Risk Management in Financial Institutions (RMFI)
Risk Management in Financial Institutions (RMFI)
Full Marks: 100
Module A: Introduction
- Risk Management, Scope and concept of Risk Management and Enterprise Risk Management (ERM)
- Risk Culture, Risk Strategy, Risk Appetite and Tolerance
- Risk Assessment and Treatment
- Risk Governance and Organization
- Inherent Risk, Control, Residual Risk
Module B: Risk Identification and Assessment
- Culture of Risk Identification, Process of Risk identification
- Categorization of Risk: Financial and Non-Financial Risks
- Risk Assessment Techniques, Likelihood, Potential Impact
- Selection of significant risks for the enterprise
- Key Risk Indicators (KRI), Risk Register, Risk Rating
Module C: Risk Management Responsibilities and Checklist
- Elements and criteria for a sound risk management system
- Roles: Bank Supervisor, Regulator, Board of Directors, BRMC
- Senior Management: ERMC, CRO – Appointment, Responsibilities
- Risk Management Division (RMD) – Roles & Functions
- Stakeholders – Internal (committees/units), External (regulators, auditors, lenders)
- Risk Architecture, Strategy, Protocol (Checklist)
Module D: Operational Risk Management
- Definition, Components & Factors (People, Process, System)
- Three Lines of Defense (3LoD): Elements and Parties
- Identification, Measurement, Contingency Planning
Module E: Steps of ERM Implementation
- Planning and Designing
- Implementing and Benchmarking
- Measuring and Monitoring
- Learning and Reporting
- Conducting stress testing and reporting to Board/Senior Management
Module F: Policy Initiatives for Development of Risk Management in FIs
- Core Risk Areas by Bangladesh Bank:
- Credit Risk Management (CRM)
- Asset-Liability Risk Management (ALM)
- Foreign Exchange Risk (FX)
- Anti-Money Laundering (AML)
- Internal Control & Compliance (ICC)
- ICT Risk
- Environmental & Social Risk (E&S)
Module G: Implementation of Basel Capital Framework/Accord
- Basel Framework: Capital Components (CET1, Tier 1, Tier 2)
- Capital ratio limits: maxima, minima, sustainability
- Capital Planning, Dividend Policy, Link to Risk Management
- RWA Measurement under Pillar 1 – Credit, Market, Operational Risks
- Pillar 2 – ICAAP Preparation & Supervisory Review
- Pillar 3 – Market Discipline and Stakeholder Importance
- Liquidity Ratios: LCR, NSFR, Leverage Ratio – Calculations and Importance