CAIIB Risk Management Syllabus 2026, Subject Wise Topics, Exam Pattern
CAIIB Risk Management Syllabus 2026 covers subject-wise topics, latest exam pattern, marking scheme, and key focus areas to help candidates plan preparation effectively and score better in the exam.
Priyanka Dahima4 Feb, 2026
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CAIIB Risk Management Syllabus 2026: The Indian Institute of Banking and Finance (IIBF) has defined the syllabus for the Certified Associate of the Indian Institute of Bankers (CAIIB) Course. The CAIIB syllabus has been recently updated to make the course more relevant and to emphasize a deeper understanding of concepts. The CAIIB holders are allowed to take the Certificate Examinations in 5 elective subjects to enhance their knowledge and skill in specialized areas as a part of the Continuing Development Program.
In the article, we have provided the detailed CAIIB Risk Management Syllabus 2026 and Exam Pattern.CAIIB Risk Management Syllabus 2026
Candidates taking the CAIIB Risk Management Examination should specifically equip themselves to respond to queries that could arise regarding the most recent advancements occurring within the various subject/s of the examination, even if those topics have not been explicitly mentioned in the CAIIB Risk Management Syllabus 2026. Additionally, questions concerning contemporary developments in banking and finance may be posed. Candidates are recommended to consult financial newspapers/ periodicals, especially “IIBF VISION” and “BANK QUEST” published by the Institute. There are 5 elective papers -- Rural Banking
- Human Resources Management
- Information Technology
- Risk Management
- Central Banking
CAIIB Risk Management Syllabus
MODULE A: RISK AND RISK MANAGEMENT FRAMEWORK
Why Banks are Special
Functions Banks Perform, Bank’s Role in the Economy, Other Uniqueness of BanksRisks and Risk Management in Banks
What is Risk?, Definition of Risk, Risk in Banks, Business Risk vs Control Risk, Financial Risk vs Non-Financial Risk, Interconnectedness Among Banking Risks, Recent Developments Connected with Risk Management, Banking Reforms in India, New Trends in Indian Banking System, Risk Management Going Ahead, Various Types of Risks Faced by a Bank, Non-Financial RisksRisk Management Framework
Lessons from Crisis, Benefits of Risk Management, Risk Management Concept, Risk Management Approach, Risk Culture, Risk Management Architecture, Elements of Risk Management Framework, Organisational Structure, Risk Management Policy, Risk Appetite, Risk Limits, Risk Identification Pro- cess, Risk Measurement, Risk Mitigation, Risk Monitoring and Risk Control, Management Information System, Enterprise Risk Management, Events-Risk and Opportunity, Enterprise Risk Management Defined, Achievement of Objectives, Components of Enterprise Risk Management, Relationship of Objectives and Components, Effectiveness, Encompasses Internal ControlAsset Liability Management and Interest Rate Risk in Banking Book
What is ALM?, Objectives of ALM, ALM Process, Interest Rate Risk, Duration GAP Analysis, Measurement System Reports, Stress Testing, Back Testing, Interest Rate Risk MitigationLiquidity Risk Management
What is liquidity?, Liquidity and solvency, Forms of liquidity risk, Liquidity Management, Factors contributing to liquidity risk, Liquidity risk and Balance Sheet, Risk Management framework for Liquidity Risk, Identification and measurement of liquidity riskMODULE B: CREDIT RISK
Credit Risk Management Framework
What is Credit Risk?, Obligor (or) Borrower Level Risk vs Portfolio Risk, Systematic vs Unsystematic Risk, Need for Credit Risk Management Framework, Credit Risk Culture, Building Blocks of Credit Risk Management, Strategy, Financial Goals, Risk Appetite, Portfolio Risk and Reward, Loan Policy, Due Diligence Process, Loan Approval Process, Limits on Aggregate Loans and Commitments., Underwriting Criteria, Exceptions to Credit Policy, Organization StructureObligor/Borrower Risk
Business Risk (or) Operating Risk, Financial Risk, Interaction between Business Risk and Financial Risk, Different Risk Levels, Sources of External Risk, Industry Risk Analysis, Entity Level Risk, Financial RiskCredit Rating System
What is Credit Rating?, Usefulness of Rating System for Banks, Features of Internal Credit Rating System, Rating Exercise and Rating Assignment, Rating by External Rating AgenciesPortfolio Credit Risk
