- Selection and Recruitment-
Orientation- Career development- Career stages- Training- Performance appraisal
UNIT IV DIRECTING 09 Hours
Managing people- Communication- Hurdles to effective communication- Organization
culture- Elements and types of culture- Managing cultural diversity.

UNIT V CONTROLLING 09 Hours

Process of controlling- Types of control- Budgetary and non-budgetary control
techniques- Managing productivity- Cost control- Purchase control- Maintenance control-
Quality control- Planning operations.

TEXT BOOKS:
1. Andrew J. Dubrin, Essentials of Management, Thomson Southwestern, 9th
edition,2012
2. Stephen P. Robbins, David A.De Cenzo and Mary Coulter, Fundamentals of
management, 9th edition, Prentice Hall of India, 2016.
3. Harold Koontz and Heinz Weihrich, Essentials of management: An International
&Leadership Perspective, 10th edition, Tata McGraw-Hill Education, 2015.
REFERENCES:
1. Don Hellriegel, Susan E. Jackson and John W. Slocum, Management- A competency-
based approach, Thompson South Western,11th edition, 2008.
2. Heinz Weihrich, Mark V Cannice and Harold Koontz, Management- A global
entrepreneurial perspective, Tata McGraw Hill, 12th edition, 2008.
3. Stephen P. Robbins, David A.De Cenzo and Mary Coulter, Fundamentals of
management, Prentice Hall of India, 2012.

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 ACTUARIAL PROBABILITY AND L T P Credit
MAS18R5101
STATISTICS 3 1 0 4
Pre-requisite: Nil
Course Category: Program Core Course Type: Theory

Course Objectives:
The aim of the Probability and Mathematical Statistics subject is to provide a
grounding in the aspects of statistics and in particular statistical modeling that are of
relevance to actuarial work.
Course Outcome:
CO1: To develop problem-solving techniques needed to accurately calculate probabilities.
CO2: To understand underlying assumptions for common probability distributions and
their usage
CO3: To apply problem-solving techniques to solving real-world events in continuous
distributions.
CO4: To apply selected probability distributions to solve problems.
CO5: To determine the central limit theorem which is hard to overstate; indeed it is the
reason that many statistical procedures work.
Mapping of Course Outcome(s):
CO / PO
PO 1 2 3 4 5 6 7 8 9 10 11 12
CO1 S S M L L L
CO2 S M S
CO3 L S M L
CO4 L M M
CO5 M L S

Unit-I : Measures of Central Tendency and Probability: 12 Hours

Grouped Frequency Distribution – Stem and Leaf Diagrams – Line Plots – Cumulative
Frequency Tables –Measures of Location – The Mean – The Median – The Mode –
Measures of Spread – The Standard Deviation – Moments – The Range – The Interquartile
Range – Symmetry and Skewness (Bowley’s, Pearson’s & moments) – Box Plots –
Probability – Definition – Basic properties – Addition rule for probability – Conditional
probability definition – Sample Space and Events - Venn Diagrams and the Algebra of
Events - Axioms of Probability Derivation of Bayes’ theorem for events – Probabilities for
situations involving independence.

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UNIT-II : Random Variables: 12 Hours
Random Variables: Discrete Random Variables – Random Variables – Probabilities –
Probability Functions – Cumulative Distribution Functions – Continuous Random
Variables – Definition – Probability Density Function – Cumulative Distribution Function
– Expected Values – Mean – Variance and Standard Deviation – Linear Functions of X –
Moments – Important Discrete Distributions – Uniform Distribution – Bernoulli
Distribution – Binomial Distribution – Geometric Distribution – Negative Binomial
Distribution – Hyper Geometric Distribution – Poisson Distribution – Important
Continuous Distributions – Uniform Distribution– Exponential Distribution - Gamma
Distribution – Beta Distribution – Normal Distribution – Functions of a Random
Variables – Discrete Random Variables – Continuous Random Variables.

Unit-III Generating Functions: 12 Hours

Probability Generating Functions – General Formula– Important Examples – Evaluating
Moments – Moment Generating Functions – General Formula – Finding Moments – Use of
Moment Generating Functions – Important Examples – Cumulate Generating Functions –
Linear Functions.

UNIT-IV Joint Distributions: 12 Hours

Joint Probability (Density) Functions – Discrete Case – Continuous Case – Marginal
Probability (Density) Functions – Discrete Case – Continuous Case – Conditional
Probability (Density) Functions – Continuous Case – Independence of Random Variables
– Discrete Case – Continuous Case – Functions of Random Variables– Expectations of
Functions of Two Variables – Expectations – Expectation of a Sum – Expectation of a
Product – Covariance and Correlation Coefficient – Useful Results on Handling
Covariance – Variance of a Sum – Using Generating Functions to Derive Distributions of
Linear Combinations of Independent Random Variables - Probability Generating
Functions – Using Probability Generating Functions to Derive Relationships among
Variables – Moment Generating Functions – Using Moment Generating Functions to
Derive Relationships Among Variables. 2 Unit V:

UNIT-V Conditional Expectation: 12 Hours

The Conditional Expectation E [Y|X] – The Random Variable E [Y|X] – The Random
Variable V[Y|X] and the “E[V]+ V[E]” Result – Moment Generating Functions – Compound
Distributions – Moments of Compound Distributions – Generating Functions of
Compound Distributions – The Central Limit Theorem and its applications – Definitions–
Practical Uses – Normal Approximation for Binomial Distribution, Poisson Distribution,
Gamma Distribution – The Continuity Correction – Examples.

Text Book
1. Study Material from Institute of Actuaries of India, Mumbai
(The Professional body for Actuarial Studies in India) Subject Code: CT3 – Probability and
Mathematical Statistics.
Reference
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 1. Freund E F John, Mathematical statistics, 6th edition, Prentice Hall International,
1999.
2. Probability Distributions – STPM Mathematics Book by KK LEE (2018)
3. Statistical Distributions with Applications and Parameter Estimates
4. Probability Theory Books by Y.A. Rozanov: 2013

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 L T P Credit
MBS18R5102 ACTUARIAL FINANCIAL MATHEMATICS
3 1 0 4
Pre-requisite: Nil
Course Category: Program Core Course Type: Theory
Course Objectives:
To Explore the fundamental concepts of Financial Mathematics and their relevance to the
field of Actuarial Science
Course Outcome:
CO1: To handle the interest rates to find out the present and accumulated value with
Actuarial tools and notations.
CO2: To provide knowledge on discounting and accumulation & sudden changes in
interest rates; this might be used in actuarial calculations.
CO3: To enrich the students knowledge in annuities (examples in real life situation)
where payments are increasing continuously.
CO4: To handle with more important transactions including loan schedules.
CO5: To evaluate the money value of financial instruments in different time period with
fixed interest securities.
Mapping of Course Outcome(s):
CO / PO
PO 1 2 3 4 5 6 7 8 9 10 11 12
CO1 S S M L L L
CO2 S M S
CO3 L S M L
CO4 L M M
CO5 M L S

UNIT I: Cash flow Model: Cash Flow Process 12 Hours

The Time Value of Money-Present Values, Simple Discount, and Investing Over a Period.
Interest Rates: Nominal Rate of Interest – Accumulation Factors – Principles of
Consistency, The Force of Interest – The Basic Compound Interest Functions – Interest
Payable pthly. Real and money rates of interest: Definition of real and money interest
rates Usefulness of real and money interest rates.

UNIT II: Discounting and Accumulation: 12 Hours

Present Values of Cash flows – Discrete Cash flows, Continuous Cash Flows – Valuing
Cash Flows – Constant Interest Rates, Sudden Changes in Interest Rates – Interest
Income.

UNIT III :Level Annuities: Present Values 12 Hours

Payments Made in Arrear, Payment Made in Advance – Accumulations – Perpetuities –
Continuously Payable Annuities – Annuities Payable pthly: Perpetuities Deferred and
Increasing Annuities – Annual Payments – Continuously Payable Annuities- Varying

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Annuities – Annual Payments – Continuously Payable Annuities Relationship –
Decreasing Annuities – Special Cases – Irregular Payments – Sudden Changes in Interest
Rates.

UNIT IV: Equation of Value: 12 Hours

The Equation of Value and the Yield on the Transaction– Solving for an Unknown
Quantity – Uncertain Payment or Receipt – Loan Schedules: Calculating the Capital
Outstanding – Introduction, the Theory and the Retrospective Loan Calculation –
Calculating the Interest and Capital Elements – The Loan Schedule – Installment Payable
More Frequently than Annually.

UNIT V: Investments: Introduction 12 Hours

Fixed interest government borrowings – fixed interest government bonds, cash flows –
government bills – fixed interest borrowings by other bodies – convertibles – property –
derivatives – future, range of futures, clearing house, margin, bond futures, short
interest futures, stock index futures – options, swaps – interest rate swaps, currency
swaps.

TEXT BOOKS:
1. The Study Material from Institute of Actuaries of India, Mumbai (The Professional
body for Actuarial Studies in India) Subject Code : CT1 - Financial Mathematics.
2. Williams R.J. (2011) : Introduction to Mathematics of Finance
REFERENCES:

1. Financial Mathematics for comprehensive Treatment, by Giuseppe Campolieti

Roman N. Markov - 2014
2. Stochastic Interest rates by Daragh Mclnerney (2015), Tomasz Zastawniak.
3. The theory of interest Stephen G. Kellison Mc Graw-Hill Irwin,2014. 647 pages
4. McCutcheon, John J, Scott, William F, An introduction to the Mathematics of
Finance, London, Heinemann, 1986.
5. M. V. Butcher, Cecil J. Nesbitt, Mathematics of compound interest, Ulrich's Books,
1971.
6. Jonathan.E Ingersoll,Theory of financial decision making, Rowman & Littlefield,
1987. 4. Kellison, Stephen G, The theory of interest, 2nd edition, Irwin, 1991.

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 FINANCIAL ENGINEERING AND LOSS L T P Credit
MAS18R5103
RESERVING 3 1 0 4
Pre-requisite: Nil
Course Category: Program Core Course Type: Theory
Course Objectives:
The aim of the Financial Engineering and Loss Reserving subject is to provide a
grounding in the principles of modelling as applied to actuarial work – focusing
particularly on stochastic asset liability models and the valuation of financial derivatives.
These skills are also required to communicate with other financial professionals and to
critically evaluate modern financial theories.
Course Outcome:
CO1: To analyze the financial market and Behavioral Economics
CO2: To provide knowledge on Measuring Investment Risk
CO3: To enrich the student’s knowledge in Assets Management
CO4: To handle with more important in Liability valuation.
CO5: To provide knowledge about option Pricing
Mapping of Course Outcome(s):
CO / PO
PO 1 2 3 4 5 6 7 8 9 10 11 12
CO1 S S M L L L
CO2 S M S
CO3 L S M L
CO4 L M M
CO5 M L S

Unit-I : Theories of financial market behavior and Behavioral Economics

12 Hours
Rational expectations theory, rational choice theorem, Mathematical Representation of
utility function: Non-satiation, Risk aversion, risk neutrality and risk seeking, declining
or increasing absolute and relative risk aversion. Axioms for Utility theory and expected
utility theorem, Utility theory-Economic properties, Wealth, Investment opportunities,
Absolute dominance, First and Second-order dominance, Insurance problems.
Behavioural economics- Features of Kahneman and Tversky’s prospect theory critique
of expected utility theory. Context of financial markets -Framing, heuristics, bias (herd
instinct, anchoring and adjustment , self-serving bias, loss aversion, confirmation bias,
availability bias, familiarity bias), Bernartzi and Thaler solution to the equity premium
puzzle.

Unit-II :Measures of investment risk 12 Hours

Properties of risk measures, variance of return, Downside semi-variance of return,
Shortfall probabilities, Value at Risk (VaR) / Tail VaR, Risk and insurance companies,
moral hazard , adverse selection Stochastic interest rate of return models, Deterministic
model, Derive algebraically annual rates of return, mean, variance for single premium,
annual premium

Unit-III: Asset valuations 12 Hours

`
Mean-variance portfolio theory, Asset pricing models-Sharpe Lintner- Mossin Capital
Asset Pricing Model (CAPM), Assumption, Benefits, limitation, Issues. Investment Return-
Single Index Model, multifactor models and its types. Stochastic models for security
prices-Properties of standard Brownian motion or Wiener process, stochastic differential
equations and its solution - Ito integral, geometric Brownian motion ,Ornstein Uhlenbeck
process. Models of the term structures of interest rates, Approaches of pricing of zero-
coupon bonds and interest-rate derivatives (risk-neutral approach, state-price deflators)
for a general one-factor diffusion model for the risk-free rate of interest, Awarenes of
Vasicek, Cox-Ingersoll-Ross ,Hull- White models. Simple models for credit risk,
approaches to modeling credit risk: structural Models, reduced form models, intensity-
based models. Merton model, two-state model for credit ratings with a constant
transition intensity, Jarrow Lando- Turnbull model, stochastic transition intensity

Unit-IV: Liability valuations 12 Hours

Ruin theory- Calculate probabilities by Poisson process, simulation Run-off triangles-
Assumption, chain ladder method, Estimating outstanding claim amounts- claim
method, Bornhuetter-Ferguson method, Value basic benefit guarantees using simulation
techniques.

Unit-V: Option pricing 12 Hours

Option pricing, valuations, factors affects option prices, arbitrage ,complete market
.Upper and lower bounds for European and American call and put options, put-call
parity. risk-neutral pricing approach, Black-Scholes derivative pricing model, derive the
Black-Scholes partial differential equation both in its basic and Garman-Kohlhagen
forms, Terminology for the first, and where appropriate second, partial derivatives (the
Greeks) of an option price.

TEXT BOOKS:
1. The Study Material from Institute of Actuaries of India, Mumbai (The Professional
body for Actuarial Studies in India) Subject Code : CT8 - Financial Economics Or
CM2- Financial Engineering and Loss Reserving

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 L T P Credit
MAS18R5104 PRINCIPLES OF BANKING AND INSURANCE
3 0 0 3
Pre-requisite: Nil
Course Category: Program Core course type: Theory

Course Objective(s):
This course is designed to impart knowledge of the concepts and principles of banking
and insurance. It further aims at enhancing the understanding capabilities of students
about Acturail profession and banking systems
Course Outcome(s):
After completing this course, the student will be able to:

CO1 To know the basics of insurance mechanism.

CO2 The student will identify key elements of financial principles.
CO3 To introduce to the learner the basic elements that are involved in
actuarial profession.
CO4 The student will discuss the concepts of banking systems.
To develop information in mobile banking and electronic fund transfer
CO5
system.
Mapping of Course Outcome(s):
CO / PO
PO 1 2 3 4 5 6 7 8 9 10 11 12
CO1 M S
CO2 M S
CO3 S M
CO4 S M
CO5 M S

UNIT I Introduction to Insurance 09 Hours

Definitions of insurance –Origin and History-Significance of insurance –Tax benefits –
Factors influencing on insurance products –Features of insurance company –Nature of
insurance –Reforms in insurance sector –Recent developments–Fundamental principles
of insurance –Comparison of reinsurance and double insurance –Classification of
insurance –Coinsurance –Types of life insurance policies-–Policy conditions-Difference
between nomination and assignment –Policy conditions and Privileges –valuation –Life
fund –Method of distributing surplus .

UNIT II Financial principles 09 Hours

premium income and outgo investments - reserves - Surplus - profit - valuation of
surplus. Theory of rating - physical and Moral hazard – meaning of risk-types of risk-
objective of –risk management-risk - under writing – reinsurance-- concepts and
methods. –IRDA regulation

Unit III Actuarial profession-Overview 09 Hours

`
Introduction to profession and professionalism –Evolution of Actuarial profession –
Characteristics of the ideal profession -Characteristics of the Actuarial profession-
Actuary in Financial Services Industry: -Role of Actuaries:-Insurance Business-valuation
of liabilities-profit distribution-product design and product pricing-profit testing-
Assessment of solvency –General Insurance:-Premium rating –Reinsurance requirements
–Health insurance -Role of an appointed Actuary –Role of an Actuary-other areas -skills
required for the Actuary –Acquiring Knowledge about the Aspects of the Company where
Actuary is employed

UNITIV Banking 09Hours

Definition –Banking System –Role of Banks in Economic Development –Central Bank –
Functions –Credit Control Measures –Role of RBI in Regulatory and Controlling Banks.
E-Banking –meaning –E-Banking and Financial Services –Risk Management for E-
Banking.

UNIT V Mobile Banking 09Hours

meaning –Services –Security Issues –Telephone Banking –Mechanism –Telephone
Banking System –Call Centers .ATM –Features –Mechanism –Benefits –Shared ATM
Network in India –Digital Money –Mode of Issue and Implications –E-Money and
Monetary Policy –Policy issues of RBI –Electronic Funds Transfer System

TEXTBOOKS
Life Insurance Textbook Part A Learning material on Life insurance for the Institute of
Actuaries of Australia Part III Course 2A Life Insurance. Edition v1, June 2016© Institute
of Actuaries of Australia 2016.
1. Group Insurance, Skwire, Seventh Edition, 2016, ACTEX, (Group & Health
Extension ONLY)
2. Value at Risk: The New Benchmark for Managing Financial Risk, Jorion, P., Third
Edition, 2007, McGraw Hill
3. Financial Enterprise Risk Management, Sweeting, P., 2011, Cambridge Univ Press
REFERENCES
1. Principles of ManagementK. Anbuvelan 2016
2. Principles and Practice of ManagementT. N. Chhabra 2016

3. S. Nataraj and R. Parameswaran, “Indian Banking”, S.Chand & Sons Publisher,

New Delhi.
4. Principles of ManagementB. S. Moshal 1st edition 2009,reprint 2015
5. Risk Management - Principles and Techniquesby Uma Narang 1st Edition 2015

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 II
L T P Credit
MBA18R5109 APPLIED OPERATIONS RESEARCH
3 1 0 4
Pre-requisite: Nil
Course Category: Program Core Course Type: Theory
Course Objective(s):
This course is designed for individuals with a strong analytical background who seek a
professional business degree that utilizes their quantitative skills. Operational Research
(OR) uses mathematical techniques to tackle real-life decision problems. This field of
study can be applied to almost any business or scientific field. It utilizes observation,
modeling and diagnosis.
Course Outcome(s):
After completing this course, the student will be able to:
CO1: Students will be able to gain basic knowledge in Operations and linear programming.
CO2: Students will be able to examine the issues in the scheduling problems and find the
solution by using Optimization models.
CO3: The student would be able to examine the issues in the inventory planning and control
using EOQ and EBQ models.
CO4: The student would be able to apply the Decision and Game Theory concepts for scientific
study of strategic decision making.
CO5: The students will be able to gain the knowledge in Queuing theory and Reliability analysis
Mapping of Course Outcome(s):
CO/ PO PO PO PEO PEO PEO
PO1 PO2 PO3 PO4 PO5 PO6 PO7 PO8 PO9
PO 10 11 12 1 2 3
CO1 S M L L M M L M M M
CO2 S M L L L L M M L M M M
CO3 S M L L L L M L M M L M M M
CO4 S M L L L L M L M M L M M M
CO5 S M L L M L M M L M M M

UNIT I INTRODUCTION TO LINEAR PROGRAMMING (LP) 12Hours

Introduction to applications of operations research in functional areas of management.
Linear Programming-formulation, solution by graphical and simplex methods (Primal -
Penalty, Two Phase), Special cases. Dual simplex method. Principles of Duality.
Sensitivity Analysis.

UNIT II TRANSPORTATION MODELS 12Hours

Transportation Models (Minimising and Maximising Problems) – Balanced and
unbalanced Problems – Initial Basic feasible solution by N-W Corner Rule, Least cost and
Vogel‟s approximation methods. Check for optimality. Solution by MODI / Stepping
Stone method. Case of Degeneracy. Transshipment Models. Assignment Models
(Minimising and Maximising Problems) – Balanced and Unbalanced Problems. Solution
by Hungarian and Branch and Bound Algorithms. Travelling Salesman problem. Crew
Assignment Models.
`
UNIT III INTEGER PROGRAMMING AND INVENTORY MODELS 12Hours
Solution to pure and mixed integer programming problem by Branch and Bound and
cutting plane algorithms. Inventory Models – EOQ and EBQ Models (With and without
shortages), Quantity Discount Models.

UNIT IV GAME THEORYAND DECISION THEORY 12Hours

Game Theory-Two person Zero sum games-Saddle point, Dominance Rule, Convex Linear
Combination (Averages), methods of matrices, graphical and LP solutions. Decision
making under risk – Decision trees – Decision making under uncertainty.

UNIT V QUEUING THEORY AND REPLACEMENT MODELS 12Hours

Queuing Theory - single and Multi-channel models – infinite number of customers and
infinite calling source. Replacement Models-Individuals replacement Models (With and
without time value of money) – Group Replacement Models.

TEXT BOOKS

1. Hamdy A Taha, Introduction to Operations Research, 5th edition, Prentice Hall India,
New Delhi, 2014.
2. Paneerselvam R., Operations Research, Prentice Hall of India, Fourth Print, 2010.
3. N. D Vohra, Quantitative Techniques in Management,Tata Mcgraw Hill, 2010.
4.Pradeep Prabakar Pai, Operations Research - Principles and Practice, Oxford Higher
Education.

REFERENCES
1. G. Srinivasan, Operations Research – Principles and Applications, PHI, 2007.
3. Gupta P.K, Hira D.S, Problem in Operations Research, S.Chand and Co, 2007.
4. Kalavathy S, Operations Research, Second Edition, Vikas Publishing House, 2004.
5. Frederick & Mark Hillier, Introduction to Management Science – A Modeling and case
studies
approach with spreadsheets, Tata Mcgraw Hill, 2005.

`
 L T P Credit
MBA18R5110 BUSINESS RESEARCH METHODS
3 0 0 3
Pre-requisite: Nil
Course Category: Program Core Course Type: Theory
Course Objective(s):
To familiarize students with the types of business problems often faced by corporate
entities and to help them develop insights about basic concepts of research designs and
methodology aimed at solving business problems.
Course Outcome(s):
After completing this course, the student will be able to:
CO1: Comprehend the objectives of research and the steps involved in research process
in a practical manner.
CO2: Use different data collection methods and sampling design techniques for most
competent research work.
CO3: Analyze the collected and processed data with the help of statistical tools.
CO4: Applicability of suitable research methods and research tools would enable us to get
optimum solutions to the problem.
CO5: Generalize and interpret the data and prepare a research report.

Mapping of Course Outcome(s):

CO / PO
PO 1 2 3 4 5 6 7 8 9 10 11 12
CO1 M L S
CO2 S L
CO3 S S
CO4 M M L
CO5 M

Unit 1:Introduction to Research 09 Hours

Research: Meaning- Significance of Business Research –Research Process – Essentials of
A Good Research - Types of Research- Problem Selection And Definition - The Need For
Theoretical Frame Work–– Ethics In Research -Problems Encountered By Researchers In
India

Unit 2:Research Design, Measurement and Scaling 09 Hours

Research Design - Exploratory, Descriptive, causal research design. Fundamentals of
Measurement and Scaling: Measurement of Variables – Types of Scales - Development of
Scales – Reliability testing – Validity testing

Unit 3:Data Collection Methods and Sample Design 09 Hours

Data Collection Method: Primary Data Collection Methods - Guidelines For Questionnaire
Design – Secondary Sources of Data Collection - Special Data collection Methods.
Sampling Techniques: Probability and Non-Probability Sampling Methods,
Determination of Sample Size, Development of Hypothesis and Testing- Data preparation
`
Unit 4: Data Analysis 09 Hours
Measures of Central Tendency – Measures of Dispersion - Parametric and Non
parametric Techniques. Hypothesis Testing - Chi-Square – Correlation – Regression -
Multiple Regression– Discriminate Analysis - Factor Analysis – Cluster Analysis And
Conjoint Analysis- Application Of SPSS Package.

Unit 5:Report Writing 09 Hours

The Purpose Of Written Report – Basics Of Written Reports - The Integral Parts Of A
Report – The Title Of A Report - Table Of Content, The Synopsis, The Introductory
Section, Method Of Sections Of A Report, Result Section – Discussion Section –
Recommendation And Implementation Section- Oral Presentation -Writing A Research
Proposal And Research Articles.

Text Book(s):
1. Kothari C.R., Research Methodology, 3nd edition, New Age International Private, Ltd,
New Delhi, 2017
2. Donald Cooper, Boca Rator and Pamela Schindler, Business Research Methods, 12th
edition, Tata McGraw Hill, New Delhi, 2015.
Reference(s):
1. William G Zikmund, Business Research Methods, 8th Edition, Cengage Learning,
Delhi, 2015.
2. Naresh K.Malhotra Marketing Research: An Applied Orientation, 7th edition,
Prentice Hall, 2015.
3. Rajendra Nargundkar, ““Marketing Research, Text and Cases”, 3rd edition New
Delhi: Tata McGraw Hill Publishing Company Limited, 2015.

`
 L T P C
MBA18R5111 FINANCIAL MANAGEMENT
3 0 0 3
Prerequisite: Basic knowledge in Accounting
Course Category : Program Core Course Type : Theory

Course Objective(s):
To familiarize students to understands the operational nuances of a Finance Manager
and comprehend the technique of making decisions related to finance function

Course Outcome
Upon completion of the course students are able to
CO1: Demonstrate the different financing decision and Estimate the value of different
financial instruments
CO2: Formulate the optimum Capital Structure by choosing appropriate source of
finance
CO3: Estimate cash flows and make capital budgeting decisions under both certainty
and uncertainty
CO4: Construct dividend policy of a firm by analyzing the factors influencing the
dividend decision
CO5: Assess working capital needs of the firm and arrange short-term financing

CO and PO MAPPING
.S. No. CO/PO PO1 PO2 PO3 PO4 PO5 PO6 PO7 PO8 PO9 PO10 PO11 PO12

1. CO1 H M

2. CO2 H H M M
3. CO3 H H M H H M
4. CO4 M H H H
5. CO5 H H M

H - Strong Correlation, M – Moderate Correlation, L - Low Correlation

UNIT 1:FOUNDATIONS OF FINANCE 09 Hours

Nature of financial management – scope of finance function, objectives of firm and goals
of finance function - concepts of value of return, valuation of bonds and shares

UNIT I1:INANCING DECISION 09 Hours

Sources of finance – short-term and long term - Cost of capital - Financial and Operating
leverage, capital structure theories and policy

UNIT III :INVESTMENT DECISION 09 Hours

Capital budgeting - Process, methods - Cash flow determination - Risk analysis in capital
budgeting

UNIT 1V :DIVIDEND DECISION 09 Hours

Dividend Decision - dividend theories, dividend policies, and practices - financial
planning and strategy .Financial Distress prediction model

UNIT V:LIQUIDITY DECISION 09 Hours

`
Working capital management – Concepts, Determinants Accounts receivables
management; - Inventory management - Cash management - Working capital finance:
trade credit, bank finance, commercial papers

TEXT BOOKS
1. Pandey, I.M., Financial Management, 11th edition, Vikas Publishing House Pvt.
Ltd., New Delhi , 2015.
2. Khan M.Y. and Jain P.K, Financial Management, Text, Problems and Cases, 7th
edition, Tata McGraw Hill publishing company Ltd., New Delhi, 2017.

REFERENCES
1. AswathDamodaran, Applied Corporate Finance: A User’s Manual. John Wiley and
Sons, Inc., 2005.
2. James C. Vanhorne, Financial Management and Policy, 12th edition, Pearson
Education Asia (low priced edition), 2012.
3. Brearly and Myers, Principles of Corporate Finance, 7th Edition, McGraw Hill,
2002.
4. William Megginson, Principles of Corporate Finance, 2nd Edition, Cengage
Learning, Delhi, 2008.

`
 L T P Credit
MBA18R5112 HUMAN RESOURCE MANAGEMENT
3 0 0 3
Pre-requisite: Nil
Course Category: Program Core Course Type: Theory
Course Objective(s):
To acquaint students with different subsystems of Human Resource Management and
their importance. The students would also be able to appreciate the importance and
applications of industrial relations and different legislations related the same.
Course Outcome(s):
After completing this course, the student will be able to:
CO1: To provide knowledge about management issues related to staffing, training,
performance, compensation, human factors consideration and compliance with
human resource requirements.
CO2: Designing the appreciate role of HR specialist for implementing HRM policies.
CO3: Managing the manpower to motivate and attract them to retain in the organization.
CO4: Develop the responsibility of employer and legal system to manage the employment
relation.
CO5: Develop the Employment Relations and Knowledge to resolve the issues.
Mapping of Course Outcome(s):
CO / PO
PO 1 2 3 4 5 6 7 8 9 10 11 12
CO1 S M
CO2 L S
CO3 M S
CO4 M S
CO5 S M

Unit 1:Perspectives in Human Resource Management 09 Hours

Evolution of human resource management – The importance of the human factor –
Challenges – Inclusive growth and affirmative action -Role of human resource manager –
Human resource policies – Computer applications in human resource management –
Human resource accounting and audit.

Unit 2:The Concept of Best Fit Employee 09 Hours

Importance Of Human Resource Planning – Forecasting Human Resource Requirement –
Matching Supply And Demand - Internal And External Sources. Recruitment - Selection
– Induction – Socialization Benefits.

Unit 3:Training and Executive Development 09 Hours

Types of training methods –purpose- benefits- resistance. Executive development
programmes – Common practices - Benefits – Self development – Knowledge
management.

Unit 4: Sustaining Employee Interest 09 Hours

Compensation Plan – Reward – Motivation – Application of Theories of Motivation –
Career Management – Counseling and Mentoring

Unit 5: Performance Evaluation and Control Process 09 Hours

`
Method of performance evaluation – Feedback – Industry practices. Promotion, Demotion,
Transfer and Separation – Implication of job change. The control process – Importance –
Methods – Requirement of effective control systems grievances – Causes – Implications –
Redressal methods.

Text Book(s):
1. Dessler Human Resource Management, Pearson Education Limited,15th Edition
2017
2. Decenzo and Robbins, Human Resource Management, Wiley, 12th Edition, 2016.
Reference(s):
1. Luis R.Gomez-Mejia, David B.Balkin, Robert L Cardy. Managing Human Resource,
PHI Learning. 2012
2. Bernadin , Human Resource Management, Tata McGraw Hill, 8th edition 2012.
3. Ivancevich, Human Resource Management, McGraw Hill 2012.

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 L T P Credit
MAS18R5105 ACTUARIAL FINANCIAL REPORTING
3 0 0 3
Pre-requisite: Nil
Course Category: Program Core Course Type: Theory
Course Objective(s):
The aim of the Business Finance subject is to provide a basic understanding of corporate finance
including a knowledge of the instruments used by companies to raise finance and manage
financial risk and provide the ability to interpret the accounts and financial statements of
companies and financial institutions.
Course Outcome(s):
After completing this course, the student will be able to:
CO1: Students will be able to gain basic knowledge about corporate governance and Source of
Finance.
CO2: Students will be able to examine the Financial Instruments and Issue.
CO3: The students will be able to gain the knowledge about Taxation.
CO4: The students will be able to gain the knowledge about Financial institution
CO5: The students will be able to gain the knowledge about Interpretations of Accounts for
Insurance
Mapping of Course Outcome(s):
CO / PO
PO 1 2 3 4 5 6 7 8 9 10 11 12
CO1 S M L L M M L
CO2 S M L L L L M M L
CO3 S M L L L L M L M M L
CO4 S M L L L L M L M M L
CO5 S M L L M L M M L

Unit I: Corporate governance and Source of Finance 09 Hours

Introduction To Finance –Finance And Real Resources Of An Organization –Finance And The
Organizations Objectives –Responsibilities For Financial Decision- key principles of corporate
governance and the regulation of companies- stakeholders (including lenders and investors). Role
and effects of the capital markets -maximization of shareholder wealth- The Capital Markets.
Company Ownership: Types Of Business Entity –Sole Trader –Partnership –Limited Companies –
Limited Liability Partnerships –Private &Public Limited Companies –Pros & Cons Of Limited
Companies –Medium Term Finance –Hire Purchase –Credit Sale –Leasing –Bank Loans –Short
Term Finance –Bank Overdrafts –Trade Credit –Factoring –Bills Of Exchange –Commercial Paper.
Raising Finance- shadow banking’, direct project financing, crowd-funding and micro-finance.

Unit II: Financial Instruments and Issue 09 Hours

Loan Capital –Introduction –Debenture Stock –Unsecured Loan Stock –Subordinate Debt –
Eurobond Loan Capital –Floating Rate Notes –Share Capital –Ordinary Shares –Preference Capital
–Convertibles –Warrants –Options Issued By Companies –Winding Up of a Company. Issue Of
Shares: Obtaining Stock Exchange Quotation –Reasons For Quotation –Methods To Obtain
Quotation –Offer For Sale At Fixed Price –Offer For Sale By Tender –Concessionary Methods –
Offer For Subscription –Placing –Introduction –Role Of Underwriting –Issue Made By Companies
Already Quoted –Right Issue –Purpose –Impact –Theoretical Price –Scrip Issue –Purpose –Impact –
Scrip Dividend

Unit III: Taxation 09 Hours

`
Introduction –Personal Taxation –Considerations –Taxable Income –Tax Rates –Corporation Tax –
Accounting Profits & Taxable Profits –Rates Of Tax –Uses Of Corporation Tax System –Capital
Gain Tax –Chargeable Gains –Indexation Allowance–Taper Relief –Capital Losses –Rates Of Tax –
Other Taxes –Stamp Duty –Inheritance Taxes –Property Taxes –Sales Tax –Custom And Excise
Duties –Double Taxation Relief. Use Of Derivatives: Introduction –Financial Futures –Bond
Futures –Short Interest Rate Future –Stock Index Futures –Options –Meaning –Margins &
Premium –Types–Put Option –Call Option –Uses Of Option –Interest & Currency Swaps –Pricing–
Risk –Uses Of Swaps.

Unit IV: Financial institution 09 Hours

Features and Factor Influencing Financial institution, Features of central banks, investment
exchanges, investment banks. Role of Financial Institution in financial market-clearing banks,
building societies, investment trusts, unit trusts, investment management companies, self-
administered pension funds, life insurance companies, general insurance companies

Unit V: Interpretations of Accounts for Insurance 09Hours

Security Of Loan Capital –Introduction –Measuring Risk Associated With Loan Capital –Loan
Capital –Income Cover And Income Priority Percentages –Asset Cover And Asset Priority
Percentages –Asset Gearing –Income Gearing –Shareholder Analysis –Earnings Per Share –Basic
And Diluted –Earnings And Dividend Ratios –Price Earnings Ratio –Dividend Yield –Dividend
Cover –Payout Ratio –EBITDA –Net Asset Value Per Share -Structure and content of insurance
company accounts-consolidated accounts-Depreciation And Reserves –Introduction –
Purpose –Methods –Straight-Line Methods –Reducing Balance Method –Capital And
Reserves –Share Capital And Share Premium –Revaluation Reserve –Profit And Loss
Account

TEXT BOOKS:
1. The Study Material from Institute of Actuaries of India, Mumbai (The Professional
body for Actuarial Studies in India) Subject Code : CT2 - Finance and Financial
Reporting Or CB1- Business Finance

`
 L T P Credit
MAS18R5106 LIFE AND HEALTH CONTINGENCIES
3 0 0 3
Pre-requisite: Nil
Course Category: Program Core Course Type: Theory

Course Objective(s):
The aim of the Contingencies subject is to provide a grounding in the mathematical
techniques which can be used to model and value cashflows dependent on death,
survival, or other uncertain risks.

Course Outcome(s):
After completing this course, the student will be able to:
CO1: Students will be able to gain basic knowledge about Life Table.
CO2: Students will be able to gain the basic knowledge about Life Assurance Contracts, Life
Annuity Contracts and Its Evaluation
CO3: The students will be able to gain the knowledge about Net Premiums, Gross premiums and
Reserves.
CO4: The students will be able to examine the Profit Testing
CO5: The students will be able to examine the selection standardization and mortality

Mapping of Course Outcome(s):

CO / PO
PO 1 2 3 4 5 6 7 8 9 10 11 12
CO1 S M L L M M L
CO2 S M L L L L M M L
CO3 S M L L L L M L M M L
CO4 S M L L L L M L M M L
CO5 S M L L M L M M L

UNIT I: Life Table 09 Hours

Simple assurance and annuity contracts-whole life assurance, term assurance, pure
endowment, endowment assurance, whole life level annuity, temporary level annuity,
guaranteed level annuity, premium, benefit-Constructing A Life Table –Using The Life
Table -The Pattern Of Human Mortality -Life Table Functions At Non-Integer Ages -
Method 1 –Uniform Distribution Of Deaths (UDD) -Method 2 –Constant Force Of
Mortality (CFM) -The General Pattern Of Mortality -Mortality Characteristics -The Shape
Of Qx, Lx, Dx -Using The Life Table To Evaluate Means And Variances -Evaluating Means
And Variances Without Use Of The Life Table -Select Mortality -Displaying Select Rates -
Constructing Select And Ultimate Life Tables -Using Tabulated Select Life Table
Functions -Evaluating Means And Variances Using Select Mortality.

UNIT II: Life Assurance Contracts, Life Annuity Contracts and Its Evaluation
09 Hours
Life Assurance Contracts: Pricing Of Life Insurance Contracts -Equations of Value –
Allowance. For Investment Income -Present Value Random Variable -Expected Present
Value -Variance of the Present Value Random Variable for Life Assurance Contracts –Life
Assurance Benefits Payable Immediately On Death -Claim Acceleration Approximation.

`
Life Annuity Contracts: Immediate Annuity -Present Value Random Variable -Expected
Present Value -Variance Of The Present Value Random Variable -Annuity-Due -
Temporary Annuity -Temporary Annuity-Due -Deferred Annuities -Deferred Annuities-
Due -Continuous Annuities. Evaluation of Assurance And Annuities: Introduction-
Evaluating Assurance Benefits-Premium Conversion Equations-Expected Present Values
of Annuities Payable M Times Each Year

UNIT III: Net Premiums, Gross premiums and Reserves 09 Hours

Premiums -Frequency Of Payment -The Net Premium- Definition –Notation -Net random
future loss under an insurance contract- principle of equivalence-Net premiums for the
insurance contract-Benefits- Regular premiums, Annuity benefits, Death benefits-
Evaluation and Definition-prospective and retrospective reserves- Relationships between
net premium reserves- single policy or a portfolio of policies (Death strain at risk(DSAR),
expected death strain(EDS), actual death strain(ADS), mortality profit)- Survival Benefits-
Annuities -Thiele’s Differential Equation-Types of expenses in life insurance Contract –
Influence of inflation on the expenses-Gross future loss random variable for standard
Contracts – Gross premiums and reserves-Gross premiums using the equivalence
principle -Annual premium contracts -With-profit contracts -Premiums payable m times
per year -Gross premium using simple criteria other than the equivalence principle -
Gross premium prospective and retrospective provision -Equality of gross premium
prospective and retrospective provisions -Recursive relationship between provisions for
annual premium contracts

UNIT-IV: Profit testing 09 Hours

Methods of valuing cash flows for multiple transition events and decrement events-
Multiple-state Markov Model-Health insurance -health insurance premium and benefit
structures- - Regular premiums and sickness benefits- construction and use of multiple
decrement table- pension schemes- benefit and contribution structures- unit-linked
contract- whole life, endowment and term assurances, annuities, unit-linked contracts,
and unitized with-profits contracts, multiple decrement models-Profit vector, the profit
signature, the net present value, and the profit margin- premium for a conventional
(without profits) life insurance contract- Eliminate (“zeroise”) future negative cash flows

UNIT-V: Mortality, Selection and standardization 09 Hours

Mortality tables for different classes of lives and its Importance, Factors which contribute
to the variation in mortality and morbidity (occupation, nutrition, housing,
climate/geography, education, genetics)-Risk classification in life insurance- Forms of
selection (temporary initial selection, class selection, time selection, spurious selection,
adverse selection), mortality convergence, Selective Effect, Selection of life insurance and
pension schemes, single figure index-Advantages and Disadvantages , crude mortality
rate, mortality rate (Direct and Indirect Standardized)standardized mortality ratio.

TEXT BOOKS:
1. The Study Material from Institute of Actuaries of India, Mumbai (The Professional
body for Actuarial Studies in India) Subject Code : CT5 - Finance and Financial
Reporting Or CM1- Business Finance

References
1. Bowers, Newton L, Actuarial Mathematics, 2nd edition, Society of Actuaries,1997.
`
2. Neill, Alistair,Life contingencies, Heinemann, 1977.
3. Gerber, Hans U, Life Insurance Mathematics, 3rd edition, Springer, Swiss
Association of Actuaries, 1997.

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 L T P Credit
MAS18R5107 SURVIVAL MODEL ANALYSIS
3 0 0 3
Pre-requisite: Nil
Course Category: Program Core Course Type: Theory
Course Objective(s):
The aim of the Models subject is to provide a grounding in stochastic processes and
survival models and their application
Course Outcome(s):
After completing this course, the student will be able to:
CO1: Students will be able to gain basic knowledge Actuarial Model.
CO2: Students will be able to gain the knowledge about Markov chain and Process.
CO3: The students will be able to gain the knowledge about Survival Model.
CO4: The students will be able to gain the knowledge Maximum Likelihood Estimator
CO5: The students will be able to examine the Exposed to Risk and Method of Graduation

Mapping of Course Outcome(s):

CO / PO
PO 1 2 3 4 5 6 7 8 9 10 11 12
CO1 S M L L M M L
CO2 S M L L L L M M L
CO3 S M L L L L M L M M L
CO4 S M L L L L M L M M L
CO5 S M L L M L M M L

Unit-I: Actuarial Model 09 Hours

Principles of actuarial modeling-Application, Benefits and Limitations-Stochastic and
Deterministic model- Comparison, Benefits and Limitations- Short-run and long-run
properties of a model- Process of sensitivity testing in Modeling-General principles of
stochastic processes-Its types (continuous or discrete time, continuous or a discrete state
space, mixed type), Markov property, Counting Process- Mixed processes-Application

Unit-II Markov Chain and Markov process 09 Hours

Markov Chains Model-Features - Chapman-Kolmogorov equations- stationary
distribution for a Markov chain in simple cases- Time-inhomogeneous Markov chain
model-Application
Markov process model-Features- Kolmogorov equations (time/age dependent, duration of
stay in one or more states transition intensities)- Kolmogorov equations in simple cases-
simple survival models, sickness models and marriage models, other simple applications.
Markov jump processes-Uses and Simulation

Unit-III Survival models and Estimation Procedure 09 Hours

Survival models- Functions, lifetime or failure time, Probability Distribution and density
functions, Force of mortality or hazard rate and its relationship, Integral formulae for t px
and t qx- Gompertz and Makeham laws of mortality- Complete and Curtate future
lifetime- expected value, variance - two-state model- The Relationship Between Tx and
Ex.
Lifetime distributions-Its Types- Empirical survival function -Censoring- Kaplan-Meier (or
product limit) estimator- Nelson-Aalen estimator-cumulative hazard rate- Proportional
`
hazards-Estimation procedure Estimation of Covariance- Cox model for proportional
hazards-Derivation for partial likelihood estimate in the absence of ties, and state the
asymptotic distribution of the partial likelihood estimator.

Unit-IV Maximum likelihood Estimators 09 Hours

Maximum likelihood estimators - Transition intensities, constant transition intensities -
Piecewise constant transition intensities-Observational Plan - Markov model of transfers
between states- Asymptotic joint distribution- Poisson approximation -Binomial model of
mortality- Estimating Qx From The Data –Generalization Of The Model-Multiple state
Markov model-Comparison with Binomial and Poisson models- study of human
mortality.

Unit-V: Exposed to Risk and Method of Graduation 09 Hours

Calculating Exposed to Risk- homogeneous classes –The Principle of Correspondence –
census approximation-Rate Interval- census formula-Data for Death and census-
Consistency between Census Data and Death Data –Calendar Year Rate Intervals
Crude estimates for consistency (chi-square test, standardized deviations test, sign test,
cumulative deviation test, grouping of signs test, serial correlations test)- Graduating
crude estimates of transition intensities-Process Reason-,Statistical Test, Test for
smoothness, Advantages and Disadvantages of parametric formula, standard table,
graphical Methods.

TEXT BOOKS:
1. The Study Material from Institute of Actuaries of India,Mumbai (The Professional
body for Actuarial Studies in India) Subject Code : CT4-Models Or CS2-.Risk
Modeling and Survival Analysis
References
1. Bowers, Newton L, Gerber, Hans U, Hickman, James C, Jones, Donald A, Nesbitt,
Cecil J, Actuarial Mathematics, 2nd edition, Society of Actuaries, 1997.
2. Haberman, StevenPitacco, Ermanno,Actuarial models for disability Insurance,
Hapman& Hall, 1999.
3.Neill, Alistair,Life contingencies,Heinemann, 1977

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 L T P Credit
MAS18R5108 RISK MODEL ANALYSIS
3 0 0 3
Pre-requisite: Nil
Course Category: Program Core Course Type: Theory
Course Objective(s):
The aim of the Models subject is to provide a grounding in stochastic processes and
survival models and their application
Course Outcome(s):
After completing this course, the student will be able to:
CO1: Students will be able to gain basic knowledge Loss Distribution and reinsurance.
CO2: Students will be able to gain the knowledge about Risk Model and Ruin Theory.
CO3: The students will be able to gain the knowledge about Run-Off Triangles.
CO4: The students will be able to gain the knowledge Generalized Linear Models
CO5: The students will be able to examine the Exposed to Time series models

Mapping of Course Outcome(s):

CO / PO
PO 1 2 3 4 5 6 7 8 9 10 11 12
CO6 S M L L M M L
CO7 S M L L L L M M L
CO8 S M L L L L M L M M L
CO9 S M L L L L M L M M L
CO10 S M L L M L M M L

Unit-I: Loss Distribution and Reinsurance 09 Hours

Probabilities and moments of loss distributions-individual and aggregate losses-moments
and moment generating functions (where defined) of loss distributions including the
gamma, exponential, Pareto, generalized Pareto, normal, lognormal, Weibull and Burr
distributions-sets of claims-excesses (deductibles), and retention limits
Reinsurance-proportional and Excess of loss- Insurer and reinsurer –Claim ,Distribution
and Moments- Estimate the parameters of a failure time using maximum likelihood and
the method of moments- Distribution And Example –Inflation –Estimation-Policy Excess

Unit-II: Risk Model and Ruin Theory 09 Hours

Construct risk models - short term insurance- assumptions- moment generating
function, moments of aggregate claims of the sum of N independent random variables
(binomial, Poisson, geometric or negative binomial distribution)- mean, variance and
coefficient of skewness for compound binomial, compound Poisson and compound
negative binomial random variables- proportional and excess of loss reinsurance for
insurer and the reinsurer
Concept of ruin for a risk model- state Lundberg’s inequality- Risk-aggregate claim
process-cash-flow process- Adjustment coefficient for a compound Poisson process-
probability of ruin in infinite/finite and continuous/discrete time and state- relationships
between the different probabilities of ruin- loss function -concepts of Bayesian statistics-
Bayesian estimates of parameters- Bayesian approach to credibility theory

Unit-III: Run-Off Triangles 09 Hours

`
Introduction-The Origins Of Run-Off Triangles-Types Of Reserves-Presentation Of Claims
Data –Estimating Feature Claims. Projections Using Development Factors: Run-Off
Triangles –The Chain Ladder Method –Model Checking -Other Methods of Deriving
Development Factors Assumptions Underlying the Method. Adjusting For Inflation- The
Inflation Adjusted Chain Ladder Method. The Average Cost per Claim Method Description
of Method Application of the Method-Assumptions Underlying in the Method. Loss Ratios
the Bornhuetter Ferguson Method: Concept of Bornhuetter Ferguson Method –
Description of the Method –Application of the Method –Assumptions Underlying the
Method –Grossing Up Factors versus Development Factors.

Unit-IV: Generalized Linear Models 09 Hours

Introductions -Exponential Families: Normal Distribution-Poisson Distribution –Binomial
Distribution –Gamma Distribution. Link Functions and Linear Predictor Link Functions-
Linear Predictor. Deviance of Model Fitting Residuals Analysis and Assessment of Model
Fit- Pearson’s Chi- square test and the Likelihood ratio test

Unit V: Time series models 09 Hours

Introduction-Properties of a Univariate Time Series-Stationary Random Series-Notation-
backwards shift operator, backwards difference operator, roots of the characteristic
equation -properties of autoregressive (AR), moving average (MA), autoregressive moving
average (ARMA) and autoregressive integrated moving average (ARIMA) time series-
concept and properties of discrete random walks and random walks(with and without
drift)- Multivariate autoregressive model-cointegrated time series-Estimation and
diagnosis of a time series-Markov property-non-stationary, non-linear time series
models-Extrapolation , moving average models, applying smoothing techniques and
seasonal adjustment -Monte Carlo simulation using a series of pseudo-random numbers.

TEXT BOOKS :
1. The Study Material from Institute of Actuaries of India, Mumbai (The Professional
body for Actuarial Studies in India) Subject Code : CT6-Statistical Methods Or
CS2-.Risk Modeling and Survival Analysis

References
1. Dobson, Annette J, An Introduction to Statistical Modelling, Chapman & Hall,
1983.
2. Hossack, Ian B, PollardJohn H, Zehnwirth, Benjamin, Introductory statistics with
applications in general insurance, 2nd edition, Cambridge University Press, 1999.
3. Klugman, Stuart A, Panjer, Harry H, Willmot,Gordon E, Venter, Gary G, Loss
Models: from data to decisions, John Wiley & Sons, 1998.
4. Daykin, Chris D,Pentikainen, Teivo, Practical risk theory for actuaries, Chapman &
Hall, 1994

`
 DATA ANALYSIS AND BUSINESS MODELING L T P Credit
MBA18R5181
LAB 0 0 4 2
Pre-requisite: Nil
Course Category: Program Core Course Type: Practical
Course Objective(s):
The course aims at providing fundamental knowledge and exposure of the
concepts, theories and hands-on experience on decision modelling.
Course Outcome(s):
Knowledge of spreadsheets and data analysis software for business modeling

Experiment No Name of the experiments Duration

1 Descriptive Statistics 3
2 Hypothesis – Parametric & Non parametric 4
3 Correlation & Regression 3
4 Portfolio Selection 3
5 Risk Analysis & Sensitivity Analysis 4
6 Revenue Management 3
7 Assignment and Transportation 4
8 Inventory Model 3
9 Network Model 3
`*Business models studied in theory to be practiced using Spreadsheet / Analysis
Software

TEXTBOOKS & REFERENCE BOOKS

1. Robert H Carver, Doing Data Analysis with SPSS: Version 18.0, 5th Ed, Cengage
Learning, Delhi, 2016.
2. David M. Levine et al, Statistics for Managers using MS Excel, 8th Edition, Pearson
Publications, 2016
3. David R. Anderson, et al, An Introduction to Management Sciences: Quantitative
approaches to Decision Making, 15th edition, Cengage Learning Inc, 2016.
4. Paneerselvam R., Operations Research, 2th edition, Prentice Hall of India, New
Delhi, 2009.
5. Hamdy A Taha, Introduction to Operations Research, 9th edition, Prentice Hall
India, New Delhi, 2014.

`
 III
MBA18R5201 BUSINESS ETHICS, CORPORATE SOCIAL L T P Credit
RESPONSIBILITY AND GOVERNANCE 3 0 0 3
Pre-requisite : Nil
Course Category: Program Core Course Type: Theory
Course Objective(s):
Students will explore the challenges inherent in creating and leading organizations that
perform well financially as well as environmentally and socially. The course will cover
contemporary challenges in ethics, corporate social responsibility (CSR) and
sustainability through the use of some or all of the following: case studies, readings,
debates, guest speakers, multimedia, peer-to-peer learning, discussions, small group
activities, games and on-line activities.

Course Outcome(s):
After completing this course, the student will be able to:
CO1: To understand the Characteristics, Ethical theories and Causes of unethical
behavior;
CO2: Student will aware of the ethical theory.
CO3: Analyze major characteristics and their implications for business.
CO4: To know the Industrial policy and framework of government contract over Business
CO5: Student will understand the Governance practices and regulation, Structure and
development of boards.
Mapping of Course Outcome(s):
CO / PO
PO 1 2 3 4 5 6 7 8 9 10 11 12
CO1 M S M L L L
CO2 L M S
CO3 L M M L
CO4 L M M
CO5 M L M

UNIT I INTRODUCTION 09Hours

Definition & nature Business ethics, Characteristics, Ethical theories; Causes of
unethical behavior; Ethical abuses; Work ethics; Code of conduct; Public good.

UNIT II ETHICS THEORY AND BEYOND 09Hours

Ethical dilemma; Ethics in practice - ethics for managers; Role and function of ethical
managers- Comparative ethical behaviour of managers- Gilligan’s theory and khol bergs
theory- moral autonomy.

UNIT III LEGAL ASPECTS OF ETHICS 09Hours

Political – legal environment; Provisions of the Indian constitution pertaining to Business;
Political setup – major characteristics and their implications for business; prominent
features of Competition Act & FEMA, Competition Act 2002. Social – cultural
environment and their impact on business operations, Salient features of Indian culture
and values.
`
UNIT IV ENVIRONMENTAL ETHICS 09Hours
Features of Economic Planning with respect to business; Industrial policy and framework
of government contract over Business; Role of chamber of commerce and confederation of
Indian

UNIT V CORPORATE SOCIAL RESPONSIBILITY AND GOVERNANCE 09Hours

Definition- Evolution- Need for CSR; Theoretical perspectives; Corporate citizenship;
Business practices; Strategies for CSR; Challenges and implementation; Evolution of
corporate governance; Governance practices and regulation; Structure and development
of boards; Role of capital market and government; Governance ratings; Future of
governance- innovative practices; Case studies with lessons learnt.

Text Book(s):
1. William B. Werther and David B. Chandler, Strategic corporate social responsibility,
Sage Publications Inc., 2015
2. Robert A.G. Monks and Nell Minow, Corporate governance, John Wiley and Sons,
2014.

Reference(s):
1. Satheesh kumar, Corporate governance, Oxford University, Press, 2014.Bob Tricker,
Corporate governance- Principles, policies and practices, Oxford University Press,

`
 L T P Credit
MBA18R5202 STRATEGIC MANAGEMENT
3 0 0 3
Pre-requisite: Nil
Course Category: Program Core Course Type: Practical
Course Objective(s):

This Lecture provides an overview of strategic management. It introduces a practical,

integrative model of the strategic-management process and defines basic activities and
terms in strategic management anddiscusses the importance of business ethics. After
reading this lecture you will be able to know that: What Is Strategic
Management?Discuss the nature of strategy formulation, implementation, and evaluation
activities
Course Outcome(s):
After completing this course, the student will be able to:

CO1 To provide the better and up-to-date information about the organization's
current position and to predict where can be the organization stand in future.
CO2 To make managers and organizational members more alert about the
opportunities and threatening development in their corresponding field.
CO3 To analyze and choose the various strategies for develop the business
CO4 To analyze the opted strategy for evaluation and make corrective action.
CO5 To identify the various strategic issues in the business.

Mapping of Course Outcome(s):

CO / PO
PO 1 2 3 4 5 6 7 8 9 10 11 12
CO1 S M L L M M L
CO2 S M L L L L M M L
CO3 S M L L L L M L M M L
CO4 S M L L L L M L M M L
CO5 S M L L M L M M L

UNIT I STRATEGY AND PROCESS 09hours

Conceptual framework for strategic management, the Concept of Strategy and the
Strategy Formation Process – Stakeholders in business – Vision, Mission and Purpose –
Business definition, Objectives and Goals - Corporate Governance and Social
responsibility-case study.

UNIT II COMPETITIVE ADVANTAGE 09hours

External Environment - Porter’s Five Forces Model-Strategic Groups Competitive
Changes during Industry Evolution-Globalization and Industry Structure - National
Context and Competitive advantage Resources- Capabilities and competencies–core
competencies-Low cost and differentiation Generic Building Blocks of Competitive
Advantage- Distinctive Competencies Resources and Capabilities durability of
competitive Advantage- Avoiding failures and sustaining competitive advantage-Case
study.

`
UNIT III STRATEGIES 09hours
The generic strategic alternatives – Stability, Expansion, Retrenchment and Combination
strategies - Business level strategy- Strategy in the Global Environment-Corporate
Strategy Vertical Integration-Diversification and Strategic Alliances- Building and
Restructuring the corporation- Strategic analysis and choice - Environmental Threat and
Opportunity Profile (ETOP) -Organizational Capability Profile - Strategic Advantage Profile
- Corporate Portfolio Analysis -SWOT Analysis - GAP Analysis - Mc Kinsey's 7s
Framework - GE 9 Cell Model – Distinctive competitiveness - Selection of matrix -
Balance Score Card-case study.

UNIT IV STRATEGY IMPLEMENTATION & EVALUATION 09Hours

The implementation process, Resource allocation, Designing organizational structure-
Designing Strategic Control Systems- Matching structure and control to strategy-
Implementing Strategic change-Politics-Power and Conflict-Techniques of strategic
evaluation & control-case study.

