PAPER – 6A : RISK MANAGEMENT
(One paper – Four hours – 100 Marks)
Objective:
(a) To gain knowledge and an insight into the spectrum of risks faced by businesses and to learn techniques of managing risks.
(b) To build capability for applying such learning to address risk related issues in realbusiness scenarios.
1. Introduction to risk
(i) The Concept of Risk
(ii) Risk and Uncertainty: Distinction
(iii) Classification of Risks
(iv) Dynamic Nature of Risks
(v) Types of Risk, including
a) Strategic and Operational Risks
b) Business Risk
c) Financial Risk
d) Information Risk
e) Liquidity Risk
2. Source and evaluation of risks
(i) Identification and Sources of Risk
(ii) Quantification of Risk and various methodologies
(iii) Impact of Business Risk
(iv) Identify and assess the impact upon the stakeholder involved in Business Risk
(v) Role of Risk Manager and Risk Committee in identifying Risk
3. Risk management
(i) Concept of Risk Management
(ii) Objective and Process of Risk Management
(iii) Importance of Risk Management
(iv) Risk Management techniques
4. Quantitative analysis
(i) Population and Sample Analysis
(ii) Bayesian analysis
(iii) Statistical inference and hypothesis testing
(iv) EWMA and GACH Model
(v) Volatility
(vi) Artificial Intelligence and Business Analytics
5. Risk model
(i) VAR
(ii) Stress Testing
(iii) Scenario Analysis
(iv) Country and Sovereign Risk Models and Management
6. Credit risk measurement and management
(i) Understanding the component of credit risk
(ii) Evaluating credit risk
(iii) Mitigating Credit risk
(iv) Qualitative and Quantitative techniques to manage risk
(v) Credit scoring models
7. Risk associated with corporate governance
(i) Evaluation of Risk Associated with Governance
(ii) Description and evaluation of framework for Board level consideration of risk
(iii) OECD Guidelines for Corporate Governance
8. Enterprise Risk Management
Definition, Scope and Techniques
9. Operational Risk Management
Definition, Scope and Techniques