Systematic Risk, Unsystematic/Ideosyncratic/Diversifiable Risk, Concentration Risk, Correlation RisksCredit Risk Models
Uses of Credit Models, Types of ModelsMeasurement of Credit Risk
Probability of Default (PD), Methods for Estimating PD, Exposure at Default, Loss Given Default (LGD), Portfolio Assessment of Credit Risk, Risk Adjusted Return on Capital (RAROC), Application of the Concept of Economic Capital in RAROC Model, Uses of RAROC, Risk Based Pricing, Methods of Risk-Based PricingCredit Derivatives
What is a Credit Derivative?, Protection Buyer, Protection Seller, Advantages to the Protection Buyer, Advantages to the Protection Seller, Credit Events, Payout, Credit Default Swap, Total Return Swap (TRS), Credit Options, Credit-Linked NotesMODULE C: MARKET RISK
Market Risk
What is Market Risk?, Trading Portfolio in a Bank, Interest Rate Risk, Equity Price Risk, Foreign Ex- change Risk, Commodity Price Risk, Liquidity Risk, Credit and Counterparty Risks, Model Risk, Market Risk Management Framework, Organizational Structure to Manage Market Risk, Organizational Structure for Trading Activity, Risk Management Strategy, Policies and ProceduresFixed Income Securities
What is a Bond?, Government of India in the Bond Market, Bond Market in India, Bond ValuationMeasurement of Interest Rate Risk
Measurement of Interest Rate risk, Sensitivity approach, Price value of a Basis point method, Computation of portfolio PVBP, Hedging using basis point value, Other uses of PVBP, Duration, Definition of duration, Properties of duration, Portfolio duration, Modified Duration and Price elasticity of interest rate, Price volatility characteristics of Bonds, Convexity, Bond portfolio managementValue at Risk
Historical background, Definitions of VaR, Assumptions for calculation of VaR, Building blocks of VaR, VaR methodology, Comparison of different methodologies to compute VaR, Comparative advantages and disadvantages of various methods to compute VaR, Limitations of VaR, Extreme Value Theory, Stress Test, Back testing of VaR modelsMODULE D: OPERATIONAL RISK
Operational Risk and Operational Risk Management Framework
Developments Giving Rise to Increasing Operational Risk, Peculiarity of Operational Risk, Definition of Operational Risk, Operational Risk Culture, Operational Risk Organizational Framework, Policy Guide- lines and Strategic Approach, Operational Risk Identification Process, Assessment of Operational RiskCollection of Internal Loss Data and External Loss Data
Collection of Loss Data, Minimum Loss Data Standard, Specific Criteria on Loss Data Identification, Collection and Treatment, Near Misses and Opportunity Costs, External Loss Data, Root-Cause AnalysisRisk and Control Self-Assessment (RCSA) & Key Risk Indicator (KRI)
RCSA Process, Defining Inherent Risk, Study of Effectiveness of Control, Computation of Risk Zone, Col- or Coded Risk Levels, Key Risk Indicators, Various Forms of KRI, Selecting KRIs, Risk Appetite, Scenario Analysis, Uses of KRIsTechnology Risk
Basic Principles of Information Security, Information Security Governance, Organizational Structure, Roles and Responsibilities, Critical Components of Information Security, Security Measures Against Malware, Patch Management, Change Management, Audit Trails, Information Security Reporting and Metrics, Information Security and Critical Service Providers/Vendors, Network Security, Remote Access, Distributed Denial of Service Attacks (DDoS/DoS), Implementation of ISO 27001 Information Security Management System, Wireless Security, Business Continuity Considerations, Information Security Assurance, General Information Regarding Delivery Channels, Emerging Technologies and Information Security, Implementation of Recommendations of the Working Group on Information Security, Electronic Banking, Technology Risk Management and Cyber FraudsCorporate Governance
Corporate Governance Definition, Corporate Governance – Banking Industry Perspective, Basel Committee and Corporate Governance, Importance of Risk Management in Corporate Governance, Benchmarking Risk GovernanceClimate Risk and Sustainable Finance
Climate Situation in India, Basel Committee and Climate Risk, Climate Risk, Unique Characteristics of Climate Change and Implication, Financial Risks Emerging from Climate Related Risk, Climate Risk Management Framework, Green Finance for Sustainable DevelopmentMODULE E: BASEL AND RBI GUIDELINES ON RISK MANAGEMENT
Why Do Banks Need Regulation?
