CAIIB Risk Management Important Topics, Module-wise Weightage

The CAIIB (Certified Associate of Indian Institute of Bankers) is a prestigious professional banking exam conducted by the Indian Institute of Banking & Finance (IIBF). Among its elective papers, Risk Management is a critical choice for bankers focused on credit, market, operational, and treasury risks, along with regulatory compliance and financial risk mitigation strategies.

In this blog, we provide the most important topics for the Risk Management elective paper, module-wise breakdown, estimated weightage, and preparation insights based on past trends and IIBF examination patterns.

CAIIB Risk Management Important Topics

The module-wise breakdown of important topics is as follows:

Module	Important Topics
Module A – Risk & Risk Management Framework	1. Overview of Risk & Types of Risks (Credit, Market, Operational, Liquidity, etc.) 2. Why Banks are Special – Unique Risk Profile of Banks 3. Risk Management Framework at Banks 4. Asset-Liability Management (ALM) 5. Interest Rate Risk on Banking Book 6. Liquidity Risk Management 7. Organizational Structure & Governance in Risk Management (Board, ALCO, Committees)
Module B – Credit Risk Management	8. Credit Risk Framework & Policies 9. Obligor & Borrower Risk Analysis 10. Credit Rating Systems & RBI Guidelines 11. Portfolio Risk Management 12. Credit Risk Measurement Models 13. Credit Derivatives and Risk Mitigation Tools
Module C – Market Risk	14. Introduction to Market Risk 15. Fixed Income Securities & Interest Rate Risk 16. Measurement Tools: Value at Risk (VaR), Duration 17. Trading vs Banking Book Risks 18. Hedging Strategies using Derivatives
Module D – Operational Risk	19. Operational Risk & Management Framework 20. Internal & External Loss Data Collection 21. Risk & Control Self-Assessment (RCSA) 22. Key Risk Indicators (KRIs) 23. Technology Risk, Corporate Governance, Climate Risk & Sustainable Finance
Module E – Basel & RBI Guidelines	24. Need for Banking Regulations & Post-Crisis Reforms 25. Basel Framework: Basel I, II & III 26. Pillars of Basel – Minimum Capital, Supervisory Review, Market Discipline 27. Regulatory Capital & Capital Allocation (Tier 1, 2, 3) 28. Stress Testing & PCA Framework 29. Risk-Based Supervision & Internal Audit
Module F – Derivatives & Risk Management	30. Usage of Derivatives in Risk Mitigation 31. Forward Contracts, Futures, Options, Swaps 32. Hedging Market, Credit, and Treasury Risks

Also Check: Which Elective Paper to Choose for CAIIB

CAIIB Risk Management Module-wise Weightage

Based on past exams and expert insights, the estimated weightage of modules is:

Module	Estimated Weightage (%)
Module A	15–20
Module B	25–30
Module C	15–20
Module D	15–20
Module E	15–20
Module F	5–10

CAIIB Risk Management Exam Structure

The Risk Management elective is conducted online by IIBF and consists of multiple-choice questions, scenario-based questions, and some numerical-based questions.

Feature	Details
Total Questions	100 objective-type MCQs
Total Marks	100
Case-Based Questions	Includes scenarios from banking operations & risk mitigation
Numerical Questions	Limited, mainly from credit, market, and ALM calculations
Exam Mode	Online (Computer-Based Test)
Negative Marking	No negative marking
Exam Language	English / Hindi

Preparation Strategy for Risk Management Elective

Risk Management requires both conceptual clarity and practical understanding of banking risks, regulatory frameworks, and risk mitigation tools.

1. Focus on High-Weightage Modules: Prioritize Credit Risk (Module B) and Market Risk (Module C) for maximum scoring.
2. Understand Regulatory Guidelines: Prepare thoroughly for Basel & RBI norms, stress testing, capital allocation, and supervisory review processes.
3. Operational Risk & Governance: Emphasize RCSA, KRIs, internal/external loss data, corporate governance, and sustainable finance frameworks.
4. Derivatives for Risk Mitigation: Learn applications of forwards, futures, options, and swaps in hedging credit, market, and treasury risks.
5. Integrate BFM Knowledge: If you have studied Banking & Financial Management (BFM), link treasury and ALM modules with Risk Management concepts for a dual benefit.
6. Practice Case Studies & MCQs: Apply theory to practical banking scenarios. Focus on past exam trends and question framing from Macmillan book references.
7. Revise Regularly: Consolidate key risk frameworks, measurement tools, and regulatory guidelines.

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