The Indian Institute of Banking & Finance (IIBF) has officially released the Risk in Financial Services Syllabus 2025, covering all key areas required for both Level I (Indian perspective) and Level II (International perspective) examinations. The IIBF Risk in Financial Services exam structure has been prepared in collaboration with the Chartered Institute for Securities & Investment (CISI), London. This comprehensive syllabus equips banking and finance professionals with essential knowledge of risk types, regulatory guidelines, risk management frameworks, and global best practices. In this blog, we have provided the detailed module-wise topics, along with the direct link to download the syllabus PDF.
IIBF Risk in Financial Services Syllabus 2025
The details of the IIBF Risk in Financial Services 2025 Syllabus are as follows:
Level I – Indian Perspective (Paper 1: Risk Management)
- Module A: Risk & Risk Management Framework
- Module B: Credit Risk
- Module C: Market Risk
- Module D: Operational Risk
- Module E: Basel & RBI Guidelines
- Module F: Derivatives & Risk Management
- Appendix: Statistical Concepts
Level II – International Perspective (Paper 2: Risk in Financial Services)
- Principles of Risk Management
- International Risk Regulation
- Operational Risk
- Credit Risk
- Market Risk
- Investment Risk
- Liquidity Risk
- Corporate Governance & Risk Oversight
- Model Risk
- Enterprise Risk Management (ERM)
IIBF Risk in Financial Services Certification Exam Structure
The IIBF Risk in Financial Services Certification has been specially curated for both members and non-members of the Indian Institute of Banking and Finance. The course is conducted in collaboration with the Chartered Institute for Securities & Investment (CISI), London, and consists of two levels Level I (Indian perspective) and Level II (International perspective).
| Component | Details |
|---|
| Eligibility | Open to IIBF Members and Non-members |
| Course Levels | Level I and Level II |
| Examination Parts | - Part 1: Indian Scenario (conducted by IIBF) - Part 2: International Scenario (conducted by CISI, London) |
| Level I – Indian Perspective |
| Exam Duration (Level I) | 2 hours |
| Study Hours (Level I) | 40 to 60 hours |
| Content (Level I) | Risk Management – Indian Perspective |
| Post-Exam Requirement (Level I) | 3-day training at pre-announced centres |
| Certificate (Level I) | IIBF certificate awarded after online exam and training |
| Level II – International Perspective |
| Eligibility (Level II) | Only for candidates who have passed Level I |
| Exam Conducted by (Level II) | Chartered Institute for Securities & Investment (CISI), London |
| Exam Duration (Level II) | 2 hours |
| Study Hours (Level II) | 100 hours |
| Content (Level II) | Risk in Financial Services – International Scenario |
| Certificate (Level II) | Joint certificate by IIBF and CISI upon completion |
| Level II Registration Requirements |
| Registration with IIBF | Mandatory before applying to CISI |
| Registration Fee | ₹1000 + applicable taxes (one-time) |
| Next Steps | IIBF forwards candidate details to CISI. Candidates must then complete CISI's formalities independently. |
IIBF Risk in Financial Services Level 1 Exam Pattern
The IIBF Risk in Financial Services Level I examination is structured to assess a candidate's foundational understanding of risk management principles within the Indian financial sector.
| Component | Details |
|---|
| Subject | Risk Management (Indian Perspective) |
| Mode of Examination | Online only |
| Medium of Examination | English |
| Type of Questions | Objective type multiple-choice questions, including case studies/case-lets |
| Number of Questions | Approximately 100 questions (subject to change by the Institute) |
| Total Marks | 100 |
| Passing Criteria | Minimum 50 marks out of 100 |
| Negative Marking | No negative marking for incorrect answers |
| Exam Duration | 2 hours |
IIBF Risk in Financial Services Level 2 Exam Pattern
The Level II examination of the IIBF Risk in Financial Services Certification is conducted in partnership with the Chartered Institute for Securities & Investment (CISI), London. This level focuses on assessing the candidate's understanding of global risk management practices and principles. The exam is held in a proctored online format at designated test centres across India.