Need for Regulation of Banks, Banking Regulation and Supervision, Banking Regulation and Supervision in India, Global Banking Regulation, Basel Committee on Banking Supervision, The Concordat, Basel-I Accord, Basel Committee Amendment 1996, Basel II AccordGlobal Financial Crisis and Basel III
Regulatory Shortcomings and Regulatory Reform, Response of Basel Committee to Global Financial CrisisRegulatory Capital and Capital Adequacy
Bank Capital: An Accounting Residual, Why Bank Needs Capital, Should Regulator Prescribe Minimum Capital for Banks?, Basel III Capital Regulation, Standardized Approach - Capital Charge for Credit Risk, Off Balance Sheet Items, Total Counterparty Risk, External Credit Assessments, Applicability of ‘Issue Rating’ to Issuer/Other Claims, Credit Risk Mitigation, Internal Rating Based ApproachCapital Allocation Against Market Risk
Scope and Coverage of Capital Charge for Market Risks, Measurement of Capital Charge for Interest Rate RiskCapital Charge for Operational Risk
Definition of Operational Risk, The Measurement Methodologies, The Basic Indicator Approach, The Standardized Approach, Advanced Measurement Approach, Shortcomings of Present Approaches for Calculating Capital Requirement for Operational Risk, New Standardized Approach, Business Indicators, Risk Weighted Assets, Technical Guidance Note on Minimum Capital Requirements for Operational RiskSupervisory Review Process and Internal Capital Adequacy Assessment Process (ICAAP)
Objective of Pillar 2 Supervisory Process, ICAAP Principles, Definitions, Coverage by ICAAP, The Structural Aspects of the ICAAP, Risk Appetite, Actual and Target Risk Structure, Identifying, Measuring, Monitoring and Reporting of Risk, Internal Control, Submission of the Outcome of the ICAAP to the Board and the RBI, ICAAP to be an Integral part of the Management and Decision-Making Culture, The Principle of Proportionality, Regular Independent Review and Validation, ICAAP to be a Forward-Looking Process, ICAAP to Include Stress Tests and Scenario Analyses, Identifying and Measuring Material Risks in ICAAP, Capital Planning, Capital AllocationStress Testing
Stress Testing Part of ICAAP, Objective, Stress Testing Process, Sensitivity Analyses, Scenario Analyses, Reverse Stress Testing, Stress Testing Framework, Single Factor Stress Tests, Classification of Banks for the Purpose of Stress Testing, Prompt Corrective Action (PCA) Framework for Scheduled Commercial Banks, Criteria for PCAMarket Discipline
General, Definition, Achieving Appropriate Disclosure, Interaction with Accounting Disclosures, Validation, Materiality, Proprietary and Confidential Information, General Disclosure Principle, Regulatory Disclosure SectionBasel III Buffers, Liquidity Ratios, Leverage Ratio
Objectives of Capital Buffers, Capital Conservation Buffer Framework, Counter - Cyclical Capital Buffer, Domestic Systemically Important Banks, Leverage Ratio, Liquidity Standards, Net Stable Funding RatioRisk Based Supervision
Background, Reserve Bank of India Initiatives, Bank Supervision Process in India, Supervisory Approach, Features of an Effective bank Supervisory Framework, Benefits of Risk Based Supervision, Supervisory Methods/ToolsRisk Based Internal Audit
What is Risk Based Auditing, Objective of Risk Based Internal Audit, Board and Management Oversight, Audit Policy, Functional Independence, Identification of Auditable Units, Conduct Risk Assessment, Risk Profile, CommunicationMODULE F: DERIVATIVES AND RISK MANAGEMENT
Derivatives and Risk Management
What is Derivative?, Features of Derivatives, Over the Counter vs Exchange Traded Derivative, Uses of Derivatives, Misuse of Derivative, Major Types of Derivatives, Long and Short Position, Derivative Markets in IndiaForward Contract
Definition and Characteristics, Advantage of Entering Forward Contract, Problems Associated with Forward Contract, Pay-off on a Forward Contract, Pricing the Underlying, Benefits and Costs of Holding Assets, The Concept of Price and Value of a Forward Contract, Forward Rate AgreementFutures
What is a Futures Contract?, Futures Contract vs Forward Contract, Performance of contract, The Clearing House, Margin A/c, Relationship between Spot Price and Future Price, Delivery, Cash Settlement, Pricing of Future Contracts, Contango vs Normal Backwardation, Interest Rate FutureOptions
Definition, Option Terminology, Call Option, Put Option, Pricing of Option, Interest Rate OptionsSWAP
Definition, Characteristics of SWAP, SWAP Terminology, Types of SWAP, Interest Rate Swap, Calculating Interest Rate Swap Cash Flows, Uses of Interest Rate Swap, SwaptionsCAIIB Risk Management Exam Pattern 2026
CAIIB Risk Management is an elective paper for banking professionals aiming to deepen expertise in handling credit, market, and operational risks in 2026 exams.
The exam follows IIBF's standard pattern across elective subjects, focusing on practical risk frameworks relevant to modern banking challenges.
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CAIIB Risk Management Exam Pattern 2026 |
|
|---|---|
|
Aspect |
Details |
|
Total Questions |
100 MCQs |
|
Total Marks |
100 |
|
Duration |
120 minutes (2 hours) |
|
Negative Marking |
No penalty |
|
Qualifying Marks |
50 for General; 45 for SC/ST/PwD |
|
Modules Covered |
A: Risk Overview; B: Credit Risk; C: Operational Risk; D: Market Risk; E: Risk Policy |
CAIIB Risk Management Syllabus 2026 FAQs
Q1. Where can I get the CAIIB Risk Management Syllabus 2026?
Ans. The detailed CAIIB Risk Management Syllabus 2026 are provided in the article.
Q2. How can I benefit from CAIIB certification?
Ans. CAIIB certification offers benefits to banking professionals, including additional increments in their career progression. It's a prestigious recognition within the banking industry and can open up opportunities for growth and advancement.
Q3. What it the CAIIB Risk Management Exam Pattern 2026?
Ans. CAIIB Risk Management Exam Pattern 2026 are provided in the article for the Risk Management Elective Paper.
Q4. What are the elective papers in CAIIB Syllabus?
Ans. The elective papers in CAIIB Syllabus are Rural Banking, Human Resources Management, Risk Management, Central Banking, and Information Technology and Digital Banking. Out of the given elective papers, the banking and financial sector employees have to choose one.
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