FIN 250: Fundamentals of Corporate Finance
Nature of the Course: Concentration Lecture Hours: 150
Full Marks: Pass Marks:
Course O!ecti"e
The objective of this course is to provide students an understanding of the basic concepts and theories of corporate finance and develop skills to analyze issues in corporate finance for sound financing decisions in businesses. Course #escription This course familiarizes students the fundamentals of corporate finance and provides them required skills skills to analyz analyzee and manage manage financ financing ing aspect aspectss of busine business ss decisi decisions ons.. This This course course deals deals ith ith introduction introduction to corporate corporate finance! finance! financial financial markets markets and institution institutions! s! interest interest rates! short"term financing! common stock and investment banking process! long"term debt and preferred stock financing! capital structure and leverage! financial planning and forecasting! derivatives and risk management! multinational corporation and merger and acquisition. Course #etails $nit %: Introduction to Corporate Finance
LH %0
Corporate finance and financial manager# $inancial manager%s responsibilities# &anagerial actions to ma'imize shareholder ealth# Corporate finance and other functional areas# The agency agency problem problem(( stockh stockhold olders ers versus versus manage managers rs and stockh stockhold olders ers versus versus credito creditors# rs# Corporate social responsibilities# and Corporate governance. $nit 2: Financial Markets and Institutions
LH 5
The capital allocation process# $inancial markets# Types of financial markets# $inancial institutions# The stock market# )tock market and returns# and )tock market efficiency. $nit &: Interest 'ate
LH %0
The cost cost of money# money# *ntere *nterest st rates rates levels levels## +eterm +eterminan inants ts of market market intere interest st rates# rates# Term erm structure of interest rates# )hape of yield curve# ,sing the yield curve to estimate future interest interest rates# &acro"econom &acro"economic ic factors factors influencing influencing interest rates# and *nterest rate and business decision. $nit (: )hort*+erm Financin, Financi n,
LH 20
-ature of short"term financing# dvantages and disadvantages# )ources of short"term financing( accruals! accounts payable /trade credit! commercial paper! short"term bank loans line of credit! revolving credit arrangement! transaction loans# The cost of bank loan# Choosing a bank# Comparison of cost of trade credit! commercial paper and short" term bank loan# ,se of security in short"term financing( inventory financing and accounts receivable financing. $nit 5: Common )tock and In"estment -ankin, Process
LH %5
$eat $eatur ures es of comm common on stock stock## 2ega 2egall righ rights ts and and priv privile ilege gess of comm common on stock stockho hold lder ers# s# dvant dvantage agess and disadva disadvanta ntages ges## The The market market for commo common n stock# stock# ðod ðodss of sellin selling g securities( public offering! rights offering and private placement# nalysis of rights offering and effect of rights offering on shareholders% ealth# and The investment banking process.
$nit .: Lon,*+erm #et and Preferred )tock Financin,
LH %0
+ebt instruments( term loan and bonds# +ebt contract features# 2oan repayment schedules# Types of bonds# 3ond innovations# dvantages and disadvantages# 4referred stock( features! types! advantages and disadvantages. $nit /: Capital )tructure and Le"era,e
LH %0
Capital structure and financial structure# +etermining the optimal capital structure( 3*T64) analysis of the effect of financial leverage! 4) indifference analysis# The effect of capital structure on stock prices and the cost of capital# Capital structure and value of the firm# 7perating leverage! financial leverage and total leverage. $nit : Financial Plannin, and Forecastin,
LH %5
)trategic planning# 7perating plans and the financial plan# )ales forecast# The dditional $und -eeded /$- quation# $orecasted financial statements# ,sing regression to improve forecasts# and nalyzing the effects of changes in ratios. $nit 1: #eri"ati"es and 'isk Mana,ement
LH %5
8easons for managing risk# *ntroduction to derivatives! 7ptions( 7ption types and markets# $actors affecting the value of a call option# 'ercise value versus option price# $orard and futures contracts# 7ther types of derivatives( saps! structured notes! inverse floaters# ,sing derivatives to reduce risk# 8isk management and risk management approaches. $nit %0: Multinational Corporate Finance
LH 20
-ature of multinational corporations# 8easons for companies going global# &ultinational versus domestic financial management# 'change rates quotations# Cross rates# *nterbank foreign currency quotations# Trading in foreign e'change rates( spot rates and forard rates# *nterest rate parity# 4urchasing poer parity# *nflation! interest rates! and e'change rates# *nternational money and capital markets# *nternational capital budgeting# and *nternational capital structure. $nit %%: Mer,er and c3uisition
LH %0
8ationale for mergers# Types of mergers# 2evel of merger activity# 9ostile versus friendly takeovers# &erger analysis# 8ole of investment bankers# Corporate alliances# and 4rivate equity investments. Pro!ect 4ork
LH %0
fter the completion of fourth year concentration classes the students shall have to prepare and submit a project ork in the area they have specialized. The subject teachers have to discuss ith students on possible topics of the project ork! availability and sources of literature! availability of data! data collection methods! appropriate tools of data analysis! etc relevant to the subject ithin 10 lecture hours. Basic Text
3righam! . $.! : 9ouston! ;. $. Fundamentals of financial management 2earning.
