Prelim- Risk Mangement


Q1. Solve any 2 (15 marks)

  1. Explain the risk management process
  2. Explain the diversification and investment process for risk avoidance
  3. Based on the following information, calculated the weighted beta and using the CAPM model advise on the strategy per company
Company No if shares Beta MPS Expected return
A 50000 1.2 12 19%
B 10000 1.4 20 20%
C 5000 0.9 55 18%
D 20000 1.3 22 12%


Q2. Solve any 2(15 marks)

  1.  An Indian company imports in dollars and the payment is due in 3 months. The invoice amount is $13750 and today’s spot rate is 1INR= 0.0275$ which is equivalent to Rs 5 lakhs. It may happen that the exchange rate may decline by 5% over 3 months. A 3 month forward contact is available for 0.0273$. How can you reduce the forex risk in this case.
  2. Explain the Markowitz and Arbitrage theory of risk mitigation
  3. Explain the ERM Matrix

Q 3. Solve any 2( 15 marks)

  1. Explain the 3 line of defence model
  2. What is Assurance and why is it needed
  3. Who are the various stakeholders and how do they assure that risk are mitigated.

Q4. Solve any 2( 15 marks)

  1. Elaborate the role on actuary in the risk management for insurance
  2. Concepts:- Reinsurance, Bankassurance, Alternative Risk Transfer
  3. Explain the general insurance claim management process

Q5. A. A table depicting various types of insured and their age along with sum assured and their class category is given. Calculate the tentative expected claim cost (5 marks)

Gender Age Sum Insured Base rate Risk class(%)
Male 45 100000 2.5 125%
Male 50 200000 2.75 150%
Male 58 300000 1.56 200%
Female 60 150000 3.01 100%
Male 35 150000 1.4 100%





B Expected loss are as follows (5 marks)

Loss values (Rs)                    Probability

100000                                  0.02

20000                                    0.08

Find fair premium if policy provides full coverage, underwrtting cost is 30% of pure premium, claim are paid at the end of the year, interest rate is 9%, processing cost is Rs 750/- and fair profit is 10% of pure premium

c. Explain the various ways to hedge FOREX exposures. (5 marks)

The following two tabs change content below.
Education Qualification: BMS- N M College (University Rank Holder) PGDBM- Sydenham College M Com- College topper Mr Vipin Saboo has been associated with the following institutes as a visiting faculty Lords college, Malad Patkar College, Goregoan Saraf college, Malad Dalmia college, Malad St Andrews College, Bandra Wilson College, Grant Road Thakur college, Kandivili L N College, Kandivili N K College, Malad Dhanukar College, Vile Parle St Xaviers College, Marine Lines Shroff College, Kandivili KES College, Khar Mr.Vipin Saboo also has more than 5 years of industry expertise with corporate like CRISIL, Motilal Oswal Investment Banking and Yes Bank. Mr. Saboo has also published a text book on Logistics and Supply Chain Management for TYBMS Students.
  1. Rajat 3 years ago

    Hi BMS

  2. Janita Raikar 3 years ago

    hello sir, please mention the values for current market return and Risk free rate for below metioned sum of prelim paper
    Q1 /3 )Based on the following information, calculated the weighted beta and using the CAPM model advise on the strategy per company
    Company No if shares Beta MPS Expected return
    A 50000 1.2 12 19%
    B 10000 1.4 20 20%
    C 5000 0.9 55 18%
    D 20000 1.3 22 12%

  3. Geetanjali 3 years ago

    What is the solution for expected claim cost plz provide fast

  4. SEOgine New York SEO 3 months ago

    … [Trackback]

    […] Read More here on that Topic: […]

  5. travesti 3 months ago

    … [Trackback]

    […] Here you will find 24782 more Information to that Topic: […]

  6. … [Trackback]

    […] There you can find 9883 more Information on that Topic: […]

  7. … [Trackback]

    […] Read More on that Topic: […]

  8. 카지노 2 months ago

    … [Trackback]

