CAIIB BFME Module B & C By Ashish Sir Class 9
Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Bank Financial Management — CAIIB.
One-liners from this chapter
Free sample — 8 of 65 rapid-fire Q&A cards.
What is the primary objective of Risk Management in banks?
The primary objective is to identify, measure, monitor, and control risks to ensure the bank's financial stability and protect stakeholder value while optimizing risk-adjusted returns.
What is the Standardised Measurement Approach (SMA) for Operational Risk capital?
RBI-mandated approach replacing BIA/TSA using business indicator components
What does ICAAP stand for in the context of Basel II/III?
ICAAP stands for Internal Capital Adequacy Assessment Process, which requires banks to assess all material risks and ensure they hold adequate capital commensurate with their risk profile.
What is Residual Risk in the context of credit risk management?
Risk remaining after credit risk mitigants like collateral are applied
What are the three pillars of Basel II framework?
The three pillars are: Pillar 1 (Minimum Capital Requirements), Pillar 2 (Supervisory Review Process), and Pillar 3 (Market Discipline through public disclosure).
What is the purpose of a Risk Dashboard in bank risk management?
Provides consolidated real-time view of key risk metrics and exposures
What is Market Risk in the context of bank financial management?
Market Risk is the risk of loss arising from adverse movements in market variables such as interest rates, foreign exchange rates, equity prices, and commodity prices in the trading book.
What is Reputational Risk and why is it significant for banks?
Risk of loss from damage to bank's reputation affecting customer trust
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