| Component | Details |
|---|
| Subject | Paper 2 – Risk in Financial Services |
| Type of Questions | 100 multiple-choice objective type questions |
| Total Marks | 100 |
| Passing Criteria | Minimum 70% (i.e., 70 out of 100 marks) |
| Exam Duration | 2 hours |
| Mode of Examination | Online mode only |
| Exam Centres | Prometric test centres in 8 cities: Mumbai, Chennai, Bengaluru, Kolkata, Hyderabad, Gurugram, Ahmedabad, and Thiruvananthapuram |
| Exam Frequency | Conducted throughout the year (except Saturdays and Sundays) |
IIBF Risk in Financial Services Training & Evaluation Process
After clearing the online examination, candidates are required to undergo a mandatory 3-day training program, which is an essential part of the certification process. The training is aimed at enhancing participants' practical understanding and application of risk management principles.
- Eligibility for Training: Only candidates who have successfully cleared the Level I online examination are eligible to apply for training.
- Mode of Training: Candidates can choose between:
- Classroom Training at select centres (Mumbai, Delhi, Chennai, Kolkata, etc.)
- Virtual Classroom Training conducted online
- Registration: Candidates must log in to the IIBF website and select their preferred slot from the available training dates and centres.
- Training must be completed within 15 months from the date of the Level I exam result declaration.
- If not completed within this timeframe, candidates must re-enroll for the exam and forfeit credit for the previous pass.
Internal Evaluation Structure
The internal evaluation structure are as follows:
| Particulars | Weightage | Total Marks | Minimum Marks to Pass | Remarks |
|---|
| Attendance | 50% | 50 Marks | 25 Marks (50%) | Minimum attendance in 5 out of 10 sessions is compulsory (spread across 3 days) |
| MCQs (End of Each Session) | 50% | 50 Marks | 25 Marks (50%) | 5 MCQs per session, total of 50 MCQs (1 mark each) at the end of training |
Passing Criteria:
- Minimum 50 marks out of 100 (combined).
- A minimum of 20 marks in MCQs is mandatory, even if attendance marks are higher.
Evaluation Parameters for Internal Marks
The details of the evaluation parameters for internal marking are as follows:
- Faculty will assess candidates on:
- Participation in sessions
- Analytical and problem-solving abilities
- Engagement in case discussions
- Presentation and communication skills
Exemption from IIBF Risk in Financial Services Level I Examination
The Indian Institute of Banking & Finance (IIBF) provides an exemption from the Level-I examination of the Risk in Financial Services certification for candidates who already possess relevant qualifications in risk management.
| Sub-topic | Details |
|---|
| Eligible Candidates for Exemption | - IIBF Members who have passed any of the following: 1. Diploma in Treasury, Investment & Risk Management (DTIRM) 2. CAIIB with elective in ‘Risk Management' 3. CAIIB holders with Certificate in Risk Management as a separate elective |
| Exemption Benefit | Eligible candidates can skip Level-I examination and proceed directly to training and Level-II examination. |
| Mandatory Registration | Candidates must still register for Level-I exam and pay the applicable fees and taxes to be considered for exemption. |
| Steps to Claim Exemption | 1. Apply online for the Level-I exam and pay the required fees. 2. Send a separate written exemption request along with: - Acknowledgement copy of Level-I exam registration - Copy of Result Advice/Final Certificate of qualifying exam 3. Send documents to the IIBF Examination Corporate Office before the last date for applying for the examination. |
| Important Note | Requests received after the deadline will not be accepted. Exemptions are subject to verification and approval by IIBF. |
IIBF Risk in Financial Services Syllabus for Module A
This module introduces the fundamentals of risk and why banks are considered special institutions in the financial system. It outlines different types of risks and establishes a framework for effective risk governance and control.
