Table of Contents

CONTENTS

EXECUTIVE SUMMARY
HIGHLIGHTS
1. OPERATION MANAGEMENT
1.1 Fund Management
1.1.1 Benefits of Fund Investment
1.1.2 Fund Manager and Management of Funds
1.1.3 Fund Management Process
1.1.4 Objectives of Investment
1.1.5 Role of Fund Manager
1.1.6 Expenses Management in Managing Funds
1.1.7 Fund Management Ratings Process
1.1.8 Hedge Funds concept
1.1.9 Regulatory Issues in Allowing Foreign Hedge Funds in India
1.1.10 Identifying hedge funds
1.1.11 Additional Regulatory Concerns
1.2 Asset Liability Management
1.2.1 Evolution of Asset-Liability Management
1.2.2 Types of Asset Liability Management Risks
1.2.3 Categories of Risk
1.2.4 Asset-Liability Management Process
1.2.5 Scope of ALM
1.2.6 Guidelines for Asset Liability Management system in Housing Finance Companies
1.3 Risk Management
1.3.1 Classification of Risk
1.3.2 Why Risk Matters
1.3.3 Credit Risk Management Models
1.3.4 Requisites of Credit Model
1.3.5 Techniques Used in Building the Credit Risk Models
1.3.6 Risk Mitigation Approaches
1.3.7 Protection against Risk
1.3.8 Basel II and Risk Management
1.4 Regulatory Compliance
1.4.1 Securities and Exchange Board of India
1.4.2 The Organisation
1.4.3 Objectives
1.4.4 Functions
1.4.5 Reserve Bank of India (RBI)
1.4.6 Functions
1.4.7 Regulatory Initiatives
1.4.8‘KYC’ and Anti-Money Laundering Measures
1.5 BASEL II and Its Management
1.5.1 Implementation of Basel II in Advanced Countries and its Impact on Emerging Economies
1.5.2 Implementation of Basel II in Emerging Economies
1.5.3 Impact of Basel II on Emerging Economies
1.5.4 Criticality of Qualitative Factors
1.5.5 Three Pillars of Basel II
1.5.6 Approach of RBI towards Basel II
1.5.7 Basic Indicator Approach
1.5.8 Comparison of Basel I and Basel II
1.5.9 Issues & Challenges in Implementing Basel II
1.5.10 Operation Management and its Importance in the Future
2. MICROFINANCE AND ITS MANAGEMENT
2.1 Definition and Concept of Microfinance
2.2 Models of Microfinance in India
2.2.1 MFI Model
2.2.2 SHG Bank Linkage Model
2.3 Issues and Challenges of Microfinance
2.3.1 Literacy & skill levels of clientele
2.3.2 High transaction and service cost
2.3.3 Credit risk
2.3.4 Skewed regional distribution of microfinance
2.3.5 Diversion of funds to unproductive activities
2.3.6 Regulatory issues
2.3.7 Irregular flow of income due to seasonality
2.3.8 Uncertainty of Market Conditions
2.3.9 Lack of tangible proof for assessment of income
2.3.10 Need for information sharing & better technology
3. CUSTOMER ACQUISITION AND SERVICING
3.1 Customer Relationship Management
3.1.1 Meaning of CRM
3.1.2 CRM in Financial Services Industry
3.2 Understanding Investors and their Needs
3.2.1 Need for recognition and social company
3.2.2 Security needs
3.2.3 Mutual trust
3.2.4 Need for information
3.2.5 Prompt services
3.2.6 Interdependent relationship
3.2.7 Friendly approach
3.3 Developing and Positioning of Financial Instruments
3.3.1 Positioning of Financial Instruments
4. MANAGING FINANCIAL SERVICES ORGANISATION
4.1 Scope of Financial Services Management
4.1.1 Banking
4.1.2 Insurance
4.1.3 Capital and Investment Markets
4.2 Functions of Financial Services Management
4.2.1 Marketing and Sales Function
4.2.2 Research
4.2.3 Training and Staffing
4.3 Distribution Channels of Financial Services
4.3.1 Insurance
4.3.2 Mutual Funds
4.3.3 Banks Distribution Channel
4.4 Management Information System
4.4.1 Objectives of MIS
4.4.2 Steps in Developing MIS
4.4.3 Importance of MIS in the Financial Services
4.5 Outsourcing the Financial Services
4.5.1 Investment Banking
4.5.2 Equity Research
4.5.3 Insurance
4.5.4 Banking
4.5.5 Accounting and Taxation
4.6 Infrastructure Management in Financial Services
4.6.1 IT Infrastructure
4.6.2 Payment and settlement systems
4.6.3 Electronic Clearing Service
4.6.4 Real Time Gross Settlement System
4.6.5 National Electronic Funds Transfer System
4.6.6 Cheque Truncation System
4.6.7 National Electronic Clearing Service
5. EMERGING TRENDS - ISSUES AND CHALLENGES
5.1 Volatility in Global Financial Markets
5.2 Increased Integration of Global Financial Markets
5.3 Increasing Regulatory Supervision
5.4 Changing Investor Needs
5.5 Containing/Reducing the Cost of Administration
BIBLIOGRAPHY
ABBREVIATIONS AND ACRONYM



LIST OF FIGURES
Fig 1.1 Optimal outputs of Credit Risk Management Model
Fig 1.2 Regulatory Authorities of Indian Financial system


LIST OF TABLES
Table 1.1 Risk Mitigation Approaches at Firm Level: Risk Mitigation Type