INDIAN INSTITUTE OF BANKING & FINANCE

(An ISO 9001 - 2008 CERTIFIED ORGANISATION)

Kohinoor City, Commercial-II, Tower-1, 2nd Floor, Kirol Road, Kurla (West), Mumbai - 400 070
Web-site : www.iibf.org.in

Certificate Examination in Risk in Financial Services

Rules & Syllabus 2018

Introduction :
The Certificate examination in Risk in Financial Services is offered in collaboration
with Chartered Institute for Securities & Investment (CISI), London.
Objective :
The objective of the course is to enable bankers to gain expertise in the area of
Risk Management in Financial Services.
Structure :
‘Risk in Financial Services’ is open to Members and Non-members. The
examination has two parts-one covering Indian scenario and the other dealing with
the international scenario. This certificate examination is offered in collaboration
with Chartered Institute for Securities & Investment (CISI), London. First part of
examination is conducted by IIBF and the second part is conducted by CISI.
Candidates who complete both the parts are awarded a joint certificate.
Course has two levels :
Level - I :
a) Two hour examination with 40 to 60 hours of study, covering Indian scenario on
Risk Management (Indian Perspective)
b) On completion of the above examination, candidates have to undergo Training for 3
days at pre-announced centres.
Level - II :
Candidates who have passed the Level-I can apply for Level-II examination of CISI.
i.e. Risk in Financial Services Two hour examination for 100 study hours. Dealing
with the International scenario.
Institute will issue a certificate after completing Level-I of the course, which
would include the online examination and training. In addition to this,
candidates who complete Level-II will be awarded a joint certificate by the
Institute and CISI.
Examinations :
Level - I examination will be held in online mode at half yearly intervals on the pre-
announced dates. List of examination centres will be available on the website.
(Institute will conduct examination in those centres where there are 20 or more
candidates)
Level - II examinations will be held in online mode only at 8 centres throughout the
year (excluding Saturdays / Sundays). Candidates will have to make it convenient
to appear the Level - II examination at any one of the 8 centres.
Target group :
Employees of banks and financial institutions.

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Eligibility :
1.
Members and Non-Members of the Institute
Candidates must have passed the 12th standard examination in any
2.
discipline or its equivalent.
Exemption from Level-I Examination :
Members of IIBF who have passed 1) DTIRM examination or 2) CAIIB with elective
subject 'Risk Management' or 3) CAIIB holders who have passed Certificate in Risk
Management as separate Elective are eligible to take Level-II examination directly
without passing Level-I examination. However they are required to register for the
Level-I examination by paying the requisite fees plus applicable taxes to be eligible
to apply for exemption.
Candidates who are eligible for exemption as per the above criteria are required to
1) Apply for the examination by paying the requisite fee plus applicable taxes and
2) Send immediately a separate written request for granting exemption along with
a) Copy of the acknowledgement received while applying for examination and b)
copy of the Result Advice / Final certificate of the above examination/s passed to
Examination Corporate Office of the Institute so as to reach the same before the
last date for applying for examination. Requests received for exemption after the
last date for applying for the examination will not be considered for granting
exemption.
Offices after the last date for applying for the examination will not be considered for
granting exemption.
Subject of Examination (Level - I) :
Risk Management
PASSING CRITERIA:
Minimum marks for pass in the subject is 50 out of 100.
Examination / Training Fees :
Sr. Particulars Examination Training Total
No. Fee Fee** Examination
+ Training Fee
1. Virtual training mode Rs.6,000/- Nil Rs.6,000/-
plus GST plus GST
2. Physical classroom training mode Rs.6,000/- Rs.5,000/- Rs.11,000/-
at Mumbai, Delhi, Chennai and plus GST plus GST plus GST
Kolkata centres
3. Physical classroom training mode Rs.6,000/- Rs.9,000/- Rs.15,000/-
at other centres plus GST plus GST plus GST
Please Note : Candidates are required to Register for every attempt separately.
The fee once paid will NOT be refunded or adjusted on any account.
** Training fees are to be paid after the candidate clears the online examination
conducted by the Institute.
- Candidates, who do not pass the online examination in their first attempt, need to
enrol for the second attempt by paying a nominal fee of Rs.200.
- Candidates who do not pass the online examination in their second attempt, need
to enrol again by paying a fee of Rs.6,000/-.
- If a candidate fails in the virtual classroom training, he/she can enrol for the second
attempt by paying a fee of Rs.1,000/- plus GST.

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Medium of Examination :
Examination will be conducted in English only
Pattern of Examination :
(i) Question Paper will contain approximately 100 objective type multiple choice
questions for a total of 100 marks including questions based on case studies /
case-lets. The Institute may however verified number of questions to be asked
for a subject.
(ii) The examination will be held in Online Mode only
(iii) There will NOT be negative marking for wrong answers.
DURATION OF EXAMINATION:
The duration of the examination will be of 2 hours.
PERIODICITY AND EXAMINATION CENTRES:
a) Examination will be conducted on pre-announced dates published on IIBF Web
Site. Institute conducts examination on half yearly basis, however periodicity of
the examination may be changed depending upon the requirement of banking
industry.
b) List of Examination centers will be available on the website. (Institute will conduct
examination in those centers where there are 20 or more candidates.)
PROCEDURE FOR APPLYING FOR EXAMINATION
Application for examination should be registered online from the Institute’s website
www.iibf.org.in. The schedule of examination and dates for registration will be
published on IIBF website.
Time Limit for Training :
Training is required to be completed within 15 months from the date of declaration
of the online examination results of Level-I in which the candidate passes.
In case a candidate fails to complete the training either on account of not able to
successfully complete the training or by not attending the training within the
stipulated period of 15 months, the candidate would be required to RE-ENROLL
himself for the Online examination foregoing credit for the subject/s passed in the
Online examination earlier in case he wants to complete the course.
STUDY MATERIAL / COURSEWARE
The Institute has developed a courseware to cover the syllabus. The courseware
(book) for the subject/s will be available at outlets of publisher/s. Please visit IIBF website
www.iibf.org.in under the menu “Exam Related” for details of book/s and address of
publisher/s outlets. Candidates are advised to make full use of the courseware. However,
as banking and finance fields are dynamic, rules and regulations witness rapid changes.
Therefore, the courseware should not be considered as the only source of information
while preparing for the examinations. Candidates are advised to go through the updates
put on the IIBF website from time to time and go through Master Circulars / Master
Directions issued by RBI and publications of IIBF like IIBF Vision, Bank Quest, etc. All
these sources are important from the examination point of view. Candidates are also to
visit the websites of organizations like RBI, SEBI, BIS, IRDAI, FEDAI etc. besides going
through other books & publications covering the subject / exam concerned etc. Questions
based on current developments relating to the subject / exam may also be asked.
Cut-off Date of Guidelines / Important Developments for Examinations
The Institute has a practice of asking questions in each exam about the recent
developments / guidelines issued by the regulator(s) in order to test if the candidates
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keep themselves abreast of the current developments. However, there could be
changes in the developments / guidelines from the date the question papers are
prepared and the dates of the actual examinations.
In order to address these issues effectively, it has been decided that:
(i) In respect of the examinations to be conducted by the Institute for the period
February to July of a calendar year, instructions / guidelines issued by the
regulator(s) and important developments in banking and finance up to 31st
December will only be considered for the purpose of inclusion in the question
papers".
(ii) In respect of the examinations to be conducted by the Institute for the period
August to January of a calendar year, instructions / guidelines issued by the
regulator(s) and important developments in banking and finance up to 30th
June will only be considered for the purpose of inclusion in the question papers.
The table given below further clarifies the situation.

Particulars Cut-off Date of Guidelines / Important

Developments for Examination/s Developments for Examination/s
For the examinations to be conducted by 31st December 2017
the Institute for the period February 2018
to July 2018
For the examinations to be conducted by 30th June 2018
the Institute for the period August 2018 to
January 2019

TUTORIAL / CONTACT PROGRAMMES

Tutorial / Contact programmes may be organized by the Institute at various centres. For
details in this regard candidates may visit Institute's website www.iibf.org.in.
SYLLABUS
The details of the prescribed syllabus which is indicative are furnished in the booklet.
However, keeping in view the professional nature of examinations, all matters falling
within the realm of the subject concerned will have to be studied by the candidate as
questions can be asked on all relevant matters under the subject.
Candidates appearing for the examination should particularly prepare themselves for
answering questions that may be asked on the latest developments taking place under
the various subject/s of the said examination although those topics may not have been
specifically included in the syllabus. The Institute also reserves to itself the right to vary
the syllabus / rules / fee structure from time to time. Any alterations made will be notified
from time to time. Further, questions based on current developments in banking and
finance may be asked.
Candidates are advised to refer to financial news papers / periodicals more
particularly “IIBF VISION” and “BANK QUEST” published by the Institute.
Paper - 1 : Risk Management
Module - A : An overview
a) Risk - definition, policies
- Risk Process-Risk Organization
- Key risks-Credit risk, market risk, operational risk, liquidity risk, legal risk,
interest rate risk and currency risk
b) Asset Liability Management
- ALM Concept

