How to Prepare for the IC 86 Risk Management Exam of the Insurance Institute of India Professional Exams

The IC 86 Risk Management exam is one of the most prestigious and challenging examinations offered by the Insurance Institute of India, carrying the highest credit point of 40. It is a crucial step for aspirants seeking an Associateship or Fellowship diploma. Success in this exam requires a strategic approach to preparation, especially given the depth and breadth of the syllabus. In this article, we’ll provide a chapter-wise guide to preparation based on the learning outcomes and tips to master the exam efficiently.

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Preparation Strategy

1. Understand the Exam Structure and Weightage

   • Study the chapters in sequence, as the concepts build progressively.
   • Allocate time proportionate to the complexity of the chapters and the number of learning outcomes.

2. Leverage Chapter Learning Outcomes
   Focus on understanding and applying the learning outcomes of each chapter. The exam tests both theoretical knowledge and its practical application.

3. Practice Writing Answers

   • Develop concise yet comprehensive answers.
   • Use case studies, examples, and diagrams wherever applicable to illustrate your understanding.

4. Revise Key Concepts Regularly

   • Create summary notes for quick revision.
   • Focus on retention techniques such as flashcards and mnemonic devices.

5. Attempt Mock Tests
   Practice with mock exams to understand question patterns, manage time, and evaluate your preparation level.

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Chapter-Wise Preparation Tips

Chapter 1: Risk & Theory of Probability

Key Focus Areas:

• Understand the distinctions between risk and uncertainty.
• Learn the classifications of risks and concepts like risk attitudes and costs.
• Practice explaining risk concepts with real-world examples.

Preparation Advice:
Master theoretical definitions and apply probability concepts to risk-related scenarios. Use diagrams to classify risks effectively.

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Chapter 2: Risk Management - Scope & Objective

Key Focus Areas:

• Contributions and benefits of risk management.
• Familiarize yourself with the risk management approach and concepts.

Preparation Advice:
Emphasize the role of risk management in organizational success. Understand how risk management integrates into business objectives.

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Chapter 3: Building-up an Effective Risk Management Programme

Key Focus Areas:

• Objectives of risk management programs.
• Role and function of a risk manager.

Preparation Advice:
Focus on understanding policy creation and the steps required to establish a risk management framework. Study case studies of successful risk management programs.

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Chapter 4 & 5: Risk Management Decision-Making Process (Parts 1 & 2)

Key Focus Areas:

• Risk exposure assessment and mapping.
• Risk financing and alternative techniques.

Preparation Advice:
Learn to evaluate different risk financing options. Practice risk mapping exercises and identify optimal techniques through case analysis.

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Chapter 6: Alternative Risk Transfer Mechanism

Key Focus Areas:

• Alternative risk financing products.
• Capital markets as risk transfer mechanisms.

Preparation Advice:
Focus on understanding the mechanics of alternative risk transfer products and their relevance in modern insurance markets. Explore recent trends in capital market integration.

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Chapter 7: Enterprise Risk Management (ERM)

Key Focus Areas:

• ERM implementation and process.
• Decision-making within ERM frameworks.

Preparation Advice:

Study how ERM influences organizational objectives and management practices. Use examples to explain ERM’s contribution to value creation.

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Chapter 8: Business Continuity Management & Disaster Recovery

Key Focus Areas:

• Business Continuity Planning (BCP).
• Disaster recovery phases and standards.

Preparation Advice:

Understand the end-to-end BCP process. Create flowcharts to outline disaster recovery steps and standards for effective recall during the exam.

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Chapter 9: Loss Exposures for Major Classes

Key Focus Areas:

• Liability, property, and net income loss exposures.

Preparation Advice:

Learn to identify and categorize loss exposures across major classes. Develop the ability to provide mitigation strategies for each type of loss exposure.

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Chapter 10: Risk Management Checklists

Key Focus Areas:

• Contingency and emergency planning.
• Property protection and liability checklists.

Preparation Advice:

Memorize the checklists and their applications. Practice drafting a checklist based on real-life risk scenarios for different organizations.

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General Study Tips

• Use Standard Study Materials: Rely on books and resources provided by the Insurance Institute of India.
• Participate in Discussion Forums: Engage with peers preparing for the exam to exchange insights.
• Seek Mentorship: Reach out to professionals who have cleared the exam for guidance.
• Stay Consistent: Dedicate daily study hours to cover all chapters systematically.

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The IC 86 Risk Management exam demands a comprehensive understanding of risk concepts and their practical applications. By following this chapter-wise guide and staying disciplined in your preparation, you can master the exam and secure the prestigious 40 credit points.