CAIIB RISK MNG LIVE Class 4 By Ashish Sir
Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Risk Management (Elective) — CAIIB.
One-liners from this chapter
Free sample — 8 of 66 rapid-fire Q&A cards.
What is the primary objective of Risk Management in banking as per RBI guidelines?
The primary objective is to identify, measure, monitor, and control various risks to ensure the bank's safety and soundness while optimizing risk-adjusted returns.
What is the difference between Risk Identification and Risk Assessment in banking?
Identification finds risks; assessment measures their likelihood and impact.
Which committee is responsible for overall risk management policy at the board level in a bank?
The Risk Management Committee (RMC) of the Board is responsible for overall risk management policy, setting risk appetite, and overseeing implementation of the risk framework.
What is the role of the Risk Management Committee of the Board (RMCB) in a bank?
RMCB oversees risk policy, appetite setting, and risk governance at board level.
What does the term 'Risk Appetite' mean in the context of banking risk management?
Risk appetite is the aggregate level and types of risk a bank is willing to assume within its risk capacity in order to achieve its strategic objectives and business plan.
What is a Risk Register and why do banks maintain it?
A risk register is a document listing all identified risks with their details and mitigation plans.
How is Credit Risk defined under Basel III norms?
Credit risk is the risk of loss arising from a borrower or counterparty failing to meet its financial obligations as agreed, including default risk, migration risk, and concentration risk.
What is the three lines of defence model in banking risk management?
Business units, risk/compliance functions, and internal audit form the three lines.
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