The CAIIB Risk Management paper is for banking professionals who want to strengthen their understanding of various risks in the banking sector and learn effective ways to manage them. This syllabus covers key areas such as credit risk, market risk, operational risk, and liquidity risk, along with regulatory guidelines and risk mitigation strategies.
By studying this paper, candidates can enhance their decision-making skills, improve risk assessment capabilities, and contribute to safer and more efficient banking operations. It is ideal for those looking to develop expertise in risk management and advance their career in the banking industry. In this blog, we have provided all the details related to the CAIIB Elective Paper 4 Risk Management module wise syllabus, and exam pattern.
What is the CAIIB Elective Paper 4 Risk Management syllabus?
The CAIIB Elective Paper 4 Risk Management syllabus, issued by the Indian Institute of Banking & Finance (IIBF), is designed to help banking professionals understand the different types of risks faced by banks and how to manage them in a structured way.
The syllabus covers key areas such as credit risk, market risk, operational risk, and liquidity risk. It also includes Basel norms, guidelines of the Reserve Bank of India (RBI), derivatives, asset liability management (ALM), and basic statistical concepts used in risk measurement.
Overall, this paper helps professionals improve their risk assessment skills, make better financial decisions, and support safe and stable banking operations. It is especially useful for those who want to build strong knowledge in risk management and grow in their banking career.
What is the IIBF CAIIB elective paper pattern?
The CAIIB elective paper 4 consists of 100 questions, for a total of 100 marks, with no negative marking for incorrect answers, or answers that were not being attempted. The details CAIIB exam pattern are as follows:
| Subject | No. of Questions | Total Marks | Duration |
| Elective Paper 4 Risk Management | 100 | 100 | 2 hours |
Also: Check out the detailed CAIIB Syllabus 2026
What are the topics covered in the CAIIB paper Risk Management?
The CAIIB Paper 4 elective paper, Risk Management syllabus consists of 7 modules, from which 100 questions are asked. The module-wise details are as follows:
- Module A: Risk and Risk Management Framework
- Module B: Credit Risk
- Module C: Market Risk
- Module D: Operational Risk
- Module E: Basel and RBI Guidelines on Risk Management
- Module F: Derivatives and Risk Management
- Appendix: Statistical Concepts
What topics are covered in module A of CAIIB elective paper Risk Management?
The details of the CAIIB elective paper 4 Module A Risk and Risk Management Framework syllabus are as follows:
| Topic | Details |
| Why Banks are Special | – Functions banks perform – Bank’s role in the economy – Other uniqueness of banks |
| Risks 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 in 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 risks |
| Risk Management Framework | – Lessons from crisis – Benefits of risk management – Risk management concept and approach – Risk culture – Risk management architecture – Elements of risk management framework – Organizational structure – Risk management policy – Risk appetite – Risk limits – Risk identification process – Risk measurement – Risk mitigation – Risk monitoring and control – Management information system (MIS) – Enterprise risk management (ERM) – Events – risk and opportunity – Components and effectiveness of ERM – Relationship with internal control |
| Asset 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 mitigation |
| Liquidity Risk Management | – What is liquidity? – Liquidity vs 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 risk |
Check: CAIIB Exam Date 2026
What topics are covered in Module B of the CAIIB Elective Paper on Risk Management?
The details of the CAIIB elective paper 4 Module B Credit Risk syllabus are as follows:
| Topic | Subtopics |
| Credit Risk Management Framework | – What is credit risk? – Obligor/Borrower level vs portfolio risk – Systematic vs unsystematic risk – Need for credit risk management framework – Credit risk culture – Building blocks of credit risk management – Strategy and 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 structure |
| Obligor/Borrower Risk | – Business/Operating risk – Financial risk – Interaction between business and financial risk – Different risk levels – Sources of external risk – Industry risk analysis – Entity level risk |
| Credit Rating System | – What is credit rating? – Usefulness for banks – Features of internal credit rating system – Rating exercise and assignment – Rating by external agencies |
| Portfolio Credit Risk | – Systematic risk – Unsystematic/idiosyncratic/diversifiable risk – Concentration risk – Correlation risks |
| Credit Risk Models | – Uses of credit models – Types of models |
| Measurement of Credit Risk | – Probability of Default (PD) & estimation methods – Exposure at Default (EAD) – Loss Given Default (LGD) – Portfolio assessment of credit risk – Risk Adjusted Return on Capital (RAROC) – Economic capital application in RAROC – Risk-based pricing methods |
| Credit Derivatives | – What is a credit derivative? – Protection buyer and seller – Advantages to buyer and seller – Credit events & payout – Credit default swap (CDS) – Total return swap (TRS) – Credit options – Credit-linked notes |
Check: CAIIB Study Material
What topics are covered in module C of CAIIB elective paper Risk Management?