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 - ALM Organization
- ALCO techniques / tools
- Simulation, Gap, Duration analysis, Linear and other statistical methods
of control
c) Risk Measurement & Control
- Calculation
- Risk exposure analysis
- Risk management / mitigation policy
- Risk immunization policy / strategy for fixing exposure limits
- Risk management policy and procedure
- Risk adjusted return on capital
d) Risk management
- Capital adequacy norms
- Prudential norms
- Exposure norms
- Concept of Mid office
- Forwards
- Futures
- Options
- Strategies and Arbitrage opportunities
- Regulatory prescriptions of risk management
Module - B : Credit Risk Management
- Introduction
- BASEL Norms
- Three pillars of BASEL Norms and Capital for Operational risk
- Frame work for risk management
- RBI guidelines on risk management
- Risk rating and risk pricing
- Methods for estimating capital requirements
- Credit risk - standardized approach
- Credit risk - advanced approach
- Credit rating / credit scoring and rating system design
- Credit Bureaus
- Stress test and sensitivity analysis
- Internal Capital Adequacy Assessment Process (ICAAP)
- Introduction to structured products
Module - C : Operational Risk
- Introduction, BASEL Norms
- RBI guidelines
- Likely forms of operational risk and causes for significant increase in
operational risk
- Sound Principles of Operational Risk Management (SPOR)
- SPOR - organizational set up and key responsibilities of ORM

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 - SPOR - policy requirements and strategic approach for ORM
- SPOR identification, measurement, control / mitigation of operational risks
- Capital allocation for operational risk, methodology, qualifying criteria for
banks for the adoption of the methods
- Computation of capital charge for operational risk
Module - D : Market Risk
- Introduction and definition
- Prescriptions of BASEL Norms
- Liquidity risk
- Interest rate risk
- Foreign exchange risk
- Price risk (Equity)
- Commodity risk
- Treatment of market risk under Basel
a) Standardized duration method
b) Internal measurement approach - VaR
Basel-III guidelines
- Risk Management Policy - ALCO structure and functions.
Rules / Syllabus for Level - II Examination (CISI, London)
As regards Paper 2 (Level - II) Examination the rules / syllabus, courseware,
venue and other details will be provided directly by CISI, London to all the enrolled
candidates for the Paper 2 examination, after passing the Level - I as stipulated
earlier. The general information regarding rules / syllabus as provided by CISI is
reproduced here which is subject to changes as per their rules / syllabus of CISI.
Subject of Examination (Level - II) :
Paper - 2 : Risk in Financial Services
Registration / Examination Fees :

(For Members of IIBF under the collaboration arrangement)

1st attempt £110 (Including Registration fee)
2nd attempt £60 (During the continuation of the syllabus)
Subsequent attempt/s as per the rules of CISI.

Candidates who have registered for Level-II CISI examination and wish
to reschedule the examination are allowed 1 free reschedule, provided they inform
CISI, 14 days prior to the exam date. Any further rescheduling will be charged as
per CISI rules.
Pattern of Question Paper for Level - II :
Paper-2 Question Paper will contain 100 multiple-choice objective type questions
for 100 marks.
Mode and Centres for Examination :
Examination will be conducted in online mode only at Prometric test centres
currently in 8 cities viz., Mumbai, Chennai, Bangalore, Kolkatta, Hyderabad,
Gurgaon, Ahmedabad and Thiruvananthapuram.