UNIT V STRATEGIC ISSUES 09hours

Managing Technology and Innovation-Strategic issues for Non-Profit organizations, New
Business Models and strategies for Internet Economy-case study

TEXTBOOKS
1. Charles W Hill & Jones, An Integrated Approach to Strategic Management, 12thIndian
edition, Cengage Learning, Delhi, 2017.
2. Gregory Dess, Strategic Management Text and Cases, 3rd edition, Tata McGraw Hill,
New Delhi, 2015.
3. John A.Parnell. Strategic Management, Theory and practice Biztantra (2012).
4.Azhar Kazmi, Strategic Management and Business Policy, 3rdEdition,Tata McGraw Hill,
08

REFERENCES
1. Adriau HAberberg and Alison Rieple, Strategic Management Theory & Application,
Oxford University Press, 2008.
2. Lawerence G. Hrebiniak, Making strategy work, Pearson, 2005.
3. Gupta, Gollakota and Srinivasan, Business Policy and Strategic Management –
Concepts and Application, Prentice Hall of India, 2005.
4. Dr.Dharma Bir Singh, Strategic Management & Business Policy, KoGent Learning
Solutions Inc., Wiley, 2012.
5. John Pearce, Richard Robinson and Amitha Mittal, Strategic Management, McGraw
Hill, 12th Edition, 2012

`
 L T P Credit
MAS18R5201 Actuarial Risk Management and Practice
3 0 0 3
Pre-requisite: Nil
Course Category: Program Core Course Type: Practical

Course Objective(s):
The aim of the Actuarial Risk Management subject is that upon successful
completion, the candidate should understand strategic concepts in the
management of the business activities of financial institutions and
programmes, including the processes for management of the various types of
risk faced, and be able to analyse the issues and formulate, justify and present
plausible and appropriate solutions to business problems.
Course Outcome(s):
After completing this course, the student will be able to:
CO1: Students will be able to gain basic knowledge Actuarial advice and Stakeholders
Needs.
CO2: Students will be able to gain the knowledge different Actuarial Environment
CO3: The students will be able to examine the Specifying Problem and Project planning
CO4: The students will be able to gain the knowledge and Producing the Solution
CO5: The students will be able to examine the Exposed to Living with the Solution and
Monitoring

Mapping of Course Outcome(s):

CO / PO
PO 1 2 3 4 5 6 7 8 9 10 11 12
CO1 S M L L M M L
CO2 S M L L L L M M L
CO3 S M L L L L M L M M L
CO4 S M L L L L M L M M L
CO5 S M L L M L M M L

Unit-I: Actuarial advice and Stakeholders Needs 09 Hours

Role of Actuaries, Responsibility, Contribution towards Business Needs, statutory roles
in pensions and insurance (public and private sectors), Clients- Stakeholders-Actuaries
advise and its types - issues, Functions of the clients and potential clients-Attitude, Risk,
- contingent events-Products, schemes, contracts, Benefits and Limitation- Actuarial
Control Cycle-Risk Management -Institute and Faculty of Actuaries -Framework ,
Financial Reporting Council.

Unit-II: Actuarial Environment 09 Hours

Risk environment- Risk management- classification- process, products, schemes,
contracts-contingent events- Difference between systematic and diversifiable risk- Risk
appetite, Attainment of risk efficiency- credit risk- credit ratings- liquidity risk-market
risk-operational risk-business risk- methods of risk acceptance, rejection, transfer and
management for stakeholders- Portfolio approach of risk- principle of pooling risks-
methods of transferring risks

`
Regulatory environment- principles and aims of prudential and market conduct
regulatory regimes- information asymmetry- features of financial contracts
External environment- implications-benefits on contingent and its Components
Investment environment-Cash flows of simple financial arrangements- theoretical and
historical relationships between the total returns and the components of total returns, on
equities, bonds and cash, and price and earnings inflation
Capital requirements- Measures of capital needs- assessment of economic and
regulatory capital requirements and its Models.

Unit-III: Specifying Problem 09 Hours

Contract design- suitable design for financial structures (products, schemes, contracts
or other arrangements)
Project planning and management -Process - Actuarial techniques for assessment of
capital investment projects, Risk and cost-benefit analyses
Data- Data requirements for determining values for assets, future benefits and future
funding requirements- Condition for optimal level of homogeneity
Risk management-Issues, tools, methods of measuring risk, Impact. Stress testing and
stochastic modeling in the evaluation of risk

Unit IV: Producing the Solution 09 Hours

Producing the solution- Modeling- use of actuarial models, objectives , requirements-
pricing or setting future financing strategies- risk management- assessing the capital
requirements- assessing the provisions- pricing and valuing options and guarantees-
Assumption setting- Expenses- cost and the price- Investment management-
Provisioning- principles of Fair valuation- methods of risk in cash-flows- - purpose of
and uses for equalisation reserves Relationship between assets and liabilities- portfolio
theory for investor's liabilities

Unit V: Living with the Solution and Monitoring 09 Hours

Living with the solution- Maintaining profitability-Determining the expected results-
Reporting actual results-Asset management-Capital management-Surplus management-
Insolvency and closure-Options and guarantees
Monitoring- monitoring process in the Actuarial Control Cycle-Principle Terms in
Financial services and Risk Management.

TEXT BOOKS
1. The Study Material from Institute of Actuaries of India,Mumbai (The Professional
body for Actuarial Studies in India) Subject Code : CA1-Actuarial Risk
Management Or CP1–Actuarial Practice

`
 L T P Credit
MBA18R5202 Modelling and Communication Practice
3 0 0 3
Pre-requisite: Nil
Course Category: Program Core Course Type: Practical

Course Objective(s):
he aim of the Modelling Practice subject is to ensure that the successful candidate can
model data, document the work (including maintaining an audit trail for a fellow student
and senior actuary), analyse the methods used and outputs generated and communicate
to a senior actuary the approach, results and conclusions.
This module introduces candidates to the skill of providing effective written
communication of a technical nature to a non-technical audience. It builds on the idea
that actuaries, while working in technical and specialist environments, will often have to
provide written communications to non- specialists. These communications need to
convey appropriate information, but without unnecessary complexity

Course Outcome(s):
After completing this course, the student will be able to:
CO1: Students will be able to gain basic knowledge Data Preparation and Model
Development.
CO2: Students will be able to examine and interpret the Model
CO3: The students will be able to gain the knowledge about Written communication
CO4: The students will be able to gain the knowledge about Oral communication
CO5: The students will be able to examine gain the knowledge about Workplace
communication

Mapping of Course Outcome(s):

CO / PO
PO 1 2 3 4 5 6 7 8 9 10 11 12
CO1 S M L L M M L
CO2 S M L L L L M M L
CO3 S M L L L L M L M M L
CO4 S M L L L L M L M M L
CO5 S M L L M L M M L

Unit-I: Preparation data and Development of Model 09 Hours

Introduction to data -Appropriate tools for cleaning, restructuring, Summaries data,
Assumptions, Transforming data, Repair corrupt or missing data, Appropriate Statistical
tests.
Introduction to Model-Development of a model and Analysis - Documentation-Plan and
Produce spreadsheet model- Justification of key assumptions- methodology,
reasonableness checks, sensitivities and limitations, Audit trail for Model

Unit-II: Analysis of a model and Interpretation of results 09 Hours

Analysis of methods used and model outputs-Sensitivity and/or scenario tests, Test and
comment for different scenarios- Application and interpretation of results-Analyze

`
Problem set, suggesting solutions-Design Appropriate charts and tables-Propose the
Future Work.

Unit-III: Written Communication 09 Hours

Introduction to Written Communication-Identify relevant information- Appropriate
Content-Order- Clarity-Hierarchy in Documentation
Clients with a degree of financial/business awareness (Reports or letters to pension
scheme trustees, company finance directors)
Non-actuarial managers (Reports, letters or memoranda to a marketing manager,
customer service director, human resources director, manager or a press team,
investment manager)
Individuals in a business context (letters to a pension scheme member or insurance
policyholder)

Unit-IV: Oral Communication 09 Hours

Introduction to Oral Communication-Clarity in Technical terms- Appropriate tone-Clarity
in Pronunciation –Proper Explanation-language- Addressing key issues- Present the
points in a response in an appropriate order- Use of visual aids or ICT tools[charts (bar
charts, pie charts, graphs).diagrams ,pictures ,tables of numbers, slide presentations
,bullet points, flipchart pages]

Unit-V: Work Place Communication 09 Hours

E-mails, minutes, reports of different kinds – annual report, status report, survey report,
proposals, memorandums, presentations, interviews, profile of institutions, speeches,
responding to enquiries, complaints, resumes, applications, summarizing, strategies for
writing-Features for publication-case studies-Techniques of writing -Translation

TEXT BOOKS
1. The Study Material from Institute of Actuaries of India,Mumbai (The Professional
body for Actuarial Studies in India) Subject Code : CA2- Model Documentation
Analysis and Reporting & CA3- Communications Or CP2–Modelling Practice and
CP3–Communication Practice

`
 MBA18R5282 PROFESSIONAL SKILL DEVELOPMENT L T P C
0 0 4 2
Pre-requisite : Nil
Course Category: Program Core Course Type: Practical

Course Description
This personal development course is designed to help you to discover and achieve your
goals through a focus on organizing and encouraging action to make a better world. You
will learn techniques that will increase your abilities in key areas; including setting and
achieving goals, communication skills, self-motivation and positive mental attitude. This
course will help you to develop your skills so that, every day, you will be able to get the
best performance from yourself and others
.
Course Outcome(s):
After completing this course, the student will be able to:
CO1: understand the basics of Personal Communication
CO2: Intends to know the social communication
CO3: Intends to the Group and Mass communication
CO4: Integrate the speaking and presentations skills
CO5: Identify and analyze the skills required for fulfill the corporate demands

Mapping of Course Outcome(s):

CO / PO
PO 1 2 3 4 5 6 7 8 9 10 11 12
CO1 S M L L M M L
CO2 S M L L L L M M L
CO3 S M L L L L M L M M L
CO4 S M L L L L M L M M L
CO5 S M L L M L M M L

Unit 1: Personal Communication 09Hours

Day-to-day conversation with family members, neighbors, relatives, friends on various
topics, context specific –agreeing/disagreeing, wishing, consoling, advising, persuading,
expressing opinions, arguing

Unit 2: Social Communication 09Hours

Telephone calls (official), colleagues in the workspot, discussing issues (social, political,
Cultural) clubs (any social gathering), answering questions, talking about films, books,
news items, T.V. programmes, sharing jokes

Unit 3: Group/Mass Communication 09Hours

Group discussion (brainstorming ), debate, panel discussion, anchoring/master of
ceremony, welcome address, proposing vote of thanks, introducing speakers, conducting
meetings, making announcements, Just – a - minute (JAM), Block and tackle,
shipwreck, spoof, conducting quiz, negotiations, oral reports.
Unit 4: Integrated Speaking and Presentation Skills 09Hours

`
Listening to speak (any radio programme/lecture), reading to speak, writing to speak,
watching to speak, (any interesting programme on TV), Reading aloud any text/speech,
lecturing, PowerPoint presentation, impromptu, Interviews of different kinds (one to one,
many to one, stress interview, telephonic interview)

Unit 5: Employability and Corporate Skills 09Hours

Interview skills – Types of interview, preparation for interview, mock interview. Group
Discussion – Communication skills in Group Discussion, Structure of GD, GD process,
successful GD techniques, skills bought out in GD – leadership and co-ordination.Time
management and effective planning –identifying barriers to effective time management,
prudent time management techniques, relationship between time management and
stress management. Stress management –causes and effect, coping strategies simple
physical exercises, simple Yoga and Meditation techniques, Relaxation techniques, stress
andfaith healing, positive forces of nature, relaxation by silence and music. Decision
making and Negotiation skills, People skills, Team work, development of leadership
qualities

Text Book
1. Richard Denny, “Communication to Win; Kogan Page India Pvt. Ltd., New Delhi, 2015.
2. “Value Education”, VISION for Wisdom, Vetha thiri Publications, Erode, 2016

Reference Books
1. Shalini Varma, “Development of Life skills and Professional Practice”,Vikas
Publishing,2014

`
 L T P Credit
MBA18R5298 INDUSTRIAL TRAINING
0 0 12 6
Pre-requisite: Nil
Course Category: In Plant Training Course Type: In Plant Training
Course Objective(s):
This course is designed in such a way Participants will be introduced to the principles of
effective assessment of student learning both from a formative (i.e., assessment for
learning) and summative (i.e., assessment of learning) perspectives. Participants will also
be offered an opportunity to explore different ways of providing feedback throughout the
learning process and think about possible uses of an ePortfolio to help students
document their learning.
Course Outcome(s):
After completing this course, the student will be able to:
CO1: Able to provide high quality, comprehensive, effective professional developmental
opportunities that meet the ever-increasing demands of professional.
CO2: Provide planned instructional activities and learning experiences that are likely to
ensure the achievement of your identified learning outcomes.
CO3: Apply academic knowledge in practical and creative ways and Utilize critical
thinking, reflective listening and effective reasoning skills.
CO4: Advance the students' intellectual curiosity, competency and skills and Develop
critical thinking, creativity and effective communication.
CO5: It Allows every individuals to discover their own strengths and weaknesses as
emerging professionals.
Mapping of Course Outcome(s):
CO / PO
PO 1 2 3 4 5 6 7 8 9 10 11 12
CO1 S M L L M M L
CO2 S M L L L L M M L
CO3 S M L L L L M L M M L
CO4 S M L L L L M L M M L
CO5 S M L L M L M M L
Students should undergo Inplant Training for successful completion of the MBA
programme. It aims at developing insight and capabilities in the students for in depth
study, research, interpretation, and analysis on a particular chosen topic in any
reputed institution or organization. In plant Training has to be selected with respect to
the programme of study and area elected by the student. The report will contain the
objectives and scope of the study. Research methodology, use, importance of the study,
analysis of data collected, conclusions and recommendations. It should contain
relevant charts, diagrams and bibliography. A certificate of the Supervisor and the Head
of the MBA program certifying the authenticity of the report shall be attached
therewith. The student will submit three copies of the report to the Project Coordinator.
The Research Work is evaluated for 100 marks. Grade will be given accordingly. Two
Inplant Training reviews will be conducted during this period of time frame and final
evaluation is done with Viva Voce by the External Examiner.