The details of the CAIIB elective paper 4 Module C Market Risk syllabus are as follows:
| Topic | Details |
| Market Risk | – What is market risk? – Trading portfolio in a bank – Interest rate risk, equity price risk, FX risk, commodity price risk – Liquidity, credit, and counterparty risk – Model risk – Market risk management framework – Organizational structure for market and trading risk – Risk management strategy, policies, and procedures |
| Fixed Income Securities | – What is a bond? – Government of India in bond market – Bond market in India – Bond valuation |
| Measurement of Interest Rate Risk | – Sensitivity approach – Price value of a basis point (PVBP) – Portfolio PVBP computation – Hedging using PVBP – Duration: definition, properties, modified duration, price elasticity – Convexity – Bond portfolio management |
| Value at Risk (VaR) | – Historical background – Definition and assumptions – Building blocks and methodologies – Comparison of methodologies – Limitations of VaR – Extreme value theory – Stress testing and backtesting of VaR models |
Also Check: How to Choose the Right Elective Paper
What topics are covered in Module D of the CAIIB Elective Paper on Risk Management?
The details of the CAIIB elective paper 4 Module D Operational Risk syllabus are as follows:
| Topic | Details |
| Operational Risk and Framework | – Developments leading to operational risk – Peculiarity of operational risk – Definition – Operational risk culture – Organizational framework – Policy guidelines & strategic approach – Risk identification and assessment – Collection of internal & external loss data |
| RCSA & Key Risk Indicator (KRI) | – RCSA process – Defining inherent risk – Study of effectiveness of control – Computation of risk zone – Color-coded risk levels – KRI selection and uses – Scenario analysis – Risk appetite |
| Technology Risk | – Principles of information security – Governance, roles & responsibilities – Critical components – Malware security, patch management, change management – Audit trails, reporting, network security, remote access – DDoS attacks – ISO 27001 implementation – Wireless security – Business continuity considerations – Electronic banking & cyber frauds – Emerging technologies |
| Corporate Governance | – Definition & banking perspective – Basel Committee & governance – Importance in risk management – Benchmarking risk governance |
| Climate Risk & Sustainable Finance | – Climate situation in India – Basel Committee guidelines – Characteristics of climate risk – Financial risks from climate change – Climate risk management framework – Green finance for sustainable development |
What topics are covered in module E of CAIIB elective paper Risk Management?
The details of the CAIIB elective paper 4 Module E Basel and RBI Guidelines on Risk Management syllabus are as follows:
| Topic | Details |
| Need for Regulation | – Why banks need regulation – Banking regulation & supervision in India – Global banking regulation – Basel Committee on Banking Supervision – Basel I & II accords |
| Global Financial Crisis & Basel III | – Regulatory shortcomings & reforms – Basel III response to global crisis |
| Regulatory Capital & Capital Adequacy | – Bank capital & accounting – Minimum capital requirements – Basel III capital regulation – Standardized approach for credit risk & off-balance sheet items – Internal rating-based approach |
| Capital Allocation Against Market Risk | – Scope & coverage of capital charge – Measurement for interest rate risk |
| Capital Charge for Operational Risk | – Definition, measurement methodologies – Basic, standardized, advanced approaches – Business indicators & risk-weighted assets |
| Supervisory Review & ICAAP | – Pillar 2 objectives – ICAAP principles & coverage – Risk appetite & structure – Risk identification, measurement, monitoring, reporting – Internal control & board reporting – Stress tests & scenario analysis |
| Stress Testing | – ICAAP stress testing framework – Sensitivity, scenario & reverse stress tests – Single factor stress tests – PCA framework for banks |
| Market Discipline & Basel III Buffers | – Disclosure principles – Capital conservation buffer – Counter-cyclical buffer – Domestic systemically important banks – Leverage ratio, liquidity standards, NSFR |
| Risk-Based Supervision & Audit | – RBI initiatives – Supervisory process & approach – Risk-based internal audit, objectives, audit policy, functional independence, risk profiling |
The CAIIB May-June registration starts from 4th March 2026
What topics are covered in Module F of the CAIIB Elective Paper on Risk Management?