    […] Read More here on that Topic: […]

  9. Trackback

    Interesting post

  10. oqazqok 2 months ago

    I frightened of you nab Tentex Speaking does generic viagra fit in <a href="[Link deleted]visa then you be subjected to ungual organic to the gap rider

  11. … [Trackback]

    […] Information to that Topic: […]

  12. Gopwjw xiaqrb <a href="[Link deleted]order cialis on line

  13. price of cialis 1 month ago

    Uwcrza ulkajr <a href="[Link deleted]viagra professional cialis prices

  14. buy cialis canada 1 month ago

    Amekxh mktrrg <a href="[Link deleted]my term paper for me when does cialis go generic

  15. online cialis 1 month ago

    Ptdjmg avbejg <a href="[Link deleted]essay writing services cialis coupon

  16. Ipvshb zfzxbx <a href="[Link deleted]cialis online cialis 20 mg

  17. cialis generic 1 month ago

    Yncmjd cumkzs <a href="[Link deleted]price for cialis best place to buy cialis online

  18. Hxxlsm axxrja <a href="[Link deleted]online without prescription how much is cialis

  19. cialis generic 1 month ago

    Jfoqrl uhxzpj <a href="[Link deleted]branded cialis cialis 20mg

  20. Pharmacy viagra 4 weeks ago

    Hkhfaf xnsipp <a href="[Link deleted]generic silandifil Buy no rx viagra

  21. Wyjvnw tbhrwu <a href="[Link deleted]viagra pills online Order viagra us

  22. Viagra medication 3 weeks ago

    Fmixmy hvciif <a href="[Link deleted]viagra Canadian pharmacy viagra

  23. Canada viagra 3 weeks ago

    Ayzlbw jzhjfy <a href="[Link deleted]viagra professional Buy viagra no prescription required

  24. Buy viagra now 3 weeks ago

    Xftklu txqpmc <a href="[Link deleted]discount viagra Alternative for viagra

  25. Pdjbte yijwsz <a href="[Link deleted]viagra no rx Canada viagra

  26. Lcxttv mfjsbi <a href="[Link deleted]approved Order viagra online

  27. Pfizer viagra 3 weeks ago

    Bkvpdz lsyybz <a href="[Link deleted]ed medication Order viagra usa

  28. EstherKef 3 weeks ago

    Dgcgqo pzhkgh <a href="[Link deleted]sildenafil Buy real viagra online without prescription

  29. EstherKef 2 weeks ago

    Dosaat xpvzzq <a href="[Link deleted]online viagra Buy generic viagra online

  30. data pengeluaran hk 2 weeks ago

    … [Trackback]

    […] Read More on to that Topic: […]

  31. ed drugs 1 week ago

    Idmizr sigfwg <a href="[Link deleted]ed pills erection pills online

  32. Gnvqvo udyeni <a href="[Link deleted]ed medications erection pills

  33. Lbzziz jrppqr <a href="[Link deleted]ed pills mens ed pills

  34. Bvibwr znlrgw <a href="[Link deleted]dysfunction pills best ed pills online

  35. male erection pills 2 days ago

    Uyydpq nhvtyn <a href="[Link deleted]online pharmacy otc ed pills

  36. online ed pills 2 days ago

    Rgwmsl asgziu <a href="[Link deleted]cialis best ed pills non prescription

  37. EstherKef 2 hours ago

    Aephem remqwp <a href="[Link deleted]viagra online Real viagra

Leave a reply

Your email address will not be published. Required fields are marked *


* is aimed at revolutionising Bachelors in Management Studies education, also known as BMS for students appearing for BMS exams across all states of India. We provide free study material, 100s of tutorials with worked examples, past papers, tips, tricks for BMS exams, we are creating a digital learning library.

Disclaimer: We are not affiliated with any university or government body in anyway.

©2020 BMS - Bachelor of Management Studies Community 

A Management Paradise Venture

Ask Us On WhatsApp

Log in with your credentials


Forgot your details?


Create Account