Risk-Management-Notes-Part-1
RISK MANAGEMENT NOTES – PART 1 for 2022-23 EXAMS
In this post, we will be providing you revision Risk Management notes for paper of CAIIB & Diploma Course of TIRM for 2022 & 2023.
As the exams are due for the Certified Associate of the Indian Institute of Bankers Exams in December 2022 & for IIBF Diploma in Treasury, Investment & Risk Management in January 2023, Learning Sessions has come up with revisionary notes for the latest attempt as per the latest prescribed Syllabus of these two IIBF Exams.
CAIIB ABM - Advanced Bank Management Syllabus Priority
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RISK MANAGEMENT 2022-23 VIDEO LECTURES
Before we begin with the notes, we would like to take your attention to our latest recorded lectures of Risk Management for CAIIB & TIRM (Diploma) Courses.
In these Recorded Lectures (prepared by expert faculty) will include:
The sessions with unlimited views (also downloadable on app)
Mock Tests (include Prev Year Que)
24 by 7 access to materials access through apps & browser
Conceptual clarity
Hinglish language
Latest Syllabus 2022 as IIBF has prescribed
The course is available at Most reasonable prices & can be accessed through:
Android App: LS PRO & Website: iibf.info
Android App: IIBF LEARNING CENTER
iOS App: My Institute
Website: Learning Center (Code: gegkt)
RISK MANAGEMENT UNIT 1:
COMPONENTS OF ASSETS & LIABILITIES IN BANK’S BALANCE SHEET & THEIR MANAGEMENT
In ALM, goals and objectives are analysed and developed, and actions are taken to accomplish them such as development of long-term strategic plans, periodic profit plans, and managing rate sensitivity.
Bank assets represent the ways in which funds are used to generate revenue.
In the Reserves and Surplus account, the share premium is included as well as the balance in the P&L account.
Besides refinancing from the RBI, there are other forms of borrowing.
Besides Bills Payable, Inter-office adjustments, Interest accrued, Provisions for IT, tax deductions at sources, interest taxes, and provisions, are some other liabilities.
Short-term money market loans are those made in the interbank call money market and repayable within 15 days of the loan being made.
Securities investments make up a major part of the Bank’s Balance Sheet.
Cash credits, overdrafts, and loans repayable on demand are all considered loans repayable on demand, although they may have a specific due date.
The income on Investments is earned in the form of Dividends & Interest.
The other income may include profit from the sale of Investments &/or other assets.
As part of Other Income, dividends from subsidiaries and joint ventures are included.
Banks’ financial management is centered on risk management.
As a result of deregulation, there have been a number of discriminatory pricing policies introduced, as well as the need to match maturities between assets and liabilities.
In addition to interest rates and exchange rates, there are liquidity risks involved in the ALM.
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