| Module | Topics | Subtopics |
|---|
| Why Banks are Special | Functions and Role of Banks | - Functions Banks Perform - Bank's Role in the Economy - Other Uniqueness of Banks |
| Risks and Risk Management in Banks | Understanding Risk | - What is Risk? - Definition of Risk - Risk in Banks |
| Types of Risks | - Business Risk vs Control Risk - Financial Risk vs Non -Financial Risk - Various Types of Risks Faced by Banks - Non-Financial Risks |
| Risk Interconnectedness and Developments | - Interconnectedness Among Banking Risks - Recent Developments in Risk Management - Banking Reforms in India - New Trends in Indian Banking System - Risk Management Going Ahead |
| Risk Management Framework | Core Concepts and Benefits | - Lessons from Crisis - Benefits of Risk Management - Risk Management Concept - Risk Management Approach - Risk Culture - Risk Management Architecture |
| Elements and Structure | - Elements of Risk Management Framework - Organisational Structure - Risk Management Policy - Risk Appetite - Risk Limits |
| Risk Management Processes | - Risk Identification Process - Risk Measurement - Risk Mitigation - Risk Monitoring and Control - Management Information System (MIS) |
| Enterprise Risk Management (ERM) | - Events: Risk and Opportunity - ERM Defined - Achievement of Objectives - Components of ERM - Relationship of Objectives and Components - Effectiveness - Encompasses Internal Control |
| Asset Liability Management (ALM) & Interest Rate Risk | ALM Fundamentals | - What is ALM? - Objectives of ALM - ALM Process |
| Interest Rate Risk | - Interest Rate Risk in Banking Book - Duration GAP Analysis - Measurement System Reports - Stress Testing - Back Testing - Interest Rate Risk Mitigation |
| Liquidity Risk Management | Liquidity Risk Overview | - What is Liquidity? - Liquidity vs Solvency - Forms of Liquidity Risk |
| Managing 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 |
IIBF Risk in Financial Services Syllabus for Module B
This module focuses on credit risk—the largest risk class for banks. It explains risk at both borrower and portfolio levels and details credit rating systems, credit models, and risk-based pricing.
| Module | Topics | Subtopics |
|---|
| Credit Risk Management Framework | Understanding Credit Risk | - What is Credit Risk? - Obligor (or) Borrower Level Risk vs Portfolio Risk - Systematic vs Unsystematic Risk - Need for Credit Risk Management Framework |
| Framework Elements | - Credit Risk Culture - Building Blocks of Credit Risk Management - Strategy, Financial Goals, Risk Appetite - Portfolio Risk and Reward |
| Lending Practices | - Loan Policy- Due Diligence Process - Loan Approval Process - Limits on Aggregate Loans and Commitments - Underwriting Criteria - Exceptions to Credit Policy |
| Organizational Aspects | - Organization Structure |
| Obligor / Borrower Risk | Risk Types | - Business Risk (or Operating Risk) - Financial Risk |
| Risk Interactions and Analysis | - Interaction between Business Risk and Financial Risk - Different Risk Levels - Sources of External Risk - Industry Risk Analysis - Entity Level Risk |
| Credit Rating System | Internal and External Ratings | - 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 Agencies |
| Portfolio Credit Risk | Risk Components | - Systematic Risk - Unsystematic / Idiosyncratic / Diversifiable Risk - Concentration Risk - Correlation Risks |
| Credit Risk Models | Model Types and Uses | - Uses of Credit Models - Types of Models |
| Measurement of Credit Risk | Risk Measurement Metrics | - Probability of Default (PD) - Methods for Estimating PD - Exposure at Default (EAD) - Loss Given Default (LGD) |
| Portfolio-Level Risk Analysis | - Portfolio Assessment of Credit Risk - Risk Adjusted Return on Capital (RAROC) - Economic Capital in RAROC Model - Uses of RAROC |
| Pricing Based on Risk | - Risk-Based Pricing - Methods of Risk-Based Pricing |
| Credit Derivatives | Concepts and Instruments | - What is a Credit Derivative? - Protection Buyer vs Protection Seller - Advantages to Both Parties - Credit Events - Payout Mechanisms |
| Derivative Types | - Credit Default Swap (CDS) - Total Return Swap (TRS) - Credit Options - Credit -Linked Notes |
IIBF Risk in Financial Services Syllabus for Module C
This module addresses risks arising from changes in market prices and interest rates. It also includes the valuation and management of fixed-income securities and computation methods for Value at Risk (VaR).
