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Course Overview: Risk Management in Banking

This course provides a comprehensive understanding of risk management practices within the banking sector. You will learn how financial institutions identify, assess, and manage various risks to ensure stability, profitability, and compliance. The course covers key topics such as credit risk, market risk, operational risk, and regulatory frameworks. By the end of the program, you will have a solid foundation in risk mitigation techniques and decision-making strategies essential for effective banking operations.

Course Objective:

• To understand the types of risks encountered by banks and financial institutions.
• To equip learners with tools and techniques for assessing and managing banking risks.
• To develop a working knowledge of regulatory requirements and risk management frameworks.
• To provide insights into risk mitigation strategies to enhance banking efficiency and stability.

Course Content:

Module 1: Introduction to Risk Management

• Definition of risk in banking.
• Overview of different types of risks (credit, market, operational, liquidity).
• Importance of risk management in financial institutions.

Module 2: Credit Risk Management

• Understanding credit risk and its impact on banks.
• Techniques for assessing and mitigating credit risk.
• Credit scoring models and risk-based pricing.

Module 3: Market and Operational Risk

• Overview of market risk (interest rate risk, exchange rate risk).
• Tools for managing market risk (Value at Risk, stress testing).
• Understanding operational risk and its management.

Module 4: Regulatory Framework and Compliance

• Overview of key regulatory frameworks (Basel Accords).
• Role of regulators in risk management.
• Impact of regulations on risk management practices in banks.

Conclusion:

By the end of this course, participants will have developed a deep understanding of the essential components of risk management within the banking sector. They will be equipped with practical tools and strategies to identify, assess, and mitigate risks while ensuring compliance with regulatory standards. The course will prepare learners to play a crucial role in safeguarding the financial stability and profitability of banking institutions.