The details of the CAIIB elective paper 4 Module F Derivatives and Risk Mangement syllabus are as follows:
| Topic | Details |
| Derivatives Overview | – What is a derivative? – Features – OTC vs exchange-traded derivatives – Uses & misuse – Major types – Long & short positions – Derivative markets in India |
| Forward Contract | – Definition & characteristics – Advantages & problems – Pay-off – Pricing & valuation – Forward rate agreement |
| Futures | – Definition & difference from forwards – Performance & clearing – Margin account – Spot-future relationship – Delivery & cash settlement – Pricing, contango & backwardation – Interest rate futures |
| Options | – Definition & terminology – Call & put options – Pricing methods – Interest rate options |
| SWAP | – Definition, characteristics, terminology – Types of swap, interest rate swap – Calculating cash flows – Uses of interest rate swap – Swaptions |
Also Download :
| CAIIB Previous Year Papers | Download Link |
| Paper 1 (ABM) | Download PDF |
| Paper 2 (BFM) | Download PDF |
| Paper 3 (ABFM) | Download PDF |
| Paper 4 (BRBL) | Download PDF |
What topics are covered in module G of CAIIB elective paper Risk Management?
The details of the CAIIB Elective Paper 4, Module G, termed as Appendix: Statistical Concepts syllabus, are as follows:
| Topic | Details |
| Statistical Measures | – Frequency distribution – Measures of central tendency & dispersion – Skewness & kurtosis – Correlation & regression – Expected return & average ratios – Risk & portfolio diversification – Beta & performance evaluation |
| Probability Theory | – Probability & conditional probability – Random variable & distribution function – Expectation & standard deviation – Binomial, Poisson, Normal distributions – Credit risk, VaR, option valuation |
What are the paper-wise CAIIB 2026 exam dates for the May-June cycle?
The CAIIB 2026 May-June cycle will be conducted online from 31st May 2026 to 21st June 2026. The details of the paper wise exam dates are as follows:
| Paper / Subject | Exam Date |
| Advanced Bank Management (ABM) | 31st May 2026 |
| Bank Financial Management (BFM) | 7th June 2026 |
| Advanced Business & Financial Management (ABFM) | 13th June 2026 |
| Banking Regulations & Business Laws (BRBL) | 14th June 2026 |
| Elective Paper (Rural Banking / HRM / IT & Digital Banking / Risk Management / Central Banking) | 21st June 2026 |
Also Check: CAIIB Admit Card 2026
What are the paper-wise exam dates for the November-December 2026 CAIIB cycle?
The CAIIB 2026 November-December cycle will be conducted online from 6th December 2026 to 27th December 2026. The details of the paper wise exam dates are as follows:
| Paper / Subject | Exam Date |
| Advanced Bank Management (ABM) | 6th December 2026 |
| Bank Financial Management (BFM) | 12th December 2026 |
| Advanced Business & Financial Management (ABFM) | 13th December 2026 |
| Banking Regulations & Business Laws (BRBL) | 20th December 2026 |
| Elective Paper (Rural Banking / HRM / IT & Digital Banking / Risk Management / Central Banking) | 27th December 2026 |
FAQs
Ans. It improves knowledge of regulatory guidelines, risk handling, and strategic decision-making in banks.
Ans. Candidates must score at least 50 out of 100 marks to pass the exam.
Ans. No, it is an elective paper; candidates can choose it based on interest and career goals.
Ans. There are six main modules and one appendix in the CAIIB Risk Management syllabus.
Ans. It covers Basel I, II, and III norms along with RBI’s risk-based supervision framework.
- 50 Most Repetitive Questions for CAIIB ABM 2026, Download PDF
- 50 Most Repetitive Questions for CAIIB BFM 2026, Download PDF
- 50 Most Repetitive Questions for CAIIB BRBL 2026, Download PDF
- Attempt CAIIB ABM Important MCQs and Download PDF
- Attempt CAIIB BRBL Practice Quiz and Download Free PDF
- 50 Most Repetitive Questions for CAIIB ABFM 2026, Download PDF
Hi, I’m Aditi. I work as a Content Writer at Oliveboard, where I have been simplifying exam-related content for the past 4 years. I create clear and easy-to-understand guides for JAIIB, CAIIB, and UGC exams. My work includes breaking down notifications, admit cards, and exam updates, as well as preparing study plans and subject-wise strategies.
My goal is to support working professionals in managing their exam preparation alongside a full-time job and to help them achieve career growth.