CISI Risk in Financial Services study plan

Define the core risk categories (market, credit, operational, liquidity, conduct) and classify ten real bank disclosures into the correct category

Distinguish risk appetite, risk tolerance and risk capacity, and write a one-paragraph appetite statement for a fictional retail bank

Explain the credit assessment process from application through to facility letter, including the role of covenants and collateral

Calculate the five Cs of credit for two contrasting borrowers and justify which you would decline

Compute expected loss as PD x EAD x LGD for three worked exposures and explain how each input is estimated

Compare the standardised and internal ratings-based approaches to credit risk capital and list three practical differences

Identify the main credit risk mitigation techniques and evaluate the legal and operational conditions that make them effective

Analyse concentration risk and define single-name and sector limits for a hypothetical loan book

Distinguish performing, forborne and non-performing exposures and describe the triggers that move a borrower between them

Explain the purpose of IFRS 9 expected credit loss staging and calculate a simple three-stage provision example

Define the main market risk types (interest rate, equity, FX, commodity) and match each to a source of exposure

Interpret duration and modified duration to estimate the price change on a bond for a 50 basis point yield shift

Compute VaR using the variance-covariance and historical simulation methods on a small dataset and compare the outputs

Explain the limitations of VaR and describe how expected shortfall and stress testing address them

Apply the Basel trading book boundary rules to classify five positions as banking or trading book

Calculate a basic backtesting exception count and explain the regulatory consequences of breaches

Map the three lines of defence model onto named roles in a financial firm and describe the reporting lines for each

Explain the board's risk oversight duties, including the role of the risk committee and the chief risk officer

Distinguish the duties of executive and non-executive directors and evaluate what makes a non-executive effective

Describe how a firm's risk culture is assessed and list three indicators of a weak culture

Explain the role of the Basel Committee and how its standards are transposed into national rules

Summarise the three Basel pillars and identify which risks each pillar addresses

Describe the supervisory review and intervention process, