1. Relationship between Risk and Capital.

2. Role of Basel in Bank Risk Management & ongoing enhancements brought about in Basel III.

3. The types of risk faced by banks and the processes followed by banks for managing them.

4. The Primary risks faced by Banks (Credit, Market & Operational).

5. Risk Management at Enterprise level.

The course is structured in eight modules, with each module catering to a separate risk domain.

Introduction

• About the course

• Brief Objectives

• Relevance

Module I Risk & Capital:

• What is risk?

• Risk & uncertainty

• Risk reward ratio

• Relationship between risk & capital

• Expected and unexpected loss

• Types of capital

Module II Basel & BCBS:

• BCBS origin and role

• Basel Accords

• Basel III enhancements:

Leverage Ratio, LCR, NSFR, CCB, SIBs

Module III Risk Management:

• Types of Risk

• Risk Management process in Banks

• Risk Management framework

• Risk Appetite setting

• Three lines of defence

Module IV Credit Risk Management:

• Introduction

• Risk Drivers

• Assessment and mitigation

• Capital charge

Module V Market Risk Management:

• Introduction

• Risk Drivers

• Assessment and mitigation

• Capital charge

Module VI Operational Risk Management:

• Introduction

• Risk Drivers

• Assessment and mitigation

• Capital charge

Module VII Enterprise Risk Management:

• Introduction

• Supervisory Review Process & ICAAP

Module VIII Final Evaluation