| Topics | Subtopics |
|---|
| Market Risk Overview | - What is Market Risk? - Trading Portfolio in a Bank - Interest Rate Risk - Equity Price Risk - Foreign Exchange Risk - Commodity Price Risk - Liquidity Risk - Credit and Counterparty Risks - Model Risk |
| Market Risk Management Framework | - Market Risk Management Framework - Organizational Structure to Manage Market Risk - Organizational Structure for Trading Activity - Risk Management Strategy - Policies and Procedures |
| Fixed Income Securities | - What is a Bond? - Government of India in the Bond Market - Bond Market in India- Bond Valuation |
| Measurement of Interest Rate Risk | - Sensitivity Approach - Price Value of a Basis Point (PVBP) - Computation of Portfolio PVBP - Hedging Using PVBP - Other Uses of PVBP - Duration: Definition and Properties - Portfolio Duration - Modified Duration and Price Elasticity - Price Volatility Characteristics of Bonds - Convexity - Bond Portfolio Management |
| Value at Risk (VaR) | - Historical Background - Definitions of VaR - Assumptions for VaR Calculation - Building Blocks of VaR - VaR Methodologies - Comparison of VaR Methods - Advantages and Disadvantages of Methods - Limitations of VaR - Extreme Value Theory - Stress Testing - Back Testing of VaR Models |
IIBF Risk in Financial Services Syllabus for Module D
This module covers risks from internal processes, people, and systems, including cyber risks. It details frameworks and controls banks should adopt to mitigate operational disruptions.
| Topics | Subtopics |
|---|
| 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 Guidelines and Strategic Approach - Operational Risk Identification Process - Assessment of Operational Risk |
| Collection of Internal & External Loss Data | - Collection of Loss Data - Minimum Loss Data Standard - Specific Criteria for Loss Data Identification - Collection and Treatment - Near-Misses and Opportunity Costs - External Loss Data - Root-Cause Analysis |
| Risk and Control Self-Assessment (RCSA) & Key Risk Indicators (KRI) | - RCSA Process - Defining Inherent Risk - Effectiveness of Control Assessment - Computation of Risk Zones - Color-Coded Risk Levels - Key Risk Indicators (KRIs) - Various Forms of KRI - Selecting KRIs - Risk Appetite - Scenario Analysis - Uses of KRIs |
| Technology Risk | - Basic Principles of Information Security - Information Security Governance - Organizational Structure: Roles and Responsibilities - Critical Components of Information Security - Malware Protection Measures - Patch and Change Management - Audit Trails - Reporting and Metrics - Vendor & Service Provider Security - Network & Remote Access Security - DDoS/DoS Attacks - ISO 27001 Implementation - Wireless Security - Business Continuity Considerations - Information Security Assurance - Security in Delivery Channels & Emerging Technologies - Working Group Recommendations on Information Security - Electronic Banking - Technology Risk Management and Cyber Frauds |
| Corporate Governance | - Definition of Corporate Governance - Governance in Banking Sector - Basel Committee's Perspective - Importance of Risk Management in Governance - Benchmarking Risk Governance |
| Climate Risk & Sustainable Finance | - Climate Situation in India - Basel Committee on Climate Risk - Climate Risk Definition and Characteristics - Implications of Climate Change - Financial Risks from Climate Change - Climate Risk Management Framework - Green Finance and Sustainable Development |
IIBF Risk in Financial Services Syllabus for Module E
This module offers insight into regulatory frameworks like Basel Accords and Indian RBI guidelines to help banks maintain capital adequacy and effective supervision.
| Topics | Subtopics |
|---|
| Why Do Banks Need Regulation? | - Need for Regulation of Banks - Banking Regulation and Supervision - Regulation & Supervision in India - Global Banking Regulation - Basel Committee on Banking Supervision - The Concordat- Basel I Accord - Basel Committee Amendment (1996) - Basel II Accord |
| Global Financial Crisis and Basel III | - Regulatory Shortcomings - Regulatory Reforms - Basel Committee's Response to the Global Financial Crisis |
| Regulatory Capital and Capital Adequacy | - Bank Capital: Accounting Residual - Why Banks Need Capital - Minimum Capital Prescription - Basel III Capital Regulation - Standardized Approach: Capital Charge for Credit Risk - Off-Balance Sheet Items - Total Counterparty Risk - External Credit Assessments - Issue Rating Applicability - Credit Risk Mitigation - Internal Rating Based Approach |
| Capital Allocation Against Market Risk | - Scope and Coverage of Capital Charge for Market Risks - Measurement of Capital Charge for Interest Rate Risk |
| Capital Charge for Operational Risk | - Definition of Operational Risk - Measurement Methodologies: • Basic Indicator Approach (BIA) • Standardized Approach (SA) • Advanced Measurement Approach (AMA) - New Standardized Approach - Shortcomings of Current Methods - Business Indicators - Risk-Weighted Assets- RBI Technical Guidance Note |
| Supervisory Review Process & ICAAP (Pillar 2) | - Objective of Supervisory Process - ICAAP Principles and Definitions - ICAAP Coverage and Structure - Risk Appetite and Risk Structure - Risk Identification, Monitoring & Reporting - Internal Controls- Board and RBI Submissions - ICAAP as a Management Culture - Principle of Proportionality - Independent Review & Validation - Forward-Looking ICAAP - Stress Tests & Scenario Analyses - Capital Planning and Allocation |
| Stress Testing | - Stress Testing Objectives - Sensitivity and Scenario Analyses - Reverse Stress Testing - Stress Testing Framework - Single Factor Stress Tests - Bank Classification for Testing - PCA Framework for SCBs- PCA Criteria |
| Market Discipline (Pillar 3) | - General Overview - Definition and Objectives - Disclosure Practices - Interaction with Accounting Disclosures - Validation and Materiality - Confidentiality vs Transparency - General and Regulatory Disclosure Principles |
| Basel III Buffers & Ratios | - Objectives of Capital Buffers - Capital Conservation Buffer (CCB) - Counter-Cyclical Capital Buffer (CCyB) - Domestic Systemically Important Banks (D-SIBs) - Leverage Ratio- Liquidity Standards • Liquidity Coverage Ratio (LCR) • Net Stable Funding Ratio (NSFR) |
| Risk Based Supervision (RBS) | - Background and RBI Initiatives - Supervision Process in India - Supervisory Approach and Framework Features - Benefits of RBS - Supervisory Tools and Methods |
| Risk Based Internal Audit (RBIA) | - What is Risk Based Auditing? - Objective of RBIA - Board and Management Oversight - Audit Policy - Functional Independence - Identification of Auditable Units - Conducting Risk Assessments - Developing Risk Profiles - Audit Communication Practices |
IIBF Risk in Financial Services Syllabus for Module F
This module provides a foundation on derivatives—how they are used to hedge risks and their role in risk management strategies.