6
Duration of Examination :
Paper 2 - Examination will be of 2 hour duration.
Periodicity of Examination:
The Examination is conducted throughout the year except Saturday and Sunday.
Passing criteria :
Passing marks for paper- 2 subject is 70%
Delivery :
The program is delivered through soft copy of study material in PDF format.
Syllabus for examination – Level - II Paper - 2 : Risk in Financial Services
1. Principles of Risk Management
2. International Risk Regulation
3. Operational Risk
4. Credit Risk
5. Market Risk
6. Investment Risk
7. Liquidity Risk
8. Corporate Governance and Risk Oversight
9. Model Risk
10. Enterprise Risk Management (ERM) -
(Supported by specially designed courseware which is supplied by e-copy to all
enrolled candidates as part of the fee by CISI directly)
PROCEDURE FOR APPLYING FOR EXAMINATION (Level - II) :
IIBF will provide a list of candidates, who have passed the Level - I examination /
granted exemption based on prior qualification and eligible to apply for Level - II
examination to CISI periodically. CISI will inform those candidates directly the
procedure / guidance for the registration for Level - II examination. Candidates
can also contact CISI for guidance on the contact no. and e-mail provided on the
trailing pages under course structure and delivery, if needed.
For further information / Registration (CISI)
The CISI Indian Liaison Office
[email protected] Tel. : 022 - 4221 9400
804 - Meadows, Sahar Plaza, Near JB Nagar Metro station, Andheri - Kurla Road,
Andheri (East), Mumbai - 400 059, India.
About CISI, London
The Chartered Institute for Securities & Investment (CISI) is the largest and most
widely respected professional body for those who work in the securities and
investment industry in UK and in a growing number of financial centers globally.
Evolved from the London Stock Exchange they now have more than 40,000 members
in 89 countries. In the past year, they have offered examination to 39,000 candidates
in 68 countries, covering a range of vocational qualifications. Web Site : www.cisi.org
IMPORTANT RULES / INFORMATION FOR CANDIDATES
1. ADMIT LETTER OF EXAMINATIONS :
a. While registering for the examination / course candidates will have
provision to choose venue and examination time slot of his/her choice for
each subject as per their preference on first-cum-first-serve basis.

7
 b. Candidates are required to take utmost care and precaution in
selecting Centre, Venue and Time slot, as there is no provision to
change the Centre, Venue and Time slot in the system. Hence no
request for change of centre, venue and time slot will be entertained
for any reason.
c. After successful registration of examination, real time admit letter will be
generated for the candidate/s. Candidate/s will be able to save,
download and print admit letter. Admit letters will also the emailed to
the candidates in their email id registered with the Institute.
d. Admit letter will be hosted on Institute's website www.iibf.org.in
e. For downloading and printing of admit letter from the above mentioned
website, candidates will have to enter the following:
i. Membership or registration number as login id
ii. Edit profile password.
iii. If candidates do not remember their Edit profile password, they have
to click on the 'Forgot password / Get Password' button after entering
the Membership or Registration number. On clicking fresh edit profile
password will be sent to their registered email id.
f. Candidates are required to produce printed copy of admit letter along with
Membership identity card or any other valid photo ID card (Aadhaar card /
Employer's card / PAN Card / Driving License / Election voter's card /
Passport etc.) at the examination venue.
g. In the absence of printed copy of Admit Letter and Photo Identity
Card, candidates will be denied permission to write Examination.
2. Mobile Phones
a. Mobile phones and other electronic / smart gadgets (except calculator as
permissible) are not allowed in the examination hall. It is clarified that mere
possession of mobile phone and other electronic / smart gadgets in the
examination hall whether in switch off mode or silent mode shall also be
deemed to be resorting to adoption of unfair means in the examination.
3. Use of calculator
a. Candidates will be allowed to use battery operated portable calculator in the
examination. The calculator can be of any type up to 6 functions, 12 digits.
b. Attempt to use any other type of calculator not complying with the
specifications indicated above or having more features than mentioned
above shall tantamount to use of unfair means. Scientific calculator is not
allowed.
4. Other Rules / Information
a. Candidates should ensure that they sign the Attendance Sheet.
b. Candidates are advised to reach the Examination Venue before the
reporting time mentioned in the admit letter. No candidate/s will be
permitted to enter the Examination Venue after the gate closing time
mentioned in the admit letter.
c. No candidate will be permitted to leave the examination venue in the first
60 minutes from the scheduled start time of the examination.
d. Candidates would be able to login to the system only with the password
mentioned in this Admit Letter. This password should not be disclosed to
others. Keep it safe to avoid the possible misuse.
8
 e. If the examination could not commence on scheduled time or there is
delay due to Failure of power, Technical snag of whatsoever nature or for
any such reason having bearing upon the conduct of examination;
candidates have to :-
i. Wait till resumption of power supply / solving of technical snag.
ii. Take-up the examination at other venue arranged by the examination
conducting authority.
iii. Follow instructions given by the examination conducting authority.
f. Candidates are required to strictly follow all the instructions given by the
examination conducting authority during the examination and adhere to
Rules of the examination.
g. Violation of any of the Rules / Instructions, misuse of the Admit Letter will
be considered to be an act of serious misconduct and the Institute will take
action as per the Rules of the examination, which will also be reported to
the employer of the candidate.
5. Rules, Penalities for Misconduct / Unfair Practices :
a. Communication of any sort between candidates or with outsiders is not
permitted and complete silence should be maintained during the
examination.
b. Copying answers from other candidates / other printed / Electronic
material or permitting others to copy or consultation of any kind will attract
the rules relating to unfair practices in the examination.
c. No candidate shall impersonate others or allow others to impersonate
himself / herself at the examination.
d. No candidate shall misbehave / argue with the Examination Conducting
Authorities at the centre.
e. Candidates have to compulsory return any papers given including that
given for rough work to invigilator.
f. Candidates should not possess and / or use books, notes, periodicals, etc.
in the examination hall at the time of examination / or use mathematical
tables, slide rules, stencils etc. during the examination.
If any candidate violates any of the above rules, it will be considered to be an act
of misconduct and he/she will be liable for punishment.
PLEASE REFER INSTITUTE'S WEBSITE UNDER THE MENU “EXAM
RELATED” FOR DETAILS OF DEBARMENT PERIOD FOR UNFAIR
PRACTICES ADOPTED BY CANDIDATES DURING CONDUCT OF
INSTITUTE'S EXAMINATIONS.
6. Result Advice / Consolidated Marksheet / Final Certificate
a. Result Advice of candidates will be hosted on Institute's website on
declaration of result, which can be downloaded by the candidates.
b. Consolidated mark sheet for candidates completing examination having
more than one subject, will be available on the Institute's website after the
declaration of results. Candidates can download the same after entering
login credentials using their membership number and edit profile
password.
c. Final certificates will be sent by speed post within 2 months after the
declaration of result.

