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Insurance & Risk Management

used to describe techniques for addressing insurable risks. This form of "risk management" encompasses: risk reduction through safety, quality control , hazard education & Information Technology alternative risk financing, including self-insurance and captive insurance, and the purchase of traditional insurance products, as suitable.

GARP
The Global Association of Risk Professionals (GARP) is the only globally recognized leader in financial risk testing and certification programs, and educational and training activities

FRM
Financial risk management is one of the top skill sets to have in the financial services industry today and offers excellent visibility and outstanding earning potential The Financial Risk Manager (FRM)designation is the globally recognized standard for those who manage risk. Certified FRMs are part of an elite, global network, and are valued by top employers across diverse businesses.

Career Prospect in FRM


Candidates for the FRM designation work in any number of industries, including: Investment banks Commercial banks Central banks Asset management firms Corporations (including nonfinancial corporations) Consulting firms Hedge funds Insurance firms Credit agencies Government/regulatory agencies Risk and technology vendors

Insurance & Risk Management


Definition of Risk typically refer to possiblity of loss or injury created by any activity or person. Risks Management seeks to identify ,assess & measure risk & then develop countermeasures handle it not to eliminate it.

Insurance & Risk Management


Financial Risk Management applies a systematic and logical approach to uncertainties in operations,reputation,credit,liquidity/solvency ,portfolios and markets.

Insurance & Risk Management


Risk should not be viewd as in herently bad.All opportunities comes with some degree of riskTwo sides of the same Coin

Cost of not Managing the Risk


Investors in debt-laden Suzlon Energy saw their wealth erode by a staggering Rs 4,100 crore in less than a year, as value of the wind turbine makers shares more than halved from its 52-week high of Rs 39.10. Shares of Suzlon Energy, which has failed to get more time to repay overseas debt worth $221 million, has taken a severe beating in the past many months. The scrip that touched the 52-week high of Rs 39.10 on October, 2011 has since then tumbled to close at Rs 15.90 on October 12, 2012 on the BSE. The steep slide in value of Suzlon shares has resulted in investors wealth plunging by Rs 4,123 crore in a year.

Contd.
While the companys market capitalisation currently stands at Rs 2,826 crore, it was valued at Rs 6,949 crore when Suzlon shares touched 52-week high last year. The price of Suzlon shares reached a 52-week low of Rs 14.75 on August 31 this year. One of the worlds largest wind turbine makers, Suzlon is grappling with high debt levels, sluggish market conditions and stiff competition in recent times. On Thursday, Suzlon scrips plummeted over five per cent in intraday trading in the wake of bondholders rejecting a proposal to extend the time to repay $221 million debt. The shares slumped over five per cent to Rs 15.70 before paring the losses to close at Rs 16.20, still down 2.11 per cent on that day. On Friday, it shed another 1.8 per cent.

Contd.
The wind turbine maker has a debt burden of $2.2-2.3 billion. Suzlon is one of the major Indian companies to default on debt obligations. The companys Foreign Currency Convertible Bonds (FCCBs) worth $220.8 million (about Rs 1,172 crore) were maturing on October 11 and the company was hoping to get bondholders nod for more time to repay the debt.

Contd.
Suzlon had issued $200 million Zero Coupon Convertible Bonds and $20.8 million 7.5 per cent Convertible Bonds. The company on September 18 had sought extension for redeeming these bonds.

Contd.
We are continuing our engagement with bondholders and expect to have an acceptable solution at the earliest, Suzlon Group Chief Financial Officer Kirti Vagadia had said on Thursday.

Contd.
Regarding bondholders refusal to extend repayment period, it is assumed that it does not bode well for the companys financial position and hence is negative even for the equity shareholders. Meanwhile, State Bank of India, which has a total exposure of Rs 3,500 crore to Suzlon, had said the entity should look at leveraging the balance-sheet of its German subsidiary REpower. Suzlon posted a loss - after shares in associates profit and minority interest - of Rs 848.97 crore at the end of June 2012 quarter.

Insurance & Risk Management


More recently, derivative dealers have promoted "risk management" as the use of derivatives to hedge or customize market-risk exposures. For this reason, derivative instruments are sometimes called "risk management products."