BFM in 15 Days: Day 2 Risk Management Video & PDF

Welcome back to the Bank Financial Management in 15 Days series, where our focus is on building strong risk management fundamentals for the CAIIB BFM exam. I hope you have gone through the first part of the series. If you have not, you can find the same video at the link below.

CAIIB BFM Most Expected Concepts by Ashish Sir

Now let’s look at the different concepts Aashish Sir has covered in the second video of BFM CAIIB. Again, this video is going to be very much important and useful for the upcoming exam, as we are targeting to score 60 marks in this session by mastering core risk management topics.

Modules Covered in Day 2

All the concepts in these videos have been covered from Module B and Module C of CAIIB BFM.

• Module B is related to risk management guidelines and majorly BASEL 3 norms. This module forms the backbone of how banks identify, measure, monitor and control different categories of risk such as credit risk, market risk, and operational risk.
• Module C is related to treasury risk management. It deals with how banks manage their treasury operations, foreign exchange exposures, and investment portfolios within the framework of regulatory guidelines.

Day 2 Video: Risk Management Concepts

You can watch the full Day 2 session at the link below:

https://youtube.com/live/aORyJ2zUT1k

Key Concepts Discussed in This Session

In this Day 2 session, we have covered the following important risk management topics:

• Value at Risk (VaR): One of the most widely used measures to quantify the potential loss in value of a portfolio over a defined period for a given confidence interval. We have explained VaR with case studies so that you can solve numerical questions in the exam with confidence.
• Downside Potential: A measure focusing only on the negative side of returns. We have covered both the theory and case studies of downside potential to help you handle tricky exam questions.
• Risk Monitoring and Control: Practical processes that banks follow to keep risks within acceptable limits.
• Risk Mitigation: Strategies and tools used by banks to reduce the impact of various risks.
• Banking Book and Trading Book: The classification of bank assets into banking book and trading book, and how this classification influences capital requirements and the approach to risk management.

How to Use This Session for Exam Preparation

Go through the above video carefully, take notes, and try to solve the case studies along with Aashish Sir. Revising VaR and downside potential numericals more than once is highly recommended, as these are frequently asked in the CAIIB BFM exam. Pair this with the previous Day 1 session to build a strong base before moving to advanced topics in the upcoming days of this 15-day plan.

If you want the PDF file of the same session for offline revision, you can download it below.

Download PDF: BFM English Part 2 – Risk Management Notes

Stay tuned for Day 3 of the BFM in 15 Days series, where we will continue strengthening your risk management preparation with more high-weightage topics.