Risk Management

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Description
The book on Risk Management is a systematic attempt to capture the latest development in risk management, especially with reference to Indian markets. Risk Management in banks has assumed an increasing importance with the globalization of Indian financial markets. Therefore, officers working in risk management departments of banks need to retool, re-equip, and fully update themselves to meet the latest developments, especially in the field of risk management and derivative instruments. The book gives a slightly advanced treatment of the subject as it is meant to be one of the electives for CAIIB candidates. The book is based on rich experience of the team of authors who are well-known both in the banking and the academic world.
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Contents
Module A : An Overview
1.      Introduction
2.      Types of Risks
3.      Risk Management Process
4.      Setting up a Risk Organization
5.      Asset Liability Management — Part I
6.      Asset Liability Management — Part II : Risk Control and Hedging
7.      Some Important Concepts
8.      Capital Adequacy Norms : Understanding Basel Accord and Its Implications
9.      Enterprise Wide Risk Management (EWRM)
Module B : Credit risk Management
10.    Risk and Risk Management Systems in Banks
11.    Risk Management in Banks: Background to Basel Committee
12.    Basel I — What is a 'Bank' for the Purpose of Basel Accord
13.    Basel II — The three 'Pillars' of Basel II and Capital for Operational Risk
14.    Framework for Risk Management
15.    Credit Risk Management
16.    Risk Rating and risk Pricing
17.    Portfolio Management
18.    Loan Policy — Prudential Exposure & Limits on Exposure for Individuals, Institutions, Groups and Banks
19.    Estimating Capital Requirement
20.    Credit Risk — Standardized Approach
21.    Credit Risk — Advanced Approaches
22.    Credit Rating/Credit Scoring: System Design
23.    Credit Nureaus
24.    Stree Test/Sensitivity Analysis/Scenario build-Up/ICAAP
25.    A Brief Introduction to Various Financial Products
26.    RBI Guidelines on Exposure Norms
Module C : Operational Risk Management
27.    Operational Risk Management (ORM)
28.    Sound Practices for the Management and supervision of Operational Risk (SPOR) 7 the Three Approaches to Operational Risk for Capital Allocation
29.    SPOR — Organizational Setup and Key Responsibilities for ORM
30.    SPOR — Policy Requirements and Strategic Approach for ORM
31.    SPOR — Identification, Assessment and Measurement of Operational Risk
32.    SPOR — Monitoring of Operational Risk
33.    SPOR — Controls/Mitigation of Operational Risk
34.    SPOR — Internal Audit — Independent Evaluation of Operational Risk Management Function
35.    SPOR —  Capital Allocation for Operational Risk
36.    Computation of Capital Charge for Operational Risk
Module D : Market Risk
37.    Market Risk — Governance Framework
38.    Market Risk — Identification
39.    Market Risk — Measurement
40.    Market Risk — Mitigation
41.    Market Risk — Risk & Regulatory Capital
42.    Liquidity Risk Management
43.    Basel III — Framework on Liqudity Standards
Appendix : Statistical concepts
1.      Statistical Measures
2.      Probability Theory
Glossary of Risk Terminology
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