PROJECT RISK MANAGEMENT
SYLLABUS
UNIT I
Risk Management: Concept and objectives - Definition of risk and uncertainty - Classification of risk: Pure and
speculative risks - Cost of risk - Risk management process - Contributions of risk management to business, society
and family.
UNIT II
Risk Management in Business: Risk vis-à-vis size and types of business - Scope of risk manager's duties - Risk
management corporate policy and strategy.
UNIT III
Risk Identification and Measurement: Identification methods: Checklist, questionnaire, financial statement analysis,
flow-chart, on-site inspection, record of losses, threat analysis, event analysis, and safety audit - Measurement methods:
Frequency and severity measures - Probability approach.
UNIT IV
Risk Exposure Losses: Property loss exposures - Types - Net income loss exposures - Valuation of potential loss -
Decrease in income - Increase in expenses - Liability loss exposure: Civil liabilities of business houses: Form contracts,
omissions, commissions, bankruptcy, etc.
UNIT V
Risk Management Techniques: Avoidance - Loss control - Separation - Combination - Transfer - Risk Retention:
Concept and need - Methods of financing risk retention - Insurance - Reinsurance. Approaches to selecting risk
management tools: Quantitative approaches: Loss method - Expected loss method - Worry method - Critical probability
method - Risk adjusted capital Budgeting.