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Multiple Choice Questions (MCQs) and Answers
“The Institute conducts its examinations through Multiple Choice Questions
(MCQs). These MCQs are part of the Question Bank of the Institute and its
Intellectual Property. As a matter of policy, these MCQs and their answers will not
be shared by the Institute with the candidates or others and no correspondence in
this regard will be entertained."
CONTACT DETAILS :
Register your queries through website www.iibf.org.in > Members / Candidates
Support
Services
(Help) or
Email all your queries to [email protected]
Member Support Service Office :
Indian Institute of Banking & Finance
191-F, Maker Towers, 19th Floor,
Cuffe Parade, Mumbai - 400 005
Tel. : 022-2218 3302 / 2218 5134
For training / contact classes related queries contact :
Leadership Centre
Indian Institute of Banking & Finance
Kohinoor City, Commercial-II, Tower-I, 3rd Floor,
Kirol Road, Off L.B.S.Marg, Kurla West, Mumbai 400 070.
Tel. : 022 25039746 / 9604 / 9907
E-mail : [email protected]
PROFESSIONAL DEVELOPMENT CENTRES :

South Zone North Zone East Zone

Indian Institute of Banking & Indian Institute of Banking & Indian Institute of Banking &
Finance Finance Finance
No. 94, Jawaharlal Nehru Road, 102-113, Vikrant Towers, Hindusthan Building (Annexe),
(100 Feet Road), Opp. Hotel 1st Floor, 4 Rajendra Place, 7th Floor, 4, C. R. Avenue,
Ambica Empire, Vadapalani, New Delhi – 110 008. Kolkatta – 700 072.
Chennai – 600 026. Tel. : 011-2575 2191 / 92 Tel. : 033-2212 4992
Tel. : 044-2472 2990 / 2472 8587 E-mail : [email protected] E-mail : [email protected]
E-mail : [email protected]

Corporate Office : Indian Institute of Banking & Finance, Kohinoor City,

Commercial-II, Tower-1, 2nd Floor, Kirol Road, Kurla (West), Mumbai - 400 070
Tel. : 022-2503 9746 / 9604 / 9907