CAIIB RISK MANAGEMENT PATTERN, PASSING CRITERIA

CAIIB RISK MANAGEMENT EXAM PATTERN, PASSING CRITERIA & SYLLABUS

CAIIB is one of the flagship courses offered by IIBF to its members who have either cleared JAIIB or Part-1 of the Associate Examination .

One desiring to write for this exam is supposed to write three papers – two of which are compulsory (i.e Advanced Bank Management & Bank Financial Management) and one is elective is required to be chosen from the given subjects and CAIIB Risk Management is one elective from those.

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RISK MANAGEMENT CAIIB

Risk management theoretically can be defined as the logical development and execution of a plan to deal with potential losses. Risk management focuses on the practices to manage an institution’s exposure to losses or risk and to protect the value of its assets.

The global financial crisis has triggered a change in the wave of risk functions all around the world. Managing the non-financial risks has become very important as the regulators have tightened their compliances and regulations. In order to solve the information problems, institutions are now recruiting skilled employees and systems.

CAIIB RISK MANAGEMENT SYLLABUS by IIBF

The syllabus notified by IIBF for the upcoming CAIIB EXAM for the elective risk management exam is given below:

SUBJECT MODULES UNITS
6. Risk Management a. An Overview This unit explains definition or policies in relation to Risk, Risk Process in Risk Organization, the Key risks involved in banking such as Credit risk, market risk, operational risk, liquidity risk, legal risk, interest rate risk and currency risk.
Asset Liability Management introduces you to the concepts like ALM, ALM organization, ALCO techniques or tools, Duration analysis, Simulation, Gap, Linear & some other statistical methods of control.
Risk measurement & Control talks about the Calculation, Risk exposure analysis, Risk adjusted, return on capital, Capital adequacy norms, Risk management or mitigation policy, Risk immunization policy/ strategy for fixing exposure limits, Risk management policy and procedure etc.
This unit also contains concepts like Norms regarding Capital adequacy , Prudence, Exposure; Concept of Mid office, Forwards, Futures, Options, Regulatory prescriptions of risk management, Strategies and Arbitrage opportunities.
b. Credit Risk Management This unit introduces you to Basel Norms , Three pillars of Basel and Capital for Operational risk, Methods for estimating capital requirements, Methods for estimating capital requirements, Risk rating and risk pricing, Frame work for risk management, RBI guidelines on risk management, Standardized approach for Credit risk & advanced approach, Credit rating or scoring and rating system design, Credit Bureaus, Stress test and sensitivity analysis, Internal Capital Adequacy Assessment Process, Internal Capital Adequacy Assessment Process and Introduction to structured products.
c. Operational Banking Operational Risk also introduces to Basel Norms in relation to operational banking , RBI guidelines, its likely forms and causes for its significant increase, Sound Principles of Operational Risk Management (ORM) -organizational set up and key responsibilities, SPOR – policy requirements and strategic approach, SPOR identification, measurement, control and mitigation of operational risks, SPOR identification, measurement, how to control/mitigation of operational risks, Capital allocation for operational risk, methodology, qualifying criteria for banks for the adoption of the methods & Computation of capital charge for operational risk etc.
d. Market Risk This unit further defines terms & the Prescriptions of Basel Norms, Liquidity & Interest rate risk, foreign exchange & Price risk ( Equity, Commodity risk, Treatment of market risk under Basel, Standardized duration method & Internal measurement approach – VaR )
e. Risk Organization and Policy Risk Organization and Policies focuses on Policy on Risk Management, Inter-linkages to – Treasury, Credit and ALCO etc.

IIBF CAIIB EXAM PATTERN & PASSING CRITERIA for RISK MANAGEMENT