`
 IV
Subject Subjects L T P C
Code
MBA18R5299 Project Work 0 0 20 10
Total Credit 0 0 20 10

`
 GROUP I (INSURANCE SERVICES)
Paper Course Code Course Title L T P C
No.
1. MAS18R5204 Pension and Other Employee Benefits 4 0 0 4
2. MAS18R5205 Business awareness module 4 0 0 4
3. MAS18R5206 FOREX management 4 0 0 4
4. MAS18R5207 Financial Economics 4 0 0 4
5. MAS18R5208 Asset and Liability Management 4 0 0 4
6. MAS18R5209 Insurance Product Design & Futures 4 0 0 4

`
 L T P Credit
MAS18R5204 Pension and other Employee Benefits
4 0 0 4
Pre-requisite : MBA18R5104-Pimciples of Banking and Insurance
Course Category: Elective Course Type: Theory
Course Objective(s):
The aim of the Actuarial Risk Management subject is that upon successful
completion, the candidate should understand strategic concepts in the
management of the business activities of financial institutions and
programmes, including the processes for management of the various types of
risk faced, and be able to analyse the issues and formulate, justify and present
plausible and appropriate solutions to business problems.
Course Outcome(s):
After completing this course, the student will be able to:
CO1: To understand the political, economic and social environment factors which
provide the context for
pensions planning.
CO2: To understand to demonstrate knowledge and understanding of risk management
and uncertainty
management.
CO3: To understand and critically discuss how firms make mergers and acquisitions
and how they structure and finance them.
CO4: To analyze issues related to the objectives of financial reporting, policies and
standards.
CO5: To explain how the Global Reinsurance market place operates and main market
practice.

Mapping of Course Outcome(s):

CO / PO
PO 1 2 3 4 5 6 7 8 9 10 11 12
CO1 S M L L M M L
CO2 S M L L L L M M L
CO3 S M L L L L M L M M L
CO4 S M L L L L M L M M L
CO5 S M L L M L M M L

UNIT-I 09 Hours

Provision of pensions and other benefits — provision of pension and other benefits – Rolls
of the Pensions Regulator, employers or groups of employers, individuals or groups of
individuals, trustees, actuaries, investment advisers, other advisers - alternative
systems of social security — Mandatory individual accounts- Occupational pension
scheme- personal pensions-Needs of parties- implications for the parties.

UNIT-II 09 Hours
`
Risks and uncertainties affecting - incidence of benefits - contributions - overall security
of benefits - Financing the benefits — time contribution- characteristics of investment —
payment dues — Sponsor covenant — Suitable design for benefits and contribution-
risks and uncertainties.

UNIT-III 09 Hours

Problems in company purchase or merger - different interests and responsibilities -

Pensions Clause of a Sale - Process of population projection — Socio-economic factors -
Actuarial models for decision making purposes in non state pensions - Actuarial methods
to financial management of social security scheme — Assumptions for valuing future
benefits.

UNIT-IV 09 Hours

Value of assets, future benefits and contributions — application of actuarial methods to

contribution of pension schemes : Viability, robustness— conversion of individual
accounts — retirement income planning and pension grantees — future operating
expenses.

UNIT-V 09 Hours

Principles behind the determination of discontinuance terms - rights of beneficiaries -

method of provision of discontinuance- level of available assets - Asset-liability matching
for pensions and related benefits — re-insurance, risk and uncertainties of pensions —
Sources of surplus/deficit for a benefit provider- Actuarial control cycle - asset-liability
matching requirements - trade-off - Produce coherent advice and recommendations.

Recommended Text

1. Jeery S Rosen bloom "The Handbook of Employee benefits" 6th edition ,Mc Graw
Hill

2. Richard M Stienberg " Pension and other employee benefits" 4th Edition 2014,
Wiley and sons

Reference Books

1. Robert Julius Myers “Indexation of pension and other benefits” Published for the
Pension Research Council, Wharton School, University of Pennsylvania by R. D.
Irwin, 2012

2. Marie Bechtel, Jon E. Heywood “Dividing Pensions and Other Employee Benefits in
California Divorces” Continuing Education of the Bar--California, 2011

`
 L T P Credit
MAS18R5205 Business Awareness Module
4 0 0 4
Pre-requisite : MAS18R107-Survival Model Analysis MAS18R108-Risk Model
Analysis
Course Category: Elective Course Type: Theory
Course Objective(s):
The aim of the Actuarial Risk Management subject is that upon successful
completion, the candidate should understand strategic concepts in the
management of the business activities of financial institutions and
programmes, including the processes for management of the various types of
risk faced, and be able to analyse the issues and formulate, justify and present
plausible and appropriate solutions to business problems.
Course Outcome(s):
After completing this course, the student will be able to:
CO1 To demonstrate an understanding of the major functional areas of Business.

CO2 To make an informed judgment about whether or to what extent a financial market
satisfies the conditions of an efficient market.

CO3 To identify the main factors that could detract from the that efficiency for primary
and secondary market.

CO4 To assess whether the regulatory environment for financial services is effective.

CO5 To demonstrate knowledge of the range of financial and financial related risks
facing organizations.

Mapping of Course Outcome(s):

CO / PO
PO 1 2 3 4 5 6 7 8 9 10 11 12
CO1 S M L L M M L
CO2 S M L L L L M M L
CO3 S M L L L L M L M M L
CO4 S M L L L L M L M M L
CO5 S M L L M L M M L

UNIT-I 09 Hours

Financial System:-Financial environment:- Real Assets Vs Financial Assets – Role of

Financial System – Market Structure – Recent Trends:-Globalisation - Securitisation –
Financial Engineering – Computer Networks – Derivatives - ADRs and GDRs – GDRs:-
Advantage for Issures – Benefit for Investors -Securitisation – Jargons- Features of
securitization – Current Securitisation activity in India.

UNIT-II 09 Hours

Financial Markets & Instruments – Financial Markets – Functions of Financial Markets-

Organisation of Financial Markets – Types of Financial Markets: - Primary & Secondary
Markets – Short Term (Money) and Long Term (Capital) Market:- Money Market
`
Instruments:- Call money - Repos– Collateralised Lending and Borrowing – Treasury Bills
– Commercial paper – Ceritificate of Deposit – Commercial Bills – Capital Market
Instruments :- Central Government Securities – State Government securities and Public
Sector bonds – Corporate bonds and debentures – Equity Shares – Preference Shares –
Warrants - Spot & Deferred Delivery Market – Derivative Products :- Forwards – Futures
– Options - Regulation of Financial Markets.

UNIT-III 09 Hours

Primary & Secondary Markets : Introduction – Primary Markets: - Classifications of Issue

:–On the basis of Price – On the basis of subscribers – A Preferential Issue – Issue to the
existing shareholders - Pricing of an Issue- Book Building process – Auction of T-bills
and GOI securities - Offer Document – Steps involved in Public & Rights Issue – Listing
and Delisting - Secondary Market: - Trading on Stock Exchanges:- Screen Based
Trading– Contract Note – Depository- Settlement – Custodian – Technology in trading and
settlement - Trading on Over the Counter / Dealer Market – Stock Market Indices –
Index Construction – Equity Indices – BSE Indices – NSE Indices – Debt Market Indices.

UNIT-IV 09 Hours

Macro Economy & Financial Services Industry: Aspects of Global Economy and Politics: -
Economic Factors – National Income – Gross National Product (GNP) – Gross Domestics
Product (GDP) – Per Capita Income – Savings as a % of GDP – Inflation and Recession –
Monetary & Fiscal Policy – Life Insurance – General Insurance - Challenges and Issues:
Challenges facings Insurance Industry – Issues in Insurance Industry.

UNIT-V 09 Hours

Actuarial profession- Overview – Introduction to profession and professionalism –

Characteristics of the Actuarial profession -Actuary in Financial Services Industry: - Role
of Actuaries:- Insurance Business-valuation of liabilities- profit distribution- product
design and product pricing- profit testing- Assessment of solvency – Investigation of
investment policy – investigation of new business risks – General Insurance:- Premium
rating – Estimation of liabilities – collecting and presentation of information –
Reinsurance requirements – Health insurance - Role of an appointed Actuary – Role of an
Actuary-other areas - Skills required for the Actuary – Acquiring Knowledge about the
Aspects of the Company where Actuary is employed

Recommended Text

1. Prof. Dr. OlafPassenheim, “Enterprise Risk Management” , 1st edition, Prentice

Hall of india

Reference Book

1. Ray C. Anderson “Business Lesson from a Radical Industrialist”, 2009, Pearson

Publications

`
 L T P Credit
MAS18R5206 FOREX management
4 0 0 4
Pre-requisite : MBA18R5104-Pimciples of Banking and Insurance
Course Category: Elective Course Type: Theory
Course Objective(s):
This course addresses the problems faced by small business firms in handling
foreign exchange (FX) transactions. The first part of the course examines the working of
FX markets and the settlement systems used by small companies. The second section of
the course investigates how exchange rates are determined and if changes in the
exchange rate can be predicted. The third part of the course studies why firms position
against exchange risk and how to measure exposure to exchange rates. In the fourth
section of the course, we examine the valuation of international products, and the
financial risk faced with delays in foreign exchange settlements.
Course Outcome(s):
After completing this course, the student will be able to:

CO1 : To understand how the foreign Exchange Market operates

CO2 : To understand the principles of Currency valuation
To explain techniques that can be used to hedge foreign
CO3 :
exchange risk
To create an understanding on foreign exchange Management
CO4 :
in India
CO5 : To explore impact of forex management on Indian economy.

Mapping of Course Outcome(s):

CO / PO
PO 1 2 3 4 5 6 7 8 9 10 11 12
CO1 S M L L M M L
CO2 S M L L L L M M L
CO3 S M L L L L M L M M L
CO4 S M L L L L M L M M L
CO5 S M L L M L M M L

FOREIGN EXCHANGE 09 Hours

Concepts, significance of foreign exchange- FOREX RESERVES- Exchange rates- inter
banks and Merchant rates- spot and forward rated-TT rates- computations-FOREX
Markets—derivate in the FOREX markets- Futures, Swaps, Options and Arbitrage- Forex
dealers and Speculators Organizations of the FOREX market.

EXCHANGE RATE FIXATION 09 Hours

`
Purchasing Power Parity Theory- Interest Rate Parity Theory- Flow Model- Asset market
models-forecasting of exchange ratesNominal Effective Exchange Rates and real Effective
Exchange rates- Hedging against Exchange rate fluctuations.

FORWARD EXCHANGE CONTRACTS 09 Hours

Relevance-types- forward exchange rate computation – factors influencing forward
RATES- extension and cancellation of forward contracts- Futures-features vs Forward
contracts-Options- types and Mechanisms-risk Management through forward contracts.

FOREX RISK MANAGEMENT 09 Hours

Transaction risk exposure risks- internal strategies- shifting of risk- sharing of risk-
exposure netting and offsetting External strategies – money market Hedge- currency
swaps- interest rate swaps- Economic consequences of exchange rate changes- Managing
Risk .

FOREX MANAGEMENT IN INDIA 09 Hours

Fixed and fluctuating rates-rupee convertibility NOSTRO-VOSTRO-LORO Accounts-
Exchange control Measures- relevance Foreign Exchange reserves of India- composition
and Management- monetary and Fiscal policy and its impact on foreign exchange
reserves in India.
TEXT BOOK
1. M.Y. Khan & P.K. Jain : Financial Management – Text and Problems; Tata McGraw Hill
Publishing Co. Ltd., New Delhi, 2015
2. Prasanna Chandra : Financial Management – Theory & Practice; Tata McGraw Hill
Publishing Co. Ltd., New Delhi, 2014
REFERENCE BOOKS
1. Jeevanandam C., Foreign Exchange, Practice, Concepts & Control, Sultan Chand & Sons,
New Delhi, 2016
2. Chaudhuri BK & Agarwal OP, Foreign Trade & Foreign Exchange, HimalayaPublishing
House, Mumbai, 2016
3. Apte PG, International Financial Management, Tata McGraw Hill PublishingCompany Ltd.,
New Delhi, 2015
4. Rajwade AV, Foreign Exchange, International Finance & Risk Management,Academy of
Business Studies, New Delhi, 2014
5. Indian Institute of Banking and Finance, International Banking, Mumbai, 2014

`
 L T P Credit
MAS18R5207 Financial Economics
4 0 0 4
Pre-requisite : MAS18R5103 Financial Engineering and Loss Reserving
Course Category: Elective Course Type: Theory
Course Objective(s):
The aim of the Actuarial Risk Management subject is that upon successful
completion, the candidate should understand strategic concepts in the
management of the business activities of financial institutions and
programmes, including the processes for management of the various types of
risk faced, and be able to analyse the issues and formulate, justify and present
plausible and appropriate solutions to business problems.
Course Outcom(s):

CO1 To recognize and appreciate the diversity of views that have historically been
expressed or may reasonably exist about economic problems and alternative economic
systems

CO2 To explain market structure, including perfect competition, imperfect competition

under which a firm operates.

CO3 To explain the income approach to computing GDP, & evaluate other measures of
nations production of goods and services.

CO4 To demonstrate an integration of the subdivisions and the application of these

subdivisions to current economic issues and problems.

CO5 To understand the ideas, concepts, tools, theories, and models of economics.

Mapping of Course Outcome(s):

CO / PO
PO 1 2 3 4 5 6 7 8 9 10 11 12
CO1 S M L L M M L
CO2 S M L L L L M M L
CO3 S M L L L L M L M M L
CO4 S M L L L L M L M M L
CO5 S M L L M L M M L

Unit: I : 09 Hours
Introduction to economics - Supply and demand – Elasticity - Consumer choice - Utility
and investors - Stochastic dominance, utility and insurance

UNIT II: 09 Hours

Market Structure - Theory of the firm - Perfect competition- Imperfect competition -
Introduction to macroeconomics - Public finance and money

UNIT III: 09 Hours

`
National income- The Keynesian model - The money market - Aggregate demand and
aggregate supply

UNIT IV: 09 Hours

Macroeconomic policy - Inflation and unemployment - Economic growth - International
trade and the balance of payments - Exchange rates.

UNIT V: 09 Hours
Hypocrites of option prices – determinants of option prices – upper and lower bounds for
option prices – Black Scholes analysis and arbitrage free pricing – numerical procedures
used in derivative pricing and valuation.

Recommended Text
1. Financial Economics by Zvi Bodie, David Cleeton, Robert C. Merton 2008.
2. Annual Review of Financial Economics by Andrew W. Lo, Robert C.
Merton2009.
3. Microeconomic Theory, by Edward Malinvaud 2016
Reference Books
1. Finance, Economics, and Mathematics by Oldrich A Vasicek, Robert C.
Merton, 2015
2. Financial Economics Frank J. Fabozzi, Edwin H. Neave, Guofu Zhou
October 2011, ©2012
3. Macroeconomics + Code Card for Discover Econ by Campbell R. McConnell,
et al. 2012

`
 L T P Credit
MAS18R5208 ASSET AND LIABILITY MANAGEMENT
4 0 0 4
Pre-requisite : MBA18R5104-Pimciples of Banking and Insurance
Course Category: Elective Course Type: Theory

Course Objective(s):
The aim of the Asset and Liability Management program is to provide focused,
practical training in all the key management issues of this important discipline. The
program will have a particular focus on Interest Rate Risk in the Banking Book (IRRBB)
within commercial bank structures. The program will cover all major methodologies for
the measurement and management of IRRBB and best practice hedging techniques.
Sessions are reinforced with team-based, practical case studies, worked examples and
suggested solutions.
Course Outcome(s):
After completing this course, the student will be able to:

CO1 : To identify the banking system of the country.

