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.

Advertisements

MANTHAN 2017: DAY 1: Inaugural Ceremony

17155202_10155135043008464_4283250398126183671_n

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.

Day 6: ‘Information Representation: Improving Bayesian Reasoning’- Dr. Michelle McDowell, Research Scientist, Max Planck Institute of Human Development, Germany

dsc_0003

The major takeaway from the lecture titled “Public Understanding of risk: An educational challenge” was that easy and transparent information saves lives. The talk focused on how to represent risks so that people can understand it and make rational decisions. Statistical illiteracy is found to be a collective problem which has major health implications and is commonly observed in patients, journalists and physicians. It basically results from non-transparent framing of information due to cognitive biases, nature of doctor-patient relationship and conflict of interest. The patient’s understanding of risk is found to be low because they fail to ask questions from physicians. Statistical illiteracy can be improved with the better and transparent representation of information which can reduce relative risks. She recommends usage of frequency statements instead of single event probabilities and absolute risks instead of relative risks as it makes understanding more easy and sensible.

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

17

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.

Bounded Rationality: “Introduction and Heuristics in Decision Making”, Professor Gerd Gigerenzer, Director, Max Planck Institute for Human Development; Director, Harding Center for Risk Literacy in Berlin

10

On the 9th of January, T. A. Pai Management Institute was honoured to have Professor Gerd Gigerenzer, Director at the Max Planck Institute for Human Development and Director of the Harding Center for Risk Literacy in Berlin to give a lecture on Bounded Rationality. His work is renowned globally and participants and students got to hear about his work directly from Prof. Gerd.

He said that if one looks into a book on rational decision-making, good decisions follow logic and their goal is to maximize utility. Although he says it is a beautiful theory, it does not truly capture the essence of how we make decisions. Prof. Gerd’s main objective is to dispel the darkness in which much of our decision theory is based on. Simple heuristics that make us smart because it gives us the basics, and alternatives to think while making a decision.

There are times when we do not know what the consequences of a decision will be. These uncertainties according to Prof. Gerd are mainly when the situation is regarding whom to trust, where to invest and whom to marry. When the consequences of our decision is unknown, rationality cannot be counted as a factor for decision-making. This is when heuristics is used to evaluate our decision making. Optimisation may be a very good model but it gives us the illusion of certainty, thus heuristics is not a second choice.

Prof. Gerd spoke about ecological intuition and toolbox method of thinking as a part of heuristics. He even introduced a concept called Hiatus Heuristics. These concepts and theories were broken down for our convenience and delivered with high simplicity. It was an enriching experience to be sitting in the audience and watch such complex ideas delivered so simply

 

 

“Digitization in Finance” – Mr. Rahul Malhotra, CFO and Vice President, BFSI Vertical, Genpact.

1

In an informative session with students, Mr. Rahul spoke about how drastically the expectations from finance have changed in the recent past and how digitization has played a major role in achieving this. Today every facet of the industry is being impacted by word Digital. Digital is commonly confused with technology but it comprises of much more. It is how a firm’s function, processes and structure is being transformed. “Digital is coming up with ideas to make the work you are doing more refined, organised and simple”, he said.

He spoke about how everything today from organization’s processes and basic foundations to the structure is being automated resulting in a completely digitally driven business. Companies are eager to implement new ideas and things are changing so fast that you can never apply the same concepts. Therefore it is very important for us to quickly adapt to this change.

Digitization can mean different things to different organizations at different times. With numerous technological changes happening, an organization will get confused if it doesn’t have a clear line of vision on what it wants to achieve. Digitization has to be driven precisely by the need and vision of the organization.

Moving further, he talked about the importance of human touch while digitizing. Firms in the aim to digitize are removing the human factor completely. An example of this is how Neural Chat is being worked upon as an experiment by banks to change customer experience completely. In an era, where everything is being automated and robots are taking over, firms must realise that the human factor is still important to deliver customer experience. Digitization is of no use if it doesn’t translate to superior customer experience. The main aim of any business is to make the customer happy. You may have the best system, processes but it will not work if the customer is not happy with the services you provide.

Companies also need to ensure that their front end and back end are streamlined and work hand in hand. Today companies are trying to be objective and use analytics and science in every process. A firm’s customer interaction might be superior but if your backend is weak the process will fall apart.

Moving on he spoke about how Digitization is impacting three broad areas of any business: customer service, operational processes and business model. He talked about how Genpact is helping its clients with their strategy that can help them impart the customer experience and type of operational processes they desire.

He concluded by telling how the world is changing to a digital world which reduces jobs but increases capacity. Today, expectations and roles of Finance in an organization have completely changed. Finance has a role in every major decision of the firm irrespective of the department. The main reason which has led to this change is that with the amount of data available, you need tools such as predictive analytics and forecasting for taking a decision and that requires the help of Finance.

FINOMENAL 2016: DAY 2:”CAREERS IN FRM”-Mr. Lalit Taneja, Regional Director, Global Association of Risk Professionals

dsc_0428-1

In an interactive session with students Mr. Lalit Taneja, Regional Director, Global Association of  Risk Professionals gave the students insights about the various career prospects in the field of Financial Risk Management. The session started off with him telling the students about the key forces driving the demand for risk managers. Before 2008 financial crisis market was driven by sales then post the crisis operations took over and presently the focus has completely shifted to regulation. This demand is the result of many historical drivers some of which are globalisation and integration of markets, increased product complexity, technological advances, regulations and market crisis. Sovereign risk, commodity market volatility, increased focus on organizational risk are some of the factors that have recently further accelerated the demand for risk managers.

He further stated why people are increasingly shifting to jobs in the field of FRM. Financial Risk Management assesses an individual’s ability to measure and manage risk in a real-world environment. What sets FRM apart is reliability, maintenance, validity, and acceptance. In the recent years, new trends have been constantly emerging in FRM. Due to current issues like cyber risk, liquidity risk, and regulatory stress, FRM has become a prerequisite for every organisation. GARP plays an active role in monitoring the work of certified FMR practitioners.

As the session approached its end, he concluded by stating some of the latest trends shaping the role of risk management which includes regulations, technology, advanced analytics and the emergence of newly arrived risks such as model risk, cyber security risk, and contagious risk. With these emerging trends, companies are gearing up to tackle these risks. Organisations are imparting risk education to their employees and are encouraging them to learn by providing benefits like exam preparation leaves, study groups in office and in-house course instructor.