Overview

This eCourse consists of two modules. Module 1 describes how banks take risk into account when setting business strategy and how risk appetite is aligned with business objectives once the strategy is determined. It also explains the importance of a risk management framework and how the various elements of the framework work together when setting and implementing risk appetite. Finally, the module examines the risk decision process in detail and outlines the factors, including the human element, that can affect decision-making.

Module 2 examines the difference between “originate-to-hold” and “proactive” approaches to managing risk as well the various tools and techniques available for managing risk. These include tools and techniques for assessing risk and make risk decisions, reducing the likelihood of a risk event occurring, reducing the impact of a risk event, and managing risk exposure. The module also outlines the many factors to be taken into account when selecting a risk management tool or technique for a particular situation.

Objective

On completion of this course, you will be able to:
- Recognize the relationship between business strategy and risk and the importance of aligning risk appetite with strategy
- Identify the stages in the risk decisioning process and how such decisions can impact risk exposure
- Recognize the different approaches that banks can take to risk management
- Identify the various tools and techniques that can be used to manage or mitigate risk

Content

Module 1: Risk Management - Business Strategy & Risk Decision-Making
Topic 1: Business Strategy & Risk
Topic 2: Risk Decision-Making

Module 2: Risk Management - Tools & Techniques
Topic 1: Approaches to Managing Risk
Topic 2: Tools & Techniques