| Topics | Subtopics |
|---|
| Introduction to Derivatives | - What is a Derivative? - Features of Derivatives - Over-the-Counter (OTC) vs Exchange -Traded Derivatives - Uses of Derivatives - Misuse of Derivatives - Major Types of Derivatives - Long and Short Positions - Derivative Markets in India |
| Forward Contracts | - Definition and Characteristics - Advantages of Entering a Forward Contract - Problems Associated with Forward Contracts - Pay-off on a Forward Contract - Pricing the Underlying Asset - Benefits and Costs of Holding Assets - Concept of Price vs Value of a Forward Contract - Forward Rate Agreement (FRA) |
| Futures Contracts | - What is a Futures Contract? - Futures vs Forward Contracts - Contract Performance Mechanism - Role of the Clearing House - Margin Account Mechanism - Spot vs Futures Price Relationship - Delivery and Cash Settlement - Pricing of Futures Contracts - Contango vs Normal Backwardation - Interest Rate Futures |
| Options | - Definition of Options - Option Terminology - Call Option- Put Option - Pricing of Options - Interest Rate Options |
| Swaps | - Definition and Characteristics of Swaps - Swap Terminology - Types of Swaps - Interest Rate Swaps - Calculating Interest Rate Swap Cash Flows - Uses of Interest Rate Swaps - Swaptions (Options on Swaps) |
IIBF Risk in Financial Services Syllabus for Appendix Statistical Concepts
This section includes fundamental statistical tools and theories essential for risk quantification and financial modeling.
| Topics | Subtopics |
|---|
| Statistical Measures | - Frequency Distribution - Measures of Central Tendency (Mean, Median, Mode) - Measures of Dispersion (Range, Variance, Standard Deviation) - Measures of Skewness - Measures of Kurtosis - Measures of Correlation - Measures of Regression - Expected Return - Average of Ratios - Risk- Average Growth Rate - Portfolio Diversification - Beta - Performance Evaluation |
| Probability Theory | - Probability and Conditional Probability - Random Variables- Distribution Functions - Expectation and Standard Deviation - Binomial Distribution - Poisson Distribution - Normal Distribution - Applications in Finance: • Credit Risk • Value at Risk (VaR) • Option Valuation |
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IIBF Risk in Financial Services Paper 2 Syllabus
The Level II Paper 2: Risk in Financial Services examination forms a key part of the professional certification pathway in risk management. This paper focuses on equipping candidates with an in-depth understanding of risk types, risk assessment frameworks, regulatory guidelines, and modern risk oversight mechanisms.
| Topic | Key Areas Covered |
|---|
| Principles of Risk Management | - Understanding key risk concepts - Risk identification, assessment, and mitigation techniques - Importance of risk culture and risk appetite |
| International Risk Regulation | - Overview of global regulatory bodies and frameworks - Basel Accords and their impact on banking - Cross-border supervision and international compliance |
| Operational Risk | - Risks from internal failures: people, systems, and processes - Measurement and monitoring of operational risk - Controls, reporting, and mitigation strategies |
| Credit Risk | - Risk of borrower default and credit exposure - Credit risk frameworks and credit rating systems - Portfolio-level risk management |
| Market Risk | - Exposure to market variables: interest rate, FX, equity, commodities - Value at Risk (VaR) and sensitivity analysis - Market risk governance and regulatory capital |
| Investment Risk | - Understanding volatility and performance metrics - Asset allocation, diversification, and portfolio risk - Risk-return trade-offs in investment decision-making |
| Liquidity Risk | - Inability to meet short-term obligations - Funding liquidity vs. market liquidity - Liquidity risk assessment and stress testing |
| Corporate Governance and Risk Oversight | - Role of board and senior management - Risk committees and accountability structures - Aligning governance with risk strategy |
| Model Risk | - Risks from reliance on flawed or misused models - Model validation and backtesting - Regulatory expectations on model risk |
| Enterprise Risk Management (ERM) | - Integrated and organization-wide approach to risk - Risk aggregation and reporting - Embedding ERM into strategic planning |
Download IIBF Risk in Financial Services Syllabus 2025 PDF
Aspirants interested in appearing for the IIBF Risk in Financial Services examination can download the Level 1 and Level 2 syllabus PDFs through the direct link provided here.
Download IIBF Risk in Financial Services Syllabus PDF
