A PROJECTSYNOPSIS ON RISK

M ANAGEMENT

AT RELIANCE NIPPONLIFE INSURANCE

SUBMITTED BY
K.PUSHPA KUMARI
212117672030
ARISTOTLE PGCOLLEGE

UNDER THE GUIDANCE OF

DR.SUKANYAMETTA
 INTRODUCTION OFRISK MANAGEMENT

Risk management is an important part of planning for business.The process of

risk management is designed to reduce or eliminate the risk of certain kinds of
events happening or having an impact on the business.
DEFINITIONOF RISK MANAGEMENT

Risk management is a process for identifying, assessing, and prioritizing risks of

different kinds. Once the risks are identified, the risk manager will create a plan
to minimize or eliminate the impact of negative events. A variety of strategies is
available, depending on the type of risk and the type of business. There are a
number of risk management standards, including those developed by the Project
Management Institute, the International Organization for Standardization (ISO),
the National Institute of Science and Technology, and actuarial societies
TYPES OF RISK

There are two different types of risks are systematic risk and unsystematic risk.In
systematic risk which is divided into three risks are interest rate risk, market risk
and purchasing power risk.In unsystematic risk have three different risk are
business risk, financial risk and operational risk.risk can also relate to business
practices, uncertainty in financial markets, failures in projects, credit risks, or the
security and storage of data and records.
GOALS OF RISKMANAGEMENT

• The idea behind using risk management practices is to protect businesses from
being vulnerable.
• Many business risk management plans may focus on keeping the company
viable and reducing financial risks. However, risk management is also
designed to protect the employees, customers, and general public from
negative events like fires or acts of terrorism that may affect them.
• Risk management practices are also about preserving the physical facilities,
data, records, and physical assets a company owns or uses.
REVIEW OFLITERATURE
• Antoniou and Foster (2002) in his research work on “The effect of futures
trading on spot price volatility: evidence for Brent crude oil using GARCH”
analysed the effect of futures trading on spot price volatility for Brent crude oil
in UK. Using GARCH method, study indicates that there was no
unpredictability in spillover from futures to spot market.
• Peroni and McNown (2003) noted that the conclusion proposed by Moosa
and Al-Loughani may be unwarranted, as a result of the shortcomings of the
test statistics employed. Aulton, Ennew, and Rayner found that the market is
not efficient for pigment and potatoes.
• Chowdhury (2005) pointed out the problems of hypothesis testing in the futures market
literature and suggested how the co-integration approach can be used to circumvent
some of these difficulties. Moosa and Al-Loughani (2006) rejected futures market
speculative efficiency for the West Texas Intermediate (WTI) contracts for the
period. The same hypothesis was rejected for the copper futures contract traded on the
LME by Beck (2006).
• Moore and Callen (2007) in their work on “Speculative Efficiency on the London
Metal Exchange” examined the Speculative Efficiency of the LME for six base metals
. The study indicated that the long-run speculative efficiency cannot be rejected for
the copper and other three metals.
• Moraes et. al (2009) investigated the market efficiency hypothesis in the
Brazilian live cattle futures market using co integration techniques. With a
daily sample data of spot and futures prices throughout the period of
September 2000 to June 2004, they found that the live cattle futures prices
have one unit root and are co integrated. Using ECM to assess the efficiency
hypothesis, they arrived on a conclusion that the Brazilian live cattle futures
market is an efficient market.
• Jain and Goyal (2012) noted that the insurance industry is in existencesince
long, the level of awareness towards the rights and duties regarding
insurance are negligible. The study tries to understand the awareness of the
people towards the rights and duties towards life insurance products after
the privatization of the insurance sector.
Choudhuri (2014) analysed that the customers are very much conscious about their
needs and requirements towards insurance. Based on the several factors, customers
are now selecting different kinds of products in their life where their awareness
.
about the several existing life insurance products varies situation wise, culture wise,
nation wise, sector wise, industry wise and obviously over times.

Srivastava (2016) stated that Insurance industry contributes to

thefinancial sector of an economy and also provides an important social
security net in developing countries. The growth of the insurance sector in
India has been phenomenal. The insurance industry has undergone a
massive change over the last few years and the metamorphosis has been
noteworthy.
 RESEARCH METHODOLOGY

NEEDS FOR THE STUDY

• Investment helps investors in effective and efficient management of their
investment to achieve this goal.
The purpose of risk management is to help leaders select and then execute
successful strategies to deliver optimal value.
• The rapid growth of capital markets in India has opened up new investment
avenues for investors.
• The stock markets have become attractive investment options for the common
man. But the need is to be able to effectively and efficiently manage
investments in order to keep maximum returns with minimum risk.
SCOPE OF THESTUDY

• This study covers the Markowitz model. The study covers the calculation of
correlations between the different securities in order to find out at what
percentage funds should be invested among the companies in the portfolio.
Also the study includes the calculation of individual Standard Deviation of
securities . These percentages help in allocating the funds available for
investment based on risky portfolios.
OBJECTIVES OF THESTUDY

• To study the investment decision process in Insurance.

• To analyse the risk return characteristics of sample scripts.
• Ascertain Risk Management.
• To construct an effective portfolio which offers the maximum return with
minimum risk
• To study the risk management decision process & the risk return characteristics
of Investment.
DATA COLLECTION
• Primary data
The primary data are those information which should be collected afresh and
for the first time and thus happen to be original in character.
• Secondary Data
The secondary data are those which have to be collected by some other
agency and which have already been processed. The sources of secondary data
are annual reports, browsing internet through magazines.

TOOLS FOR DATA ANALYSIS

• Variance
• Standard deviation
LIMITATIONOF THE STUDY

• Due to time constraint sufficient research on all the investment tools is difficult.
• Share prices of scripts of 5 years period was taken.
• The period of the project is for 45 days and is not sufficient.
COMPANY PROFILE
RELIANCE NIPPON LIFE INSURANCE COMPANY
(RNLIC)

Reliance Nippon Life Insurance Company is amongst the leading private sector
life insurance companies in India in terms of individual WRP (weighted received
premium) and new business WRP. The company is one of the largest non-bank
supported private life insurers with over 10 million policyholders, a strong
distribution network of over 700 branches and more than 75,000 advisors as on
March 31, 2018. The company holds Claim Settlement Ratio of 95.17% as on
March 31, 2018.
Rated amongst the Top 3 Most Trusted Life Insurance Service Brands by Brand
Equity‘s Most Trusted Brands Survey 2018, the company’s vision is “To be a
company people are proud of, trust in and grow with; providing financial
independence to every life we touch.” With this in mind, Reliance Nippon Life
caters to five distinct segments, namely Protection, Child, Retirement, Saving &
Investment, and Health; for individuals as well as Groups/Corporate entities.
Reliance Nippon Life Insurance Company is a part of Reliance Capital, one of
India's leading private sector financial services companies, which ranks among
the top private sector financial services and non-banking companies, in terms of
net worth. Reliance Capital has interests in asset management and mutual funds,
stock broking, life & general insurance, proprietary investments, private equity
and other activities in financial services.
VISION
• “To be a Company people are proud of, trust in and grow with; providing
financial independence to every life we touch“
Planning people's future and standing by them in their hour of need goes beyond
business, it takes a selfless intent of thinking well for others. Our advisors enjoy
high credibility and stature in society, having helped not only shape future of
families, but also recuperate in tough times. 'Do Good' is our intent, our
philosophy and belief that we aim to bring alive through every life we touch.
FOUNDER OF RELIANCE LIFE INSURANCE

DHIRUBHAI HIRACHAND AMBANI was an Indian

business tycoon who founded reliance industries in
Bombay with the help of trusted advisor,harsh
makhija.Abmani took reliance industries public in
1997 and by2002.
CEO AND DIRECTOR OF RELIANCE LIFE INSURANCE

ASHISH VOHRA is the CEO of the reliance Nippon life

insurance-one of the India’s leading,non bank
promoted,private sector life insurance.HE joined
reliance Nippon life insurance from max life
insurance where he spent 8 years and served as
senior director responsible for building balanced
multi channel distribution across the nation.
CHAPTERIZATION
CHAPTER -1 – INTRODUCTION
In this first chapter will provide introduction of the topic.
CHAPTER – 2 REVIEW OF LITERATURE
This chapter includes different article written by different authors and brief
explanation of the topic.
CHAPTER– 3 RESEARCH METHODOLOGY
In this chapter will provide Need, Scope, Objectives, Data Collection Sources,
Tools for analysis and Limitations of the study.
CHAPTER – 4 – INDUSTRY PROFILE & COMPANY PROFILE
This chapter will give an overview of the industry trends, strategies and
Explain the history of the company, board of directors, awards etc.
CHAPTER - 5 - DATA ANALYSIS AND INTERPRETATION
CHAPTER - 6 - FINDINGS
CHAPTER – 7 - SUGGESTIONS, CONCLUSION, BIBLIOGRAPHY