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

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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.

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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.

MANTHAN 2017: DAY 1: Inaugural Ceremony

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The inauguration ceremony of Manthan 2017, the annual budget conclave of T. A. Pai Management Institute, Manipal was held today. The theme for this year’s event is “Evaluate Empower Exceed”. It started off with an insightful address to students by the Director-in-chief, Prof. Gururaj Kidiyoor and was followed by an informative speech by Prof. Madhu Veeraraghavan. He spoke about the TAPMI Finance Lab and the intent behind establishing it. It was started in the year 2013 and was established with a vision to position TAPMI as a leader in Banking and Finance education in the country. This goal is continuously pursued by training students in real time trading and investments in one of the finest finance labs in India today.

TAPMI has always strived hard to make its finance courses industry relevant and SMIC is one such course. Students today are neither interested in learning only theories, nor they want to limit themselves to writing papers and journals. They want real world experiences and this is explicitly the reason why SMIC was introduced as a course. SMIC is a course specially designed for students to train them in the art of investment. Students learn the fundamentals of trading and are provided real money for investing. This differentiates TAPMI from other colleges where trading happens only through simulations and lack real-time experience. With the vision to bridge the gap between theory and practice, SMIC provides hands-on experience to the students for growing and developing to become successful investors.

The ceremony was followed by the SMIC presentations. It was indeed an extremely proud day for TAPMI to celebrate and demonstrate excellence through the 11 teams who worked really hard for days and presented their portfolios before the industry experts.  The teams comprised of both PGDM and BKFS students. The students got an opportunity to act as real-world investors and present their investment ideas before industry experts. The judges reviewed each team’s work and provided suggestions after finding out weak areas in each plan. The feedback from the judges was a great value addition for the teams and helped them identify areas of improvement.

30th Edition: Atharva

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Atharva– the 30th installment took off on the 13th of Januray in T. A. Pai Management Institute, Manipal. It provides a platform for young budding managers to showcase their talents. This business school fest not only includes some rigorous competitions to test the mettle of the competitors, it also saw various industry stalwarts interacting with the students. Mr Gururaj Kidiyoor, Director, T A Pai Management Institute, and our honourable chief guest, Mr Denny Joseph, Director, KPMG Global Services, graced the inaugural ceremony with their presence.

The first day saw the qualifying rounds for Sankalp (the business plan competition), sHRishti (showcasing talents in hiring, training and retaining employees), Infinity (showcasing knowledge and talent in the analysis of Mergers and Acquisitions) and Make Your Mark (exhibiting competence in the field of marketing). The day concluded with Vibes, the inter-collegiate dance competition where TAPMI emerged as the winner. It was followed by the talent show competition Blaze where awards were given to Mr and Ms Blaze.

The next day was no respite for the students. As competitors from TAPMI, IMI New Delhi, IFMR, KJ SIMR and SIBM fought for the top spots, the events got even more brutal. The students had the opportunity to interact with Mr Bharat Dave, Manager, BSE who took a session on “Overview of Security Markets”. He explained position monitoring, circuit filters and surveillance system present in BSE to protect market participants. He concluded by saying you can become a millionaire and billionaire if you follow the rules and be a disciplined investor. The day continued with Run for a Cause, a marathon organised to raise funds for the underprivileged students of Academy School. Students from various colleges around Manipal and from T A Pai Management Institute participated in this generous cause. TAPMI’s in-house band, YTBN (Yet to be Named) brought this hectic day to a conclusion. They performed to various melodies across genres. It kept the students engaged and recreated the lively environment in the college.

The event reached a crescendo with the third day. The competitions witnessing an intense final with teams going head to head for the top spot. Xpressions was the in-house competitions for the students of TAPMI. They included Khoj (treasure hunt) and Point and Shoot (Counter Strike Competition), for the students to have some fun contention. In the valedictory ceremony, all the top teams were given their rewards after 3 intense days of battling it out. Evening saw the event Libaaz, the fashion show competition. The glamorous event was the perfect ending to the 30th installment of Atharva.

Maneeshi 2017: Day 2: Panel Discussion- “Corporate Entrepreneurship”

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The 8 Panelists along with the Moderator, Prof. Ishwar Haritas, shared their thoughts on the topic “Corporate Entrepreneurship”.

Prof. Sushil, Chair Strategic Management Group, DOMS, IIT Delhi

Prof. Sushil said that Corporate Entrepreneurship is an ambiguous area. He took the analogy of Alice in Wonderland and students going to industrial wonderland. He believes that to be an individual entrepreneur or be it in corporate entrepreneurship, most important aspect is to have a vision as to where to reach. He further stated that corporate entrepreneurship contributes only to certain areas for competitiveness and took Indian illustrations such as HCL, Kinetic, and ITC. He concluded with the mantra “To give a LIFE (Learning, Innovation, Flexibility, and Entrepreneurship) to your organization

Mr. T V Ganesh, CEO, Indiaproperty.com

Mr. Ganesh stated that the fundamental problem running a company or encouraging innovation is-How to let people think within a frame of mind with nothing to lose. He continued that there is an absence of structured framework where employees would be allowed to make mistakes, helping encourage a culture of risk-taking and innovation. He quoted that “Challenge today is to set up an environment to encourage such risk-taking.”

Mr. Srinivas Prasad, Head, Gravitas Advisory

Mr. Srinivas Prasad stated that not all entrepreneurship comes internally, but might also come externally like in the case of CISCO, Intel and Google capital. He added that large companies are looking at accelerators to come up with new ideas for business which help them to stay in touch with disruptions.

