Banking Risk Management - Become a Risk Manager in Bank
- Description
- Curriculum
- FAQ
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Introduction:
In today’s rapidly evolving financial landscape, effective risk management is critical for the stability and profitability of banks. This course provides an in-depth understanding of the various types of risks that banks face, including credit, liquidity, interest rate, and foreign exchange risks. Students will explore how risk management frameworks, strategies, and tools are employed to mitigate these risks. Through detailed lectures and practical examples, participants will learn how to assess and manage risk in alignment with regulatory requirements and industry best practices.
Section 1: Risk Management in Banks
This section serves as the foundation of risk management, introducing students to the core concepts and processes involved. The journey begins with understanding what risk is, followed by a detailed exploration of the risk management process, including step-by-step procedures that banks undertake to manage their risks. Students will examine the critical role of the board and senior management in overseeing risk, and how robust internal controls and Management Information Systems (MIS) are essential for effective monitoring. Various types of risks—credit, liquidity, interest rate, and foreign exchange—are analyzed in depth. For each risk type, students will learn about its unique challenges and the corresponding oversight responsibilities, policies, procedures, and measurement techniques employed by financial institutions.
Section 2: Credit Risk in Banks and Its Management
This section focuses on credit risk—the risk of a borrower defaulting on a loan or financial obligation. It starts with an introduction to credit risk, explaining its causes, consequences, and the need for proper loan appraisal. The section highlights the importance of a bank’s credit strategy, policies, and limits, while delving into tools and instruments used for credit risk management. It covers essential topics such as internal risk rating systems, managing problem credits, and the role of MIS and internal controls in monitoring credit risks. Additionally, the section explores credit risk management in investment banking and off-balance-sheet exposures, providing practical steps for risk evaluation and mitigation.
Section 3: Credit Risk Modeling and its Application in Banks
In this section, students dive into the world of credit risk modeling, which is crucial for predicting and managing credit risk in modern banking. The section begins by defining credit risk and exploring key concepts like capital structure modeling and risk measures. Students will learn about loss-given-default (LGD) and exposure-at-default (EAD) estimations, which are vital for assessing a bank’s exposure to credit losses. Real-world challenges in credit risk modeling, along with illustrative examples of unexpected losses, are discussed to help students apply theoretical concepts to practical scenarios.
Section 4: Different Types of Risks in Banks
The final section broadens the scope to include the various types of risks that banks encounter, such as liquidity risk, market risk, and operational risk. Students will explore the management strategies and controls required for each risk type, including liquidity risk management, market risk audits, and legal risk assessments. Special emphasis is placed on internal controls, compliance, and fraud prevention. Through real-world examples, students will gain insights into managing system failures, legal disputes, and operational inefficiencies in banks. The section also touches on credit risk in investment banking, highlighting off-balance-sheet exposures and the steps necessary for robust risk management.
Conclusion:
This comprehensive course equips students with a detailed understanding of risk management practices in banks and financial institutions. By the end of the course, participants will have gained valuable insights into the various risk types, management processes, and regulatory frameworks necessary to maintain financial stability and ensure operational resilience in banks.
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1Course StructureVideo lesson
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2What is RiskVideo lesson
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3Risk Management Process- Step 1 and 2Video lesson
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4Risk Management Process- Step 3 and 4Video lesson
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5Active Board & Senior management OversightVideo lesson
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6Risk Monitoring and MISVideo lesson
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7Internal ControlsVideo lesson
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8Risk management FunctionVideo lesson
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9Types of RisksVideo lesson
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10What is Credit RiskVideo lesson
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11Board and Senior Management Duties for Credit RiskVideo lesson
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12Credit StrategyVideo lesson
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13Credit PoliciesVideo lesson
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14Credit LimitsVideo lesson
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15Credit OriginationVideo lesson
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16Internal Risk Rating SystemsVideo lesson
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17Managing Problem CreditsVideo lesson
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18MIS in Credit RiskVideo lesson
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19Credit Risk- Internal ControlsVideo lesson
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20What is liquidity RiskVideo lesson
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21Liquidity Risk Management responsibilities of Board and ManagersVideo lesson
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22Asset Liability CommitteeVideo lesson
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23Liquidity Risk StrategiesVideo lesson
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24Liquidity Risk PoliciesVideo lesson
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25Liquidity Risk Procedures and LimitsVideo lesson
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26Liquidity Risk Monitoring and MeasurementVideo lesson
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27Liquidity Risk- MIS and Internal AuditsVideo lesson
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28What is Interest Rate RiskVideo lesson
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29Repricing RiskVideo lesson
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30Yield Curve RiskVideo lesson
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31Basis RiskVideo lesson
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32Optionality RiskVideo lesson
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33Board and management Oversight in Interest Rate RiskVideo lesson
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34Interest Rate Policies Procedures and LimitsVideo lesson
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35Measuring Interest Rate RiskVideo lesson
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36MIS and Internal Control for Interest rate RiskVideo lesson
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37What is Foreign Exchange Rate RiskVideo lesson
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38Foreign Exchange Rate Risk MeasurementVideo lesson
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39Foreign Exchange Risk MonitoringVideo lesson
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40Foreign Exchange Risk- Internal ControlsVideo lesson
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41What is Price RiskVideo lesson
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42Measuring and Managing Price RiskVideo lesson
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43What is Operational RiskVideo lesson
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44Operational Risk- Responsibilities of the BoardVideo lesson
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45Operational Risk- Policies, Procedures, LimitsVideo lesson
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46Operational Risk Identification ToolsVideo lesson
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47Operational Risk- Monitoring and ControlVideo lesson
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48Operational Risk- Internal ControlsVideo lesson
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49What is Compliance RiskVideo lesson
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50Compliance Risk- Policies and MonitoringVideo lesson
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51ConclusionVideo lesson
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52Introduction to Risk and Credit RiskVideo lesson
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53Credit risks in banksVideo lesson
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54Credit risks as per the RBIVideo lesson
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55Causes of Credit Risk part 1Video lesson
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56Causes of Credit Risk part 2Video lesson
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57Need of correct appraisal of the loanVideo lesson
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58Consequences of Credit RiskVideo lesson
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59Risk ManagementVideo lesson
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60Measurement of riskVideo lesson
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61Credit risk evaluationVideo lesson
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62Computation of Credit riskVideo lesson
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63Risk management in generalVideo lesson
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64Management of Credit RisksVideo lesson
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65Instruments of credit risk management Part 1Video lesson
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66Instruments of credit risk management Part 2Video lesson
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67Other instruments of CRMVideo lesson
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68Credit risk in Investment banking and Off-Balance sheet exposureVideo lesson
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69Effective steps for risk evaluation.Video lesson
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70Introduction to Credit Risk ModellingVideo lesson
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71Defining Credit riskVideo lesson
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72Capital Structure Credit Risk ModellingVideo lesson
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73Credit Risk MeasureVideo lesson
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74LGD Estimation Credit RiskVideo lesson
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75EAD Estimatioat Credit RiskVideo lesson
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76Unexpected Loss ExampleVideo lesson
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77Challenges Credit RiskVideo lesson
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