CO2 : To analyze the all risks pertaining with our banking process.
To describe the Asset management system of the banking
CO3 :
organization.
To describe the Liability management system of the banking
CO4 :
organization.

CO5 : To examine the various tools of Asset and Liability Management.

Mapping of Course Outcome(s):

CO / PO
PO 1 2 3 4 5 6 7 8 9 10 11 12
CO1 S M L L M M L
CO2 S M L L L L M M L
CO3 S M L L L L M L M M L
CO4 S M L L L L M L M M L
CO5 S M L L M L M M L

UNIT-I : BANKING SYSTEM 09 Hours

Banking Functions and Operations - Types of Banks - Audit of Banks - Competition in
the Banking System - Bank Supervision and Surveillance - Customers of Banks - Bank
products and Services - Relationships with Other Institutions

`
UNIT-II :BANKING RISKS 09 Hours
Capital Adequacy Risk - Asset Quality Risk - Management Risk - Earnings, Efficiency
and Profitability Risk - Liquidity Risk - Credit Risk - Interest Rate Risk - Interest Rate
Sensitivity/Gap/Mismatch Risk - Foreign Exchange Risk - F/X Position Risk - Strategic
Risk
Reputation Risk - Market Risk - Operations Risk - Fiduciary Risk - Contingencies and
Commitments Risk - Regulatory/Legal/Compliance Risk - Accounting and Reporting
Risk - - Computer Risk - Country/Sovereign Risk - Capital Markets Risk - Money
Markets Risk - Pricing Risk - Concentration Risk - Default Risk - Large Deposit/Loan
Risk - Fraud/Defalcation/Misuse/Theft/Robbery Risk - Natural Disaster Risk.

UNIT-III :ASSET MANAGEMENT 09 Hours

Types of Assets - Characteristics of Assets - Asset Behavior - Asset Quality - Asset
Concentration - Asset Maturity Management - Asset Income Management - Asset Mix
Management - Managing Non-Interest Earning Assets - Asset Management Strategies

UNIT-IV :LIABILITY MANAGEMENT 09 Hours

Types of Liabilities - Characteristics of Liabilities - Liability Behavior - Quality of
Liabilities - Liability Concentration - Liability Maturity Management - Liability Expense
Management - Liability Mix Management - Liability Management Strategies

UNIT-V :ASSET AND LIABILITY MANAGEMENT TOOLS 09 Hours

ALCO Asset and Liability Management Committee - ALM Strategies - Duration Analysis -
Risk Management Concepts - VAR value at Risk Analysis - Stress Test - Scenario
Analysis - Role of Securitization in ALM, Asset Securitization - Forward, Swaps, Futures,
Options, Hedging - ALM Asset and Liability Management and the Banking Law.

TEXT BOOK
1. Jawwad AhamedFarid: Asset Liability Management. 3rd Edition; Tata McGraw Hill
Publishing Co. Ltd., New Delhi, 2015
2.
REFERENCE BOOKS
1. Risk Management in Banking by Joel Bessis, Sultan Chand& Sons, New Delhi, 2016
2. Managing Bank Capital by Chris Matten, HimalayaPublishing House, Mumbai, 2016
3. Apte PG, International Financial Risk Management, Tata McGraw Hill Publishing
Company Ltd., New Delhi, 2015

`
 L T P Credit
MAS18R5209 Insurance Product Design & Futures
4 0 0 4
Pre-requisite : MBA18R5104-Pimciples of Banking and Insurance
Course Category: Elective Course Type: Theory

Course Objective(s):
The aim of the Asset and Liability Management program is to provide focused,
practical training in all the key management issues of this important discipline. The
program will have a particular focus on Interest Rate Risk in the Banking Book (IRRBB)
within commercial bank structures. The program will cover all major methodologies for
the measurement and management of IRRBB and best practice hedging techniques.
Sessions are reinforced with team-based, practical case studies, worked examples and
suggested solutions.

Course Outcome(s):
After completing this course, the student will be able to:

CO1 To Identify what insurance is, why insurance works and how to
determine insurance need

CO2 To explain insurance operation, including functions of insurance, and the

use of insurance as a tool to avoid losses and reduce risk

CO3 To familiarize themselves with major insurance products, such as life

insurance, health insurance, property and liability insurance.

CO4 To compare various kinds of insurance plans as well as the contract

selection criteria from a cost - benefit point of view.

CO5 To use insurance as a device to manipulate non-public and/or organization

property.

Mapping of Course Outcome(s):

CO / PO
PO 1 2 3 4 5 6 7 8 9 10 11 12
CO1 S M L L M M L
CO2 S M L L L L M M L
CO3 S M L L L L M L M M L
CO4 S M L L L L M L M M L
CO5 S M L L M L M M L

Unit :I 09 Hours
Insurance Product: Insurance – History - Regulation and Control - Types of Insurance –
Contract and Policy – Life insurance products.
Unit : II 09 Hours
`
Practice of life insurance: introduction – organizing – importance activities – Agent –
interim Bonus – Death Cover – joint life policies – Survival Benefit - Term Assurance –
Pure Endowment .

Unit : III 09 Hours

Practice Of General Insurance : The Insurance Act, 1938 - General Insurance Council –
Employee‘s State Insurance Act, 1948 - - Fire and Marine Coverage’s - Miscellaneous
Coverage’s - Specialized Insurances
.
Unit : IV 09 Hours
Regulations of insurance business: Main functions of IRDA and Insurance Councils -
IRDA (Licensing of Insurance Agents) Regulations, 2000 - IRDA (Micro Insurance
Regulations), 2005.

Unit : V 09 Hours
Financial Derivatives : Introduction - The Structure of Options Markets - The Structure
of Forward and Futures Markets - Principles of Pricing Forwards, Futures, and Options
on Futures- Futures Arbitrage Strategies.

Recommended Text
1. Life Insurance - Kenneth Jr.Black , Publisher : Prentice Hall, 12th Edition –
2014.
2. Law of Insurance – Dr. Avar Singh – 3rd Edition 2016.
Reference books
1. Life Insurance Textbook Part A Learning material on Life insurance for the
Institute of Actuaries of Australia Part III Course 2A Life Insurance. Edition
v1, June 2016 © Institute of Actuaries of Australia 2016.
2. Insurance Laws – Bharat Law House – 17th Edition , 2015.

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 ELECTIVES
GROUP II (FINANCE & BANKING SERVICES)
Course Code Course Title L T P C
MBA18R5214 Financial Derivatives 4 0 0 4
MBA18R5215 Financial Institution and Services 4 0 0 4
MBA18R5218 Micro Finance 4 0 0 4
MBA18R5220 Security Analysis and Portfolio Management 4 0 0 4
MBA18R5266 Financial Inclusion 4 0 0 4
International Banking : Legal and Regulatory
MBA18R5269 4 0 0 4
Aspects

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 L T P Credit
MBA18R5214 FINANCIAL DERIVATIVES
4 0 0 4
Pre-requisite: MBA18R5111-Financial Management
Course Category: Major Elective Course Type: Theory
Course Objective(s):
This course aims to providing an in-depth understanding of financial derivatives in terms
of concepts, structure, instruments and trading strategies for profit and risk
management.

Course Outcome(s):
Upon completion of the course students are able to

CO1 Explain the financial derivatives and the institutional structure of the
markets
CO2 Demonstrate the various theories of derivatives .
CO3 Develop the analytical tools necessary to price instruments.
CO4 Assess the risk level of Identify the right time for buying and selling
securities by performing technical analysis.
CO5 Analyze, select, and monitor clients and their own portfolio by evaluation,
construction and revision.

Mapping of Course Outcome(s):

CO/ PO
PO 1 2 3 4 5 6 7 8 9 10 11 12
CO1 H M
H H M M
CO2
H H M H H M
CO3
M H H H
CO4
H H M
CO5

Unit 1:INTRODUCTION 09 Hours

Brief History of Derivatives, Evolution of Commodity, Currency, Stocks and Interest Rate
Derivatives- Structure of Derivative Markets - Differences between Cash and Future
Markets – Types of Traders – OTC and Exchange Traded Securities – forward contracts,
futures contracts – Options – Swaps – Types of Settlement – Uses and Advantages of
Derivatives – Risks in Derivatives – Cases (Barings Bank, MG refining Marketing Inc
(MGRM).

Unit 2:THEORY OF DERIVATIVES 09 Hours

Random behaviour of assets – Black, scholes model, binomial model - Interest rate
derivatives – Internal rate modeling - Futures – stock index, currency, forwarding
futures, swaps.

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Unit 3:OPTIONS 09 Hours
Types: barrier options – path-dependent options, Asian options, look back options -
Defects in Black – Scholes model, discrete hedging, transaction costs, stochastic
volatility, speculating with options hedging.

Unit 4:PORTFOLIO MANAGEMENT 09 Hours

Value at risk – Credit risk, credit derivatives, risk metrics, credit metrics and crash
metrics - Pricing derivative securities.

Unit 5:DERIVATIVES IN INDIA 09 Hours

Evolution of Derivatives Market in India – regulations, framework, exchange trading in
derivatives – Commodity Futures – Contract Terminology and Specifications for Stock
Options and Index Options in NSE – Contract Terminology and specifications for stock
futures and Index futures in NSE – Contract Terminology and Specifications for Interest
Rate Derivatives.

TEXT BOOKS
1. John. C. Hull, Options, Futures and other Derivative Securities, 1st edition,
Prentice Hall India Pvt., Ltd., 2005.
2. Gupta S. L. (2010). Financial Derivatives. New Delhi: Prentice Hall of India Limited

REFERENCES
1. Keith Redhead, Financial Derivatives – An Introduction to Futures, Forwards,
Options and SWAPs, 1st edition, Prentice Hall India Pvt. Ltd., 2004.
2. Vohra N.D. and Bagri. P.R., Futures and Options, 2nd edition, Tata McGraw Hill,
New Delhi, 2003.
3. Hall, Global Derivatives: A Strategic Risk Management Perspective Andersen, 2nd
edition, Prentice Hall India Pvt., Ltd., 2006.
4. Hull, Fundamentals of Futures and Options Markets, 5th edition, Prentice Hall of
India Pvt. Ltd., New Delhi, 2006.

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 L T P Credit
MBA18R5215 FINANCIAL INSTITUTION AND SERVICES
4 0 0 4
Pre-requisite: MBA18R5111-Financial Management
Course Category: Major Elective Course Type: Theory

Course Objective(s):
The core objectives of this course are to understand the theories of financial
intermediaries and the importance role of financial institutions in the global economy
and evaluate the performance of different types of financial institution. And also identify
the main types of risk financial institutions are exposed to and apply different methods to
measure those risks to suit different contexts.

Course Outcome(s):
After completing this course, the student will be able to:
CO1: Describe the dimensions of performance and risk relevant to financial firms. And
Calculate contemporary measures of financial measures of performance and risk.
CO2: Describe contemporary managerial risk management oversight processes and
explain how the financial services component industries (insurance, banking,
securities, real estate and financial planning) interact among themselves.
CO3: Design hedging strategies to manage market risks (e.g., currency, commodity,
economic and political).
CO4: Evaluate the economic environment and the impact of governmental economic
policies on consumers and financial institutions.
CO5: Describe the impact that financial innovation, advances in technology, and changes
in regulations has had on the structure of the financial firms/industry.
Mapping of Course Outcome(s):
CO / PO
PO 1 2 3 4 5 6 7 8 9 10 11 12
CO1 S S S M
CO2 S M
CO3 L M S
CO4 S M M
CO5 S

Unit 1:Introduction to Banking 09 Hours

Indian Financial System - Liberalization in Banking Sector - Banking Services - Risk
Management - Bank Norms, Banking Regulation Act, ATM – online banking.

Unit 2:Commercial Bank 09 Hours

Size, Structure, and Composition of Industry, Wholesale and Retail Banking Services,
Regulators and Types of Regulation, Global Issues.

Unit 3:Investment Bank 09 Hours

Securities Firm and Investment Bank, Services and Trading of Securities firm and
Investment Bank, Cash management, Mergers and acquisitions, Regulation.

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Unit 4: Lending Institutions and Insurance Companies 09 Hours
Savings Associations, Savings Banks, Credit unions, Finance companies - Size,
structure, and composition of Industry, Regulators and Types of Regulation. Life
Insurance Companies and Casualty Insurance Companies, Recent trends and
Regulation, Global Issues.

Unit 5: Fund Based Services 09 Hours

Bills discounting – Debt Securitization – Housing finance – Insurance Services, venture
Capital Financing – Stock Broking – Credit Rating – Real Estate Financing

Text Book(s):
1. Peter S. Rose, Sylvia C. Hudgins, (2014). Bank Management and FinancialServices,
8/e; New Delhi: Tata McGraw-Hill.
2. Khan, M.Y. (2015). Financial Services, 8/e; New Delhi: McGraw Hill Education.

Reference(s):
1. Shanmugam, R. (2014). Financial Services, New Delhi: Wiley India
2. Gurusamy, Financial Services and Markets, 1st edition, Thomson Learning, New
Delhi, 2007.
3. Zvi Bodie, Alex Kane, Alan J Marcus and Pitabas Mohanty, Investments, 6th edition,
Tata Mc-Graw Hill, New Delhi, 2006.
4. Jeff Madura, Financial Markets & Institutions, 7th Edition, CENGAGE Learning,
Delhi, 2006.
5. Agarwal, OP, Banking & Insurance, Himalaya Publishing House, Mumbai
6. George E Rejda, Principles of Risk Management & Insurance, Pearson Education,
New Delhi
7. Joshi and Joshi (2009). Managing Indian Banks: The Challenges Ahead, 3/e;
NewDelhi: Sage Publications

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 L T P Credit
MBA18R5218 MICRO FINANCE
4 0 0 4
Pre-requisite: MBA18R5111-Financial Management
Course Category: Major Elective Course Type: Theory

Course Objective(s):
This course introduces microfinance as a tool for social and rural development. On
completion of this course the students will be able to, recognise various credit lending
models, identify role of microfinance institutions and assess the risk associated with
microfinance

Course Outcome(s):
Upon completion of the course students are able to
Elaborate the manner in which microfinance may be utilized to accelerate the
CO1
expansion of local micro businesses
Be familiar with the process of finding loan recipients and delivering a
CO2
microfinance pitch
Be knowledgeable about the benefits and controversies of microfinance in
CO3
modern economies
CO4 Measure the effects and value of individual microloans to businesses
Demonstrate the process of microloans and its corresponding application
CO5
process, with emphasis in public profile creativity

Mapping of Course Outcome(s):

CO/ PO
PO 1 2 3 4 5 6 7 8 9 10 11 12
CO1 S M
CO2 L S
CO3 M S
CO4 M S
CO5 S M
Unit 1: INTRODUCTION TO MICROFINANCE 09 Hours
Fundamentals of Microfinance – Evolution of Microfinance – Need and Objectives of the
Microfinance Institution - Supply, Intermediation and Regulations of Microfinance -
Government Mandates for Sectoral Credit Allocations - Strategic Issues in Microfinance.
Micro finance models - Generic models viz. SHG, Grameen, and Co-operative, variants
SHG NABARD model, SIDBI model, SGSY model, Grameen Bangladesh model, NMDFC
model, credit unions etc. unbranded primitive models - Emerging practices of
Microfinance in India state wise cases, Emerging Global Microfinance practices.

Unit 2: PRODUCTS AND SERVICES 09 Hours

Financial Intermediation – Credit - Savings – Insurance – Credit Cards and Smart Cards
– Payment Services – Social Services.
Unit 3: DESIGNING AND MONITORING FINANCIAL PRODUCTS AND SERVICES
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 09 Hours
Cash Patterns, Loan Terms, and Payment Frequency – Client Cash Patterns and Loan
Amounts – Loan Collateral – Loan Pricing – Calculating Effective Rates – Demand for
Savings Services – Legal Requirements for Offering Voluntary Savings Services – Types of
savings Product for Micro entrepreneurs – Liquid Accounts – Semi liquid Accounts –
Fixed - Term Deposits.

Unit 4: MEASURING PERFORMANCE 09 Hours

Accounting Adjustments – Adjusting for Subsidies and Inflation – Portfolio Quality –
Productivity and Efficiency Ratios, financial viability, profitability ratios – Leverage and
Capital Adequacy – Performance Management, delinquency management, productivity
and efficiency management – Risk Management

Unit 5: MICROFINANCE IN INDIA 09 Hours

Challenges to Microfinance movement – Demand and Supply of Micro financial services –
State Intervention in rural credit – RBI Initiatives - NABARD & SHG – Bank Linkup &
Programs- – Governance and the constitution of the Board of various forms of MFIs –
Intermediaries for Microfinance –State sponsored Organizations.

TEXT BOOKS
1. Seethapathi K., Sivaram Y.G. and Rama Krishna Rao, Financial Intermediation:
Innovations and Practices, 2nd edition, Icfai University Press, Hyderabad, 2004.
2. Nageswara Rao Katuri, Rural Credit and Micro Finance, 1st edition, Icfai University
Press, Hyderabad, 2006.

REFERENCES
1. SN Ghosal, Some Radical Thoughts on Microfinance, 5th edition, Icfai University
Press, Hyderabad, 2005.
2. Y Chandra Sekhar, Urban Infrastructure: An Introduction, 2nd edition, Icfai
University Press, Hyderabad, 2005.
3. Hawawini, Finance for Executives: Managing for Value Creation, 2nd edition,
Thomson Learning, New Delhi, 2007.
4. Armendáriz, Beatriz, and Marc Labie (eds.). 2011. The Handbook of Microfinance.
Singapore: World Scientific.
5. Armendáriz de Aghion, Beatriz, and Jonathan Morduch. 2005. The Economics of
Microfinance. Cambridge, MA and London: The MIT Press.
6. Joanna Ledgerwood. 2013. The New Microfinance Handbook. A Financial Market
System Perspective. Washington, D.C: The World Bank
7. Labie, Marc, and Roy Mersland. 2011. “Corporate Governance Challenges in
Microfinance”. In The Handbook of Microfinance edited by Beatriz Armendáriz and
Marc Labie, 283-298. Singapore: World Scientific
8. Ledgerwood, Joanna et al. 2013. “Chapter 14. Monitoring and Managing Financial
and Social Performance”. In The New Microfinance Handbook. A Financial Market
System Perspective, edited by Joanna Ledgerwood et al., 341-349. Washington,
D.C: The World Bank.
9. Beatriz Armendariz and Jonathan Morduch, “The Economics of Microfinance”,
Prentice-Hall of India Pvt. Ltd. Delhi, 2005.

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 SECURITY ANALYSIS AND PORTFOLIO L T P Credit
MBA18R5220
MANAGEMENT 4 0 0 4
Pre-requisite: MBA18R5111-Financial Management
Course Category: Major Elective Course Type: Theory

Course Objective(s):
1. To familiarize the student with the various types of securities and functioning of
stock markets.
2. To impart the knowledge in government regulations and legal issues related
securities.
3. To equip the student to understand the economic, industry and company
related factors on the price behaviour of securities.
4. To provide insight to the various analytical techniques used in evaluation and
valuation of the securities.
5. To provide skills needed to create and maintain an appropriate portfolio for a
client and for themselves

Course Outcome(s):
Upon completion of the course students are able to

CO1 Identify the various investment alternatives and construct investment

planning.
CO2 Know about Capital Market, participants and its procedure for trading and
fund raising.
CO3 Analyse the economic, industry and company factors and predict the
company performance and determine the intrinsic value of an asset.
CO4 Identify the right time for buying and selling securities by performing
technical analysis.
CO5 Analyze, select, and monitor clients and their own portfolio by evaluation,
construction and revision.

Mapping of Course Outcome(s):

CO/ PO
PO 1 2 3 4 5 6 7 8 9 10 11 12
CO1 H M
H H M M
CO2
H H M H H M
CO3
M H H H
CO4
H H M
CO5

Unit 1: INVESTMENT SETTING 09 Hours

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Investment setting – Securities – Sources of investment information – Security market
indications – Security Contract regulation Act.Investor Protection.

Unit 2:CAPITAL MARKETS 09 Hours

Over view of capital market, Institutional structure in capital market, Reforms and state
of capital market, New issue market and problems, Securities and Exchange Board of
India (SEBI), Debt Market, Stock Exchanges –NSE, BSE and MCA.

Unit 3:FUNDAMENTAL ANALYSIS 09 Hours

Economic Analysis – Economic forecasting and stock Investment Decisions – Forecasting
techniques.Industry Analysis – Industry classification.Economy and Industry
Analysis.Industry life cycle – Company Analysis Measuring Earnings – Forecasting
Earnings – Applied Valuation Techniques – Graham and Dodds investor ratios.

Unit 4:TECHNICAL ANALYSIS 09 Hours

Fundamental Analysis Vs Technical Analysis – Charting methods – Market
Indicators.Trend – Trend reversals – Patterns - Moving Average – Exponential moving
Average – Oscillators – ROC Momentum – MACD – RSI – Stoastics.

Unit 5:PORTFOLIO MANAGEMENT 09 Hours

Portfolio Theory – Portfolio Construction – Diagnostics Management – Performance
Evaluation – Portfolio revision- Mutual Funds

TEXT BOOKS
1. Reilly K. and Keith C. Brown, Investment Analysis and Portfolio Management, 7th
edition, CENGAGE Learning, Delhi, 2007.
2. Fischer, E. Donald and Ronald, J. Jordan (2011). Security Analysis and Portfolio
Management, 6/e; New Delhi: Pearson Education.

REFERENCES
1. Punithavathy Pandian, Security Analysis and Portfolio Management, 2nd edition,
Vikas Publishing House Pvt., Ltd., 2001.
2. Chandra, Prasanna (2012). Investment Analysis and Portfolio Management,
4/e:New Delhi: McGraw Hill Education
3. Ranganathan, M and Madhmathi, R (2012). Security Analysis and Portfolio
Management, 2/e; New Delhi: Pearson Education

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 L T P Credit
MBA18R5266 FINANCIAL INCLUSION
4 0 0 4
Pre-requisite : MBA18R5104-Pimciples of Banking and Insurance
Course Category: Elective Course Type: Theory

Course Objective(s):
Financial inclusion means that individuals and businesses have access to useful
and affordable financial products and services that meet their needs – transactions,
payments, savings, credit and insurance – delivered in a responsible and sustainable
way. Financial access facilitates day-to-day living, and helps families and businesses
plan for everything from long-term goals to unexpected emergencies. As accountholders,
people are more likely to use other financial services, such as credit and insurance, to
start and expand businesses, invest in education or health, manage risk, and weather
financial shocks, which can improve the overall quality of their lives.
Course Outcome(s):
After completing this course, the student will be able to:

CO1 : Explain basic concepts of financial inclusion

CO2 : Describe role micro finance in financial inclusion
Discuss financial inclusion strategies to strengthen financial status of
CO3 :
a country
CO4 : Describe RBI regulations pertaining with financial inclusions
CO5 : Discuss recent trends in financial inclusion.

Mapping of Course Outcome(s):

CO / PO
PO 1 2 3 4 5 6 7 8 9 10 11 12
CO1 S M S
CO2 L S M
CO3 S
CO4 M
CO5 L L S

UNIT-I BASIC CONCEPTS OF FINANCIAL INCLUSION 09 Hours

Definition – Importance - Role of Financial Inclusion towards inclusive growth - Role of
Financial institutions in financial inclusion – Institutional structure and mechanisms -
Challenges of Inclusive banking.

UNIT-II ROLE MICRO FINANCE IN FINANCIAL INCLUSION 09 Hours

Micro credit - Micro insurance scheme - Business Facilitators and Business
Correspondents in rural financing- SHGs/NGOs - linkages with banking.

UNIT-III FINANCIAL INCLUSION STRATEGIES 09 Hours

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Initiatives for inclusion - Lead banking scheme (LBS) - No frills account - BSBD Accounts
- Business Correspondents (BC) system - Swabhiman Campaign – PMJDY – Technologies
Role in Delivering Accessible Financial Services to the Poor.

UNIT-IV RBI REGULATIONS 09 Hours

Priority sector lending - Open accounts for Self Help Groups - Relaxation on Know Your
Customer(KYC) Norms – Opening branches in unbanked rural areas – Licensing new
banks - non- banking entities involved in financial inclusion.

UNIT-V RECENT TRENDS IN FINANCIAL INCLUSION 09 Hours

Financial Inclusion for Sustainable Development - Role of IT and Intermediaries
Financial Inclusion - An Economic Growth Driver Financial Services - Trends and Recent
Innovations.

TEXT BOOK
1. Financial Inclusion in India: Policies and Programmes , N. Mani, New Century
Publications, 2015.
2. Marketing Techniques for Financial Inclusion and Development by Jain, Dhiraj, Sharma,
Adya, IGI Global, 2018
REFERENCE BOOKS
1. Talking Financial Inclusion in Liberalised India, M. S. Sriram, Roudledge
Publications – 2017
2. Financial Inclusion in India, By DR.S.V. Shinde, Laxmi Book Publication, 2015.
3. Uppal RK &Pooja, Transformation in Indian Banks-Search for better tomorrow,
Sarup Book Publisher Private Ltd., New Delhi, 2014

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 INTERNATIONAL BANKING: LEGAL AND L T P Credit
MBA18R5269
REGULATORY ASPECTS 4 0 0 4
Pre-requisite : MBA18R5104-Pimciples of Banking and Insurance
Course Category: Elective Course Type: Theory
Course Objective(s):
Legal & Regulatory Aspects of banking deals with related legal and regulatory
aspects that has a bearing on Banking Operations and are woven in to the
units/chapters to make their relevance easily understandable. Banking and Business
laws in so far as they relate to day to day banking operations will also be covered at
appropriate places. Case laws will be included, wherever appropriate.
Course Outcome(s):
After completing this course, the student will be able to:

CO1 : The legal & regulatory framework of the international banking system
The various laws and enactments affecting day to day Banking
CO2 :
operations Internationally
Demonstrate advanced knowledge of the theories and origins of
CO3 :
financial services regulation.
Evaluate key policy debates surrounding future development of
CO4 : international and domestic financial services regulation and
enforcement.
CO5 : Apply acquired legal knowledge in solving practical problem cases.

Mapping of Course Outcome(s):

CO / PO
PO 1 2 3 4 5 6 7 8 9 10 11 12
CO1 S S L
CO2 S M M
CO3 S L M
CO4 M M S
CO5 S

UNIT-I: REGULATION OF INTERNATIONAL BANKING 09 Hours

Regulation, Deregulation, Reregulation’s $ Regulatory Dialectic-Regulatory Arbitrage-
Regulatory Capture-Basle Concordat-Capital Adequacy Ratios-Loan Los Provisioning

UNIT-II: CONFLICT OF LAWS 09 Hours

The importance of the choice of laws-Factors influencing choice of laws-Express choice of
law-The proper law concept-Market practice in relation to choice of law clauses-The
importance of “conflict” principles to international lending

UNIT-III:JURISDICTION 09 Hours
Express choice of forum clauses-Basis of Jurisdiction: express submission to
jurisdiction-Connections between either the plaintiff or the defendant and jurisdiction-
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Transaction connections-Locations of assets connection-The doctrine of forum non-
convenience-Jurisdiction of the English Courts-in particular over registered companies.

UNIT-IV: EXCHANGE CONTROLS 09 Hours

Introduction of Exchange Control regulation-Common exchange control clauses found in
International loan agreements, Market practices in relation to exchange controls.

UNIT-V: COUNTRY RISK 09 Hours

Assessment of country/sovereign risk-Developed and developing countries and their
particular risk features-Legal and practical problems associated with country lending-
Sovereign immunity, political disturbance, state succession. International Debt Crisis-
Origin-Size-Causation, International measures combat the problem-Re-scheduling, New
Money, Debt-Equity Swaps, IMF Conditionality and SAP, Baker Plan, Brady Plan.
Mexicial Peso Crisis 1994 and after-IMF and World Bank move on debt initiative.

TEXT BOOKS
1. International Banking Legal & Regulatory Aspects by IIBF - Macmillan Publishers
India, 2013.
2. Law and Practice of Banking by P. N. Varshney and GopalSwaroop, Himalayas
Publiction, 2015
REFERENCE BOOKS
1. The Law and Practice of International Banking by Charles Proctor – Oxford, 19
August 2010.
2. The Foundations and Future of Financial Regulation, MadsAndenas, Iris H-Y Chiu,
Roudledge Publication, 2013
3. The Law Relating to International Banking by Andrew Haynes - Bloomsbury
Professional, 2010.