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FIN 25%: Commercial -ank Mana,ement Nature of the Course: Concentration Lecture Hours: 150
Full Marks: Pass Marks:
Course O!ecti"e This course aims to provide students ith basic understandings of ho commercial banks provide their services and equip them ith the tools and techniques required for commercial bank management. 3y the end of this course! the student ill be able to understand regulatory environment! evaluate performance! analyze assetAliability position of banks! make correct investment decisions! provide various types of lending! manage capital and liquidity position and analyze the impact of off balance activities of commercial banks.
Course #escription This course deals ith one of the most important financial institutions commercial banks. This course introduces students ith the commercial bank and the regulatory environment in hich it operates. Then it evaluates the performances of banks and discusses ho the assets and liabilities of the banks are managed. *t describes ho these banks maintain their liquidity! manage the capital and offer different types of loan to their clients. $inally! it also covers the off"balance sheet items and electronic banking.
Course #etails $nit %: Introduction to Commercial -ankin, LH 5 &eaning! types and functions of a bank# 3ank goals and constraints# *nternal organization of banking firms# )izes and market shares of commercial banks# ssets and liabilities of commercial banks# and Current status of commercial banks in -epal. $nit 2( +he -ank 'e,ulator6 7n"ironment LH %0 8easons for bank regulations# volution of regulatory frameork# )alient $eatures of 3anking and $inancial *nstitutions ct# $unctions and poer of bank regulator# and The 8ole of -epal 8astra 3ank in the regulation of banks in -epal.
$nit &: 7"aluatin, -ank Performance LH %0 $rameork for evaluating bank performance( internal performance! e'ternal performance# 3ank financial statement( the balance sheet! the income statement# nalyzing bank performance ith financial ratios( profit ratios! risk ratios! other ratios# 8isk"adjusted return on capital# and conomic value added. $nit (: sset8Liailit6 Mana,ement LH %5 Concept of assetAliability management# pproaches in managing interest rate risk( balance sheet adjustment! off"balance sheet adjustment# &easuring interest rate sensitivity and dollar gap( classification of assets and liabilities! definition of dollar gap! asset and liability sensitivity gap! interest rates and profitability! incremental and cumulative gap! gap analysis! managing interest rate risk ith dollar gap! balance sheet adjustment! acceptable level of interest rate risk! aggressive vs defensive management of interest rate risk using dollar gap! problem of dollar gap management# +uration gap analysis( measurement of duration gap! interest rates! the duration gap and the value of equity! defensive and aggressive duration gap management! problem ith duration gap management# and )imulation and stress testing in assetAliabilit y management.
$nit 5: In"estment Mana,ement LH %0 *nvestment policies and goals# Types of investment securities# valuating investment risk( security specific risk! portfolio risk! inflation risk# and *nvestment strategies( passive investment strategies! aggressive investment strategies.
$nit .: Credit 7"aluation Process LH %0 Credit scoring# Credit rating# financial analysis# 8atio analysis( profitability ratios! liquidity ratios and measures! efficiency ratios! leverage ratios# and Common size statement analysis. $nit /: Commercial and Industrial Lendin, LH %5 The role of asymmetric information in lending# 2ending environment# 2oan policy#
$nit : 'eal 7state and Consumer Lendin, LH %0 8eal estate lending# Characteristics of mortgage loan# 8esidential mortgage loan# Commercial real estate loan# Consumer lending# Types of consumer loans# and $inancial charges. $nit 1: Li3uidit6 Mana,ement LH %5 stimating liquidity needs( sources and uses of funds method! structure"of"deposits method# ssets liquidity( role of asset liquidity! primary reserves! managing the money position! secondary reserves# 2iability management# $und management of liquidity( liquidity ratios! optimal bank liquidity# 8egulatory vie of bank liquidity# and -epal 8astra 3ank directives on liquidity management. $nit %0: Capital Mana,ement LH %0 +efinition of bank capital# 8ole of bank capital# Capital adequacy# )hareholders% vie on bank capitalization# Trends in bank capital# and -epal 8astra 3ank +irectives on bank capital.
$nit %%: Liailities Mana,ement LH %0 )tructures of bank liabilities# +eposit sources of fund# -on deposit sources of funds# 3alance sheet structure of bank liabilities# &anaging bank liabilities# $ormulating pricing policies# stimating cost of bank funds# and Cost analysis.
$nit %2: Off*-alance )heet cti"ities LH %0 $inancial guarantees# )tandby letter of credit# 3ank loan commitments# +erivatives# and 7ther off"balance sheet activities.
$nit %&: 7lectronic -ankin, LH %0 8etail payments and financial services# lectronic banking services( retail services! holesale services# and lectronic banking( internet banking.
Pro!ect 4ork LH %0 fter the completion of fourth year concentration classes the students shall have to prepare and submit a project ork in the area they have specialized. The subject teachers have to discuss ith students on possible topics of the project ork! availability and sources of literature! availability of data! data collection methods! appropriate tools of data analysis! etc relevant to the subject ithin 10 lecture hours.
-asic +e9t ?up! 3. .! : @olari! ;. <. Commercial banking -e +elhi(
FIN 252: Foundations of Financial Markets and Institutions Nature of the Course: Concentration Lecture Hours: 150
Full Marks: Pass Marks:
Course O!ecti"e The course aims to lay the foundation of students on financial institutions and markets by imparting the fundamentals concepts and theories of financial markets and institutions. 3y the end of this course! the student ill understand the functioning of financial institutions such as depository and non"depository financial institutions! the role of the central bank! and the markets for government and corporate securities. Course #escription $inancial institutions and markets are important components of market economy. )tudents studying finance courses must be familiar ith the purpose and functions of the financial institutions and the markets. Therefore! this course deals ith fundamental aspects of financial institutions and markets as they operate in an economy. This course covers the fundamentals concepts and theories of financial markets and assets! depository and non"depository financial institutions! central banking and monetary policy! assets price and interest rates! organization and structure of markets! government securities markets! markets for corporate securities! mortgage and assets backed securities! and risk in financial institutions.
Course #etails $nit %: Introduction
LH %0
7vervie of financial assets( concept of financial assets! debt versus equit y instruments! the price of financial assets and risk! financial assets versus tangible assets! the role of financial assets# $inancial markets( concepts and role of financial markets! classification of financial markets! market participants! globalization of financial markets! classification of global financial markets! motivation for foreign market and uromarkets# The role of the government in financial markets( justification for regulation! forms of regulation# and $inancial innovation( categorization of financial innovations! and motivation for financial innovation. $nit 2: Financial Institutions Financial Intermediaries and sset Mana,ement Firms
LH /
$inancial institutions( services provided by financial institutions# 8ole of financial intermediaries# 7vervie of assetAliability management for financial institutions# Concerns of regulators# sset management firms# and 9edge funds. $nit &: #epositor6 Institutions LH ssetAliability problems of depository institutions# Commercial banks services! bank funding! capital requirement for banks# )avings and loan associationsBassets! funding! and regulation# )avings banks# Credit unions# and Classification of depository institutions in -epal. $nit (: +he Central -ank and Monetar6 Polic6
LH %0
The central bank and its purposes# *nstruments of monetary policy# +ifferent kinds of money# &oney and monetary aggregate# The money multiplierBthe e'pansion of the money supply# The impact of interest on money supply# and The money supply process in an open economy# &onetary policy( concept and goals of monetary policy! trade"offs and conflicts among policies! goals and types of targets! and -epal 8astra 3ank and monetary policy of -epal.
$nit 5: Insurance Companies LH %5 &eaning# Types of insurance# *nsurance company versus types of products# $undamentals of the insurance industry# 8egulation of insurance industry# )tructure of insurance companies# $orms of insurance companiesBstock and mutual# *ndividual versus group insurance# Types of life insurance# ?eneral account and separate account products# 4articipating policies# *nsurance company investment strategies# Changes in insurance industry# volutions of insurance! investment and retirement products# *nsurance industry in -epal# and 8egulation and supervision mechanism in -epal. $nit .: In"estment Companies and Pension Funds LH %5 Types of investment companiesBopen"end funds! closed"end funds# unit t rusts# $unds sales charges and annual operating e'penses# &ultiple shares classes# conomic motivation for funds# Types of funds by investment objectives# The concept of family of funds# *nvestment vehicles for mutual funds# &utual fund costs# Ta'ation of mutual funds# 8egulation of funds# )tructures of a funds# 8ecent changes in mutual funds# lternatives to mutual funds Be'change traded funds# &utual funds versus e'change traded funds# *nvestment companies in -epal# Concept of pension funds# Types of pension plansBdefined"benefit plan! defined"contribution plan! and hybrid pensions plans# and 4ractices of pension plan in -epal. $nit /: #eterminants of sset Prices and Interest 'ates LH %5 4roperties of financial assets# 4rinciples of pricing of financial assets# 4rice volatility of financial assets# The theories of interest ratesB$ishers classical theory! the loanable funds theory! and the liquidity preference theory# The determinants of the structure of interest rates# The yield curve and the term structure# $orard rates# and +eterminants of the shape of the term structure. $nit : Or,ani;ation and )tructure of Markets LH %0 4rimary markets( the traditional process for issuing ne securities! regulation of the primary market! variation in the understanding of process! and private placement of securities# )econdary markets( functions of secondary markets# 4erfect markets# 8oles of brokers and dealers in real market# &arket efficiency# lectronic trading# and 4rimary and secondary markets in -epal. $nit 1: Market for
LH %0
Trading mechanics# Transaction costs# Trading arrangement for retail and institutional investors# 3asic functioning of stock markets# )tock market indicators# 4ricing efficiency of the stock markets# 'change market structures# )tock market and over"the"counter markets# 7ff"e'change markets# and Common stock market in -epal. $nit %%: Market for Corporate )enior )ecurities
LH %0
Concept of corporate senior securities# Credit risk# Commercial paperBconcept! issuers of commercial paper# &edium term notes# 3anks loans# Corporate bonds( overvie of concept and features! bonds ith special features! corporate bond credit rating# urobond market# 4referred stock( features! adjustable"rate preferred stock# -egotiable C+s# and 3ankers acceptance.
$nit %2: +he Mort,a,e and sset*acked )ecurities Markets LH %0 Concept of mortgage and mortgage markets# &ortgage origination# Types of mortgage# *nvestment risks# Concept of mortgage"backed securities# gency pass"through securities# Collateralized mortgage obligations# ccrual bonds# )tripped mortgage"backed securities# sset"backed securities markets( concept of asset"backed securities and securities markets! creation of an asset backed security! collateral types and securitization structure! non" mortgage types of 3)! credit risks associated ith investing in 3)! securitization and the impact on financial markets. $nit %&: 'isks of Financial Institutions LH %0 Concept of risk# Types of risk( interest rate risk! market risk! credit risk! off"balance"sheet risk! foreign e'change risk! sovereign risk! technology and operational risks! liquidity risk! insolvency risk and other risks. Pro!ect 4ork LH %0 fter the completion of fourth year concentration classes the students shall have to prepare and submit a project ork in the area they have specialized. The subject teachers have to discuss ith students on possible topics of the project ork! availability and sources of literature! availability of data! data collection methods! appropriate tools of data analysis! etc relevant to the subject ithin 10 lecture hours.
-asic te9ts
$abozzi! $. ;.! &odigliani! $.! ;ones! $. ;.! : $erri! &. Foundations of financial markets and institutions. +elhi( +orling @indersley /*ndia 4vt. 2td. )aunders! . : Cornett! &. &. Financial markets and institutions. -e =ork( &c?ra 9ill *rin.
'eferences &eir! @. Financial institutions and markets. +elhi( 7'ford ,niversity 4ress *ndia. &adura! ;. Financial institutions and markets +elhi( Cengage 2earning *ndia 4rivate 2imited. @lob! 8. : 8odriguez! 8. ;. Financial institutions and markets Cambridge( 3lackell 4ublishers *nc. )hrestha! &. @. ! 3handari! +. 3. : ;oshi! 4. 8. Foundation of Financial "nstitutions # $arkets . @athmandu( smita 3ooks 4ublishers : +istributors /4 2td. 3hattarai! ;.! : ?himire! ). 8. Financial markets and institutions. @athmandu( @. 4. 4ustak 3handar. 3hole! 2. &. : &ahakud! ;. Financial institutions and markets. +elhi( Tata &c?ra 9ill ducation 4vt. 2td.
FIN 25&: Fundamentals of In"estment Nature of the Course: Concentration Lecture Hours: 150
Full Marks: Pass Marks:
Course O!ecti"e The objective of this course is to provide students ith basic understanding of fundamental concepts and principles of investing and equip them ith the tools and techniques for analyzing individual securities and portfolios. 3y the end of this course! the student ill be familiar ith the investment environment and be able to analyze securities and make correct investment decisions from the vie point of individual investors. Course #escription This course deals ith investment environment! principles and process of investing in securities. *t also provides students opportunities to learn techniques of analyzing securities and forming portfolios. The topics covered in this course are( investment environment! securities markets and transactions! risk and return! modern portfolio! investment in common stocks! bonds! and mutual funds! and derivative securities.
Course #etails $nit %: In"estment 7n"ironment LH %0 &eaning and types of investment# Types of investors# *nvestment process# *nvestment vehicles# &aking investment plan( steps in investing! considering personal ta'es! investing over the life cycle! investing in different economic environment# &eeting liquidity needs( investing in short"term vehicles# *nvestment environment in -epal# and thics in investing.
$nit 2( Markets and +ransactions LH %5 &eaning of securities markets# Types of securities markets( primary market and secondary market! broker and dealer market! alternative trading system! general market conditions# ?lobalization of securities markets( importance! investing in foreign securities! risk in international investing# Trading hours and regulations of securities markets( trading hours! regulations# and Types of securities transactions( long purchase! margin trading and short" selling.
$nit &: In"estment Information and )ecurities +ransactions LH %5 *ntroduction to online investing# 4ros and cons of using internet as an investment tool# Types and sources of investment information( types of information! sources of information# &arket averages and inde'es( +o ;ones averages! ) : 4 inde'es! -epse inde'es# 3ond market indicators# &aking securities transactions the role of the stock brokers# Types of orders# 7nline transactions# Transaction costs# and *nvestor protection. $nit (: 'eturn and 'isk LH %0 The concept of return( components of return! importance of return! level of return! hist orical return! time value of money and return# &easuring return( real! risk"free and required returns! holding period return! the internal rate of return# $inding groth rates# The meaning of risk# )ources of risk# risk of a single asset( standard deviation! coefficient of variation# ssessing risk# and Combining risk and return. $nit 5: Modern Portfolio LH %5 Concept of portfolio# 4ortfolio objectives# 4ortfolio return and standard deviation# Correlation and diversification# *nternational diversification# The Capital ssets 4ricing &odel /C4&( components of risk! beta! estimating return using C4&! the )ecurity &arket 2ine# Traditional approach of portfolio management# &odern portfolio theory( the efficient frontier! portfolio beta! the risk return tradeoff# and 8econciling traditional approach and modern portfolio theory.
$nit .: Common )tock Fundamentals LH 4ros and cons of stock onership# 3uying and selling of common stocks( reading the quotes! transaction costs! common stock values# Types of stocks and stock dividends# and *nvestment strategies. $nit /: Common )tock nal6sis and =aluation LH %5 Concept of fundamental analysis and technical analysis# )ecurity analysis principles and approaches# conomic analysis( economic analysis and business cycle! key economic factors! developing an economic outlook# *ndustry analysis( key issues! industry groth cycle! developing an industry outlook# $inancial ratios liquidity ratios! activity ratios! leverage ratios! profitability ratios! 87"87 interaction! common stock ratios# The valuation process# )tock valuation models( the dividend valuation model! other approaches to valuation dividend"and"earnings approach! priceAearnings approaches# Concept of market efficiency and behavioral finance. $nit : Fi9ed Income )ecurities LH %0 &eaning and types of fi'ed income securities# $eatures of a bond# 3ond market performance# 3ond%s e'posure to risk# 3ond ratings# The market for debt securities( Treasury bonds! agency bonds! municipal bonds! corporate bonds# )pecialty issues( convertible securities! zero coupon bonds! mortgage"backed securities! assets"backed securities! junk bonds# ?lobal bond market# and -epalese bond market. $nit 1: -ond =aluation LH %2 The behavior of market interest rates# The term structure of interest rates and yield curve# The pricing of bonds# &easures of yield and return( current yield! yield to maturity! yield to call! e'pected return# +uration and immunization( the concept of duration measuring duration! bond duration and price volatility# ,ses of bond duration measures# and bond investment strategies. $nit %0: Mutual Fund LH %0 The mutual fund concept# dvantages and drabacks of mutual fund onership# 7rganization and functioning of mutual funds# 7pen"end and closed"end funds# 'change" traded funds# *mportant considerations in investing mutual funds# 7ther types of investment companies# Types of funds and services( types of funds! investors services# *nvesting in mutual funds# *nvesting in closed"end funds# &easuring performance# and &utual funds in -epal. $nit %%: Mana,in, Portfolios LH %0 Constructing a portfolio# valuating the performance of individual investments# and &easuring the performance of investment vehicles# ssessing portfolio performance# Comparison of return ith overall market measures( )harpe%s measure# Treynor%s measure! ;enson%s measure# 4ortfolio revision# and Timing transactions. $nit %2: #eri"ati"e )ecurities LH %0 3asic features of put and call options# dvantages and disadvantages of puts and calls# 7ption markets# )tock option provisions# 4ut and call transactions# 7ther types of options( stock"inde' option! option in e'change"traded funds! interest rate options! currency options# $uture market# &arket structure# Trading in future market# Trading commodities# and $inancial $utures. Pro!ect 4ork
LH %0
fter the completion of fourth year concentration classes the students shall have to prepare and submit a project ork in the area they have specialized. The subject teachers have to discuss ith students on possible topics of the project ork! availability and sources of literature! availability of data! data collection methods! appropriate tools of data analysis! etc relevant to the subject ithin 10 lecture hours.
-asic +e9t ?itman! 2. ;. : ;oehnk! &. + . Fundamentals of investing -e +elhi( +orling @indersley *ndia. 'eferences 3odie! D.! @ane! . : &arcus! . ;. Essentials of "nvestment. -e =ork( *rin &c?ra"9ill. le'ander! ?. ;.! )harpe! <. $. : ;effery >. 3. Fundamentals of "nvestments. +elhi( 4earson ducation. 8eilly! $. @. "nvestment analysis and portfolio management . )ingapore( )outh"
FIN 25(: Insurance and 'isk Mana,ement Nature of the Course: Concentration Lecture Hours: 150
Full Marks: Pass Marks:
Course O!ecti"es The objective of this course is to familiarize students ith the basic nature of risk and provide detail knoledge of insurance. The course also aims at providing necessary skills to analyze and shop appropriate life and non"life policies. Course #escription This course deals ith basic nature of risk and the ay it is managed by different types of insurance businesses. *n this course! students ill learn fundamental aspects of risk management along ith general principles of insurance. 3esides! they ill also have an opportunity to learn the principles and processes of effecting life! health! and property and liability insurances. )tudents ill also develop the necessary skills to evaluate and shop appropriate insurance policies. This course includes a total of 1E units! they are( *ntroduction to 8isk and *nsurance! 8isk management! 8isk *dentification and &easurement! $undamental 2egal 4rinciples and *nsurance Contract! 2ife *nsurance! 9ealth *nsurance! utomobile *nsurance! 9omeoners *nsurance! Commercial 4roperty *nsurance! Commercial 2iability *nsurance! )ocial *nsurance and ?overnment 8egulation of *nsurance. Course #etails $nit %: Introduction to 'isk and Insurance LH %0 &eaning of risk# 4eril and hazard# 3asic categories of risk# 3urden of risk on society# ðods of handling risk# +efinition of insurance# 3asic characteristics of insurance# 8equirements of insurable risk# Types of insurance# and 3enefits and costs of insurance to society. $nit 2: 'isk Mana,ement LH %0 &eaning of risk management# 7bjective of risk management# )teps in risk management process# 3enefits of risk management# 4ersonal risk management# The changing scope of risk management# $inancial analysis in risk management decision making# and 7ther risk management tools. $nit &: 'isk Identification and Measurement LH %0 8isk identification# Concept and use of probability in risk measurement# and valuating the frequency and severity of losses.
$nit (: Fundamental Le,al Principles and Insurance Contract LH %0 2egal principles# 8equirements of an insurance contract# +istinct legal characteristics of insurance contract# and 3asic elements of insurance contract. $nit 5: Life Insurance LH %5 &eaning and importance of life insurance# Types of life insurance# 2ife insurance contract# 4rocedure of life insurance contract# +etermining the premium of life insurance# 4rinciples of investment of life fund# +istribution channels for life insurance# ?roup life insurance( concept! group life underriting principles! group life insurance plans# and 2ife insurance in -epal( evolution! current status! and major policies. $nit .: Health Insurance LH %5 &eaning and importance of health care insurance# Types( individual and group# *ndividual health care insurance coverage# *ndividual medical e'pense contractual provisions# )hopping for individual health insurance# ?roup medical e'pense insurance and plans( traditional indemnity plan! anaged care plan! consumer"driven health plan# ?roup medical e'pense contractual provisions# ?roup"disability income insurance# and 9ealth insurance in -epal( current status and major challenges.
$nit /: uto Insurance LH %2 7vervie of automobile insurance# 2iability coverage# &edical payment coverage# ,ninsured and insured motorists coverage# uto insurance pricing and underriting( rating factors! underriting! residual markets# rguments for and against compulsory auto third party insurance# Tort liability and no"fault la# and utomobile insurance in -epal( current status! process of effecting automobile insurance and major issues. $nit : Homeo>ners Insurance LH / Types of policies# &ajor coverage# 4roperty loss settlement# 4ricing homeoners policies# 4ersonal umbrella policies# Coverage of high riskA catastrophic perils# and *mpact of catastrophes on property insurance.
$nit 1: Commercial Propert6 Insurance LH . Commercial package policy# *mportant forms( property coverage form! causes"of"loss form! reporting form# 3usiness income insurance# and Transportation insurance( ocean marine insurance and inland marine insurance. $nit %0: Commercial Liailit6 Insurance LH %5 ?eneral liability loss e'posure# Commercial general liability policy#
hill. 'eferences >aughan! . ;. : >aughan! T. &. Fundamentals of risk and insurance . -e +elhi(