Mr. Rohit Rao, Director, Grant Thorton

Mr. Rohit Rao started off by stating that corporate entrepreneurship depends on the kind of organization you are from and the onus is on the company to constantly innovate. He defined the values to be CLEAR- Collaboration, Leadership, Egility, Ability, and Respect. He also commented that the bigger a company gets, more the probability of lethargy to creep in. He believes it is important to foster right talent in terms of encouraging entrepreneurship.

Mr. Vaitheeswaran, Speaker, Angel Investor, Mentor

Mr. Vaitheeswaran said that Corporate entrepreneurship is the fashion in the fag, it will follow a similar trajectory like the start-ups. There is a need to corporates to venture into entrepreneurship to keep up with the competitiveness. He even mentioned that the biggest challenge is the unwillingness of corporates to invest their funds in innovative ideas due to the risks. He believes that the culture of an organization makes a difference in the success of corporate entrepreneurship.

 Mr. Darshan Doshi, Head Program Reliance Jio GenNext Hub

Mr. Darshan Doshi believes that the technology front and talent pool play the main role in corporate entrepreneurship. One should be willing to take ownership and adapt new technologies to grow in the market. The purpose of every entrepreneur within and outside an organization is to find the market need. He said that we need to identify and solve the problem. He concluded by saying that an organization’s returns should be exponential after executing an action plan.

Mr. Manish Harodia, Co-founder, and Head of Marketing & Sales, DreamWallets

Mr. Manish started the discussion by stating that the learning in one month of entrepreneurship is equal to the two years spent in a B- School case study methodology. According to him, entrepreneurship is a multiplier of an idea, product, team, and execution. The success of any business depends on the timing of the market. It is the deciding factor for the success of any idea. He shared his thoughts on how demonetization gave rise to many whacky ideas. Individuals with such ideas are influencing big enterprises to change the way organizations are working. He emphasized on idea generation and implementation.

Mr. Saumyajit Guha, Co-Principal, Jaarvis Accelerator

Mr. Saumyajit Guha started the discussion by citing examples in solving problems innovatively in the corporate world. According to him, the manner in which a problem is solved leads to corporate innovation. He said that an entrepreneur is comparatively more free to take risks and launch a new product or service unlike the corporate. This is because of the accountability and ownership factor which is lacking in the corporate. The challenge in the corporate is the job mentalities of the employees, which plays a major role in the execution of successful operations.

Maneeshi: Inauguration Ceremony

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Maneeshi the first installment held in T. A. Pai Institute of Management was inaugurated on the 28th of January. This initiative is launched by Omega, the consultancy wing and SEG, the social endeavour group of TAPMI. The theme of the event is “Entrepreneurship as Competitiveness”. This captures the true spirit of the entrepreneur scene currently prevalent in the country. The ceremony started with the invocation song and lighting of the lamp.

Professor Gururaj Kidyoor, the Director at TAPMI opened the inauguration by introducing the theme to the present guests, faculty and students. He feels that when we think of a start-up or a new entrepreneurship initiative we only think of e-commerce. The other sectors are not given the due weightage or importance because of the lack of knowledge or awareness. He concluded by saying the events like Maneeshi explore other avenues which emphasize on social transformation and not just to feed in consumerism.

Prof Kidyoor welcomed the chief guest of the event Mr Gautam Pai, Managing Director of Manipal Technologies, onto the stage to give his views. He explained that a country like India had a huge potential given the vast talent pool and the major social issues awaiting a simple solution. But he feels the major problem lies in the fact that there is taboo for a business failing. This mentality forms a major block because for higher risk one needs to take higher returns. He went on to explain the various reasons that India is an open playing field for start-ups because of the various problems awaiting a simple solution.

The inauguration ceremony came to an end with exciting events lined up. The panelists and participants for these events geared up for the three day event. The first of its kind, Maneeshi holds a promising and eventful journey for all the guests, faculty and students.

Bounded Rationality, Day-4: ‘The Role of Empathy in Altruistic Behaviour: Evidence from Sequential Dictator Games’ – Prof.Sujoy Chakravarty, Professor (Economics), Jawaharlal Nehru University

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Prof. Sujoy Chakravarty, Professor of Economics at Jawaharlal Nehru University spoke about “The role of empathy in altruistic behaviour: Evidence from sequential dictator games.” He said that economics is a field that isn’t hijacked by crazy people, it is what we have. Even when a lot of things seem. To introduce the topic he differentiated between selfish and non-selfish motive. When it comes to warm glow or altruism, these are non-selfish behaviour. Whereas, reciprocity is a selfish behaviour but indirect reciprocity is more dependent on empathy and could be fuelled by empathy.

Prof. Chakravarty jokingly remarked that reciprocity is the oil that greases the wheel of capitalism. The concept specifies that an individual will be generous to another individual only when that individual has been good to him before. He talks about three types of reciprocity: downwards, upwards and indirect. He explained that in downstream reciprocity, “B helps A, C observes B. as a result C is more generous to B.” Whereas, in upstream reciprocity, “A helps B. B is more generous to C if has been generous to B.” But according to him, indirect reciprocity functions differently, it leads to an individual helping another one who has not interacted with him nor is there a chance of interacting with him in the future. According to Prof. Chakravarty, in indirect reciprocity “A helps B, this observed by C.  C will behave generously with B if A hasn’t.” In this case B gets two chances to play this game. C’s action will act as a compensation for A’s action.

Prof. Chakravarty has conducted his research on a large sample. He told the audience about the methodology of the study and how he has come to the conclusion of his research. He said the control conditions are empathy, randomness and information. His work is still underway and he said that he is still finding faults in his own research and trying to tease out other alternatives. He welcomed the audience to critique his work. It was an enriching and learning experience to go through the entire process o how the research is growing.