Credit risk management
- Life insurance schemes in connection to saving tax
- Value addition to the company
- Review of literature
- What is risk?
- What is risk management?
- Objectives of risk management function
- What is market risk?
- Types of market risk
- The proposed new capital adequacy framework
- The concept of operational risk
- Tabulation and analysis
- Conclusion and findings
The connect of life insurance has undergone several changes over the years and what has myriad array of attractive options apart from the basic of life cover. Life insurance schemes also offer tax benefits. In today's scenario life insurance solves the three objectives.
Before knowing about the insurance sector after privatization we have to know about the historical perspective of it is so that we can easily differentiate the difference between history and the present performance. We have known that after privatization there has been a tremendous increase in the insurance sector.
I am sure that this may in turn result as a value addition to the company in which I am doing my project because the data which I will collect will help them to know that how much market is not yet insured and also the tastes and preferences of customers pertaining to insurance business.
If the objective is to determine which variable might be causing a certain behavior that is whether there is a cause and effect relationship between variable, casual research must be undertaken. In order to determine causality, it is important to hold the variable that is assumed to cause the change in the other variable constant and than measure the changes in the variable. This type of research is very complex and the researcher can never be completely certain that there are no other factors influencing the casual relationship, especially when dealing with people's attitudes and motivation.
[...] What is Risk Management - Does it eliminate risk? Risk management is a discipline for dealing with the possibility that some future event will cause harm. It provides strategies, techniques, and an approach to recognizing and confronting any threat faced by an organization in fulfilling its mission. Risk management may be as uncomplicated as asking and answering three basic questions: 1. What can go wrong? 2. What will we do (both to prevent the harm from occurring and in the aftermath of an "incident")? [...]
[...] In the context of the risk management function, identification and management of Risk is more prominent for the financial services sector and less so for consumer products industry. What are the primary objectives of your risk management function? When specifically asked in a survey conducted of respondents stated that their risk management function is indeed expressly mandated to optimize risk. Risks in Banking Risks manifest themselves in many ways and the risks in banking are a result of many diverse activities, executed from many locations and by numerous people. [...]
[...] Altman and Saunders (1998) provide a detailed survey of credit risk management approaches. They compare four methodologies for credit scoring: 1. The linear probability model 2. The logit model 3. The probit model 4. The discriminant analysis model The logit model assumes that the default probability is logistically distributed, and applies a few accounting variables to predict the default probability. The linear probability model is based on a linear regression model, and makes use of a number of accounting variables to try to predict the probability of default. [...]