“The curriculum has been designed keeping in view that a vast majority of students would have no prior exposure to the world of Finance and Risk Management”
…says Ashok C Mathur, the Course Coordinator and designer of ISCOM’s Post Graduate Programme in Risk Management. An MBA from IIM Ahmedabad with specialisation in Banking, Finance and Management Information SystemsMr Mathur has over 30 years of working experience. He has over 7 years of experience in software development and has spent some years in consulting in Production Management. He is also a founding faculty member of a bank's training college and has trained over 3,000 students there. In this exclusive e-interview with Sarita Kutty, Mr Mathur outlines the objective of the course and offers insights into what makes ISCOM’s PGP in Risk Management different from the others.
Could you share with us the details of ISCOM’s PGP in Risk Management?
ISCOM’s Postgraduate Programme in Risk Management (PGPRM) is a 1-year, full-time certificate programme aimed at preparing Finance/Treasury executives with a sound grounding in risk management and its arithmetic so that they can provide timely and vital risk related inputs to organisations where they work. Such executives would find gainful employment in Corporate Finance departments as well as financial institutions like banks, insurance companies and credit rating corporations.
Curriculum: The curriculum has been designed keeping in view that a vast majority of students would have no prior exposure to the world of Finance and Risk Management.
As exposure to Accounting knowledge is also not compulsory, the curriculum takes the student through the necessary preliminary knowledge to start the study of Finance.
The curriculum focuses on imparting of appropriate financial skills in areas of Working Capital Management, Funds Management and Foreign Exchange Management. It also teaches valuable skills in banking and insurance.
The curriculum covers two other areas that have a direct bearing on conduct of the finance function:
First, as Finance function discharges the residual risks that an organization undertakes, the curriculum stresses the Risk Management process and the arithmetic attached to it.
Second, Information Technology has an important enabling role in the discharge of Finance function and hence the course exposes the students to IT related risks appropriately.
Finally, the curriculum aims to build skills of the students in self improvement. In this, the curriculum aims to go beyond the superficial communication skills to equip the students with life–long skills in self learning, thinking, planning and execution.
Please give us an overview of the syllabus.
- ACCOUNTING & FINANCE: Introduction to Accounting, Accounting Entities, Introduction to Finance, Nature of Financial Management.
- WORKING CAPITAL FINANCE: Cash Flow Management; Budgeting and Predicting Cash Flows, Managing Creditors, Bank Borrowings.
Short term Investment Management.
Nature of Equity and Debt, Risk Management in Equities, Promoters share vs. Other Equity Shareholders, Shareholder's Agreements, Non Voting Rights; various classes of equity, Protection of Minorities; Independent Directors, Compensation and Other Board Committees.
Risk Management in Debt, Seniority, Subordination and Security, Timings and Magnitudes of Cash Flows; Defaults; Reorganization; Conversion; Bankruptcy.
Foreign Exchange Market - exchange rate determination – purchasing power parity and interest rate parity principles – major currencies and transaction volumes in global markets
Exchange arithmetic – direct, indirect, cross-currency quotes – spot & forward settlement – ACI convention - forward calculations – booking / cancellation / roll-over with exercises.
Derivatives: OTC and Exchange traded products – currency & interest rate derivatives - options vs. forwards – Forwards vs. futures – evolution of derivatives market in India – introduction to credit
derivatives
Currency options – option terminology & pricing – ATM / ITM / OTM plain vanilla put / call options – intrinsic value and time value measurement.
FX Risk Management – identification of exposures – transaction, translation & economic exposures – exchange rate and interest rate volatility – quantification of risk
Approach to FX risk management – revenue and balance sheet exposures – hedging strategy – monitoring risk in open positions – risk limits
Use of derivatives n risk management – risks in derivatives – cost reduction schemes – current & projected exposures - RBI guidelines on prudential practices
Quantitative Measurements of Risk.
Nature of Risk Management: Risks and Rewards, Framework for Risk Management, Value at Risk, ISO Standards, De-risking, Risk and Probability, Securing Assets, insurance & Self Insurance, Moral hazards.
- MANAGEMENT OF INSURANCE RISK IN CORPORATE FIRMS
Types of Risks and Policies ,Risk Theory – Risk audit, Fire, Floods etc insurance for Civil Structures, Insurance for Stocks in ware houses and within factory, Key Person Cover; Group Insurance; Mediclaim, Maritime Insurance for Inland, Export and Import Cargo ; Exim Bank Insurance
- IT RELATED RISK
- LEGAL INCLUDING TAXATION
- SOFTSKILLS & PERSONALITY
What about the pedagogy?
The pedagogy is as follows:
- Knowledge by lectures and self study
- Skills by repeated classroom and home work examples of numerical problems.
- Case studies and class room discussions.
- On line open book tests.
Tell us about the fees structure and when is the last date for admission to this course?
The fee for the 1-year PGP in Risk Management is Rs 3 lakh and includes boarding fees. The last date for admission to this course is 13th August 2011, and the programme will be implemented during 29th August 2010 to 11th August 2012.
Who is the programme aimed at? Also tell us about the admission procedure and eligibility criteria.
The curriculum has been designed keeping in view that a vast majority of students would have no prior exposure to the world of Finance and Risk Management.
As exposure to Accounting knowledge is also not compulsory, the curriculum takes the student through the necessary preliminary knowledge to start the study of Finance.
It is aimed at Graduates and Post graduates with Finance, Commerce, Statistics or Maths background with a minimum 50 percent aggregate.
Candidates who are awaiting their final results can also apply.
What makes ISCOM’s PGP in Risk Management different from the others?
Four things make the programme unique.
- First, there is a backbone of risk management running through out the course. As Finance Department/ Treasury copes with the consequences of risks taken by the organisation, this is an appropriate starting point.
- The programme aims to impart important skills in Working Capital Management.
- The programme imparts skills in Foreign Exchange Management.
- The programme teaches students life long skills of learning and reaching forward.
How many students will be enrolled in this program?
Twenty students.
How will this programme benefit a student and the organization that he would work for?
This is a certificate programme that teaches specialised skills in one area of an organisation’s working. Hence, students employed by the company will become productive straight away and will remain productive for many years. They are ‘promotable’ students.
What is the average starting salary for an MBA in risk management?
The average starting salary for an MBA in risk management is Rs 3 lakh to Rs 4 lakh.
Which sectors offer job opportunities after doing an MBA in risk management?
Students who have an MBA in risk management will find plenty of job opportunities with large corporates, foreign exchange dealers, banks, and other financial companies.
Does ISCOM offer placement assistance for students who enroll for PGPRM in Risk Management?
On successful completion of PGPRM, the students who qualify shall be provided dedicated placement assistance as a part of which each student will be exposed to placement process of minimum four companies working in related domains. |
