Finomenal 2017: Day 2: “Wealth Management and Investments” – Mr. Saurabh Sharma, Product Head-Liabilities, NRI & Payments, National Australia Bank

Saurabh-2

On 29th October 2017, the second day of Finomenal 2017, Mr Saurabh Sharma, gave a thoughtful lecture to the students of TAPMI on Wealth Management. He started the lecture by discussing various careers in wealth management. He discussed what is wealth management and who are the investors. He then explained why investors invest and how do they decide where to invest, few methods discussed were: deciding the risk profile of a client, defining asset class allocation, deciding product allocation etc.

He encouraged students to explore investing options. Mr Sharma quoted, “Taking the right call at the right time is important while investing”. He explained a couple of investment opportunities available in the market, few of which were Mutual funds, Direct equities, Portfolio management schemes, Bank deposits, Insurance, Bonds etc. He then listed out the skill sets required for wealth management few of them being, technical skills, ability to deal with pressure, interpersonal skills, empathy and discipline.

It was an interactive session and students found the session to be very knowledgeable and insightful. Mr Saurabh Sharma engaged into interactions with the students answering all queries related to wealth management and investment.

Advertisements

Finomenal 2017: Day 2: “Compliance and Risk Management in Banking”- Mr.Mitul Desai, Head – Compliance and Operational Risk, National Australian Bank

Mitul-3On 29th October 2017, Day 2 of Finomenal 2017, Mr. Mitual Desai delivered a guest lecture on “Compliance and Risk Management in Banking“ in our campus. He started off by giving a brief background of himself. He then gave an overview into the various business divisions in a Banking company such as Treasury, Retail Banking, Corporate Banking, Compliance and Risk Management, Trade Finance and so on.

A significant part of his lecture was on Risk Management in Banking and the various types of risk associated in Banking such as Credit risk, Market risk, Operational risk, Regulatory risk and Technology Risk. Risk Management teams are often referred to as “second line of defence” in a bank’s risk strategy – sitting between management(1st) and internal audit(3rd). He also spoke on the significance of compliance and risk management departments and how they have become an indispensable part of the banking sector. He used examples of top banks which are investing more to strengthen their compliance department.

Mr. Mitul Desai later dwelled on the different aspects of compliance departments and some key compliance regulations in India. He then offered career advice to students who are aspiring for a career in the compliance roles within banking. He elaborated on the different skill sets which are required for successful risk and compliance professionals. He also threw light on the various career paths in risk and compliance such as jobs in credit risk, market risk, operational risk, anti-money laundering (AML) etc.

Mr. Mitul Desai later did a SWOT Analysis of Foreign Banks in India and did a comparative analysis with their Indian counterparts bringing down the curtains on what has been a fascinating discourse on Compliance and Risk Management in Banking.

FINOMENAL 2017: Day 1: “Asset-Liability Management”- Mr. Anand Bagri, Head-Domestic Markets, RBL Bank Ltd

DSC_0058

On 28th October 2017, the inaugural day of Finomenal 2017, Mr. Anand Bagri, gave an insightful lecture to the students of TAPMI on Asset-Liability Management in banks. He started the lecture by showing how Financial markets can be sub-divided into the money market, debt market, forex market and debt capital market. He then went on to give students an idea about various aspects of banking and financial services.

Mr. Bagri quoted, “The objective of Asset Liability management is to effectively manage liquidity risks by maintaining adequate liquidity at all times”. He went on to talk about the nitty gritty of asset-liability management in banks giving a fair view of the sector to the students. He then explained how RBI manages the liquidity in the system through its monetary policies. He also explained the various monetary tools like repo rate, reverse repo rate, cash reserve ratio (CRR) and statutory liquidity ratio (SLR) and how each of these can impact the liquidity in the markets.

It was an interactive session and students found the session very knowledgeable and insightful. Mr. Anand Bagri invited questions from students and patiently answered all their queries giving them a fair view of banking and asset liability management.

COBCAM 2017 Inauguration Ceremony

The Inaugural Ceremony of COBCAM 2017 began with the ceremonial lighting of the lamp by the Director, Dr. Madhu Veera Raghavan, Admissions Chair, Professor Aditya Mohan Jadhav, BKFS Representative Mr. Dhanyakumar Malali and the Key Note Speaker of COBCAM 2017, Mr. Deepak Reddy, Group Head HR, Bajaj Finserv.

1U4A5995.JPG

Professor Aditya Mohan Jadhav emphasized the grounded industrial exposure the students of TAPMI get by the very structure of the curriculum. Dr. Madhu Veera Raghavan opened COBCAM 2017 by sharing his dream for TAPMI to be one of the top 10 Business Schools in India and for BKFS students to play an integral role in the financial services sector. He stressed on continuous revival and revamping of the curriculum to keep in constant touch with the changes in the industry.

The Key Speaker, Mr. Deepak Reddy refreshed on some of his fondest memories and biggest learnings as a TAPMI student. He urged the students to learn as much as possible in as many diverse sectors and fields. He noted the change in the perception of the consumers towards the banking industry and how that the most important factors that influence the success in the banking service sector are customer’s ease of obtaining information and customer fulfillment.

1U4A6023

He praised the change from the traditional banking practices to modern digitized methods which vastly reduced the processing speed. While this has greatly increased customer satisfaction, it has simultaneously reduced employment requirements; replacing man with machine. A case in point, he reminded the students that the financial sector is highly volatile with uncertainty around every turn.

On what he expects from students and future leaders, he demands that we find our purpose in life; a field where we can create an impact and lead change. He also stressed the importance of being socially aware and developing capabilities to collaborate with other individuals. He urged the students to work hard and learn continuously.

The insightful and informative speech set the tone for an evening of learning at COBCAM 2017.

Manthan 2017: Day 2: Guest Lecture 2: “How to analyse an investment idea- A true life example”- Mr.Ravi Sundaram, Senior Development Manager, iNautix Technoogies India Pvt Ltd.

IMG_9346

Mr. Ravi S. started the discussion by quoting “Don’t invest for the sake of making money, but to gain an understanding of the market.” By taking the example of the pharmaceutical sector he is closely associated to, he explained concentrated vs. diversified portfolio. According to him, all guidelines need to be strictly followed while considering each of them.

He went on to explain the process related details while making investments. He mentioned that the duration depends on the nature of the investments. The holding period depends on the nature of stocks you are holding in the firm. Right issue needs to be carefully considered while going through with the decision. He further elaborated the investment decisions by citing an example of the life cycle of the drug which goes through various stages namely pre-clinical, clinical, NDA Review, Post marketing, launch, generic.

He went on to explain the road ahead for the pharmaceutical sector, through which he explained the important considerations like “Am I paying too much?.” Here, we mentioned that more than numbers, judgment and expertise matter while making investments.

While considering investments in a start-up, sustenance with consistency is a takeaway. He also explained few standpoints including government’s involvement in policy making. He said that the government looks at it holistically, not based on individual investor’s interest.

He also explained certain concerns while making investment decisions, few of which include life cycle phase wherein it possibly still be in early investment phase involving high R&D cost. Management’s strategy of in-organic growth, low tax%- take has its subsidiaries in countries where they book R&D expenses and outspoken management i.e. the number of media interactions include some of the other concerns. He ended the discussion by quoting wise quoting as an requisite to good investment decisions.

Manthan 2017: Day 2: Guest Lecture 3: “Credit Rating Perspective”- Mr. Shaik Mohammed Haneef, Deputy Manager Business Development, ICRA.

IMG_9348

Mr. Shaik Mohammed Haneef from ICRA enlightened the students about the various types of credit ratings and how it is evaluated from the point of view of ICRA in his session on ‘Credit Rating Perspective’. He stated that ICRA majorly evaluates and provides credit ratings and non-credit ratings which are used by clients for understanding a corporate’s credit state.

He elaborated and explained on various credit ratings such as SME Rating, bank loans, infrastructure projects, and commercial papers. He also put some light on non-credit ratings such as real estate grading, solar grading, ESCO (Energy Services Company) grading which is used to understand energy efficiency, and vendor rating.

Mr. Haneef further elaborated on the four different sources of risk such as industry risk, business risk, financial risk, and management risk. He later gave a practical understanding of the risks to the students through the ICRA website followed by answering some intuitive questions by the students on the same.

Manthan 2017: Day 2: Guest Lecture 1: “Operational risk” – Mr. Lalit Taneja, Regional Director, Global Association of Risk Professionals.

IMG_9327

The topic being discussed in the guest lecture was operational risk. Mr. Taneja explained to the students the concept of operational risk using Basel Committee’s existing definition. It is basically the loss that is incurred due to failed internal processes, people, and systems or from external events. He also explained that individual banks can adopt their own definitions of operational risk if the minimum elements in the Committee’s definition are included. A key takeaway from the discussion was that operational risk is inevitable and cannot be zero.

Mr. Taneja briefly spoke about internal & external fraud, employee & workplace safety, clients, products and business practices, and process management. He emphasized the importance of operational risk indicators. These indicators are vital in identifying potential losses and tend to be specific to organizations.  They refer to lagging/ex-post measures and information on events that have already taken place (examples include failed trades, settlement errors). It is up to the risk managers to transform lagging into leading indicators. This process can be carried out by changing the focus of the indicators or even by adding new information. Thus, the focus of these indicators could be changed to highlight issues that are still outstanding or remain open after a specified period of time. The transformation of these processes is difficult to implement in reality. He went on to explain three types of risks namely:

  1. Legal risk – It is included in operational risk. It refers to the risk of disruption to operations due to unenforceable contracts, lawsuits, adverse judgments and legal proceedings.
  2. Reputation risk – Although this type of risk isn’t usually considered, reputation risk is very critical to a business. It refers to negative public opinion. A fall in a company’s reputation can result in liquidity difficulties and falling share prices.
  3. Business or strategy risk – It arises from an adverse shift in the assumptions, goals and other features that underpin a strategy.

The next part of the lecture was about the latest trends and approaches. Mr. Taneja spoke of the relevance of frameworks, advanced analytics, strategic planning, stakeholder feedback, advanced management approach and the need to forecast “black swan” events. Post the discussion, Mr. Taneja answered questions which were along the lines of operational risk, risk management, and its applicability. He was able to explain the concept exceedingly well because he was able to relate it to real life examples in corporate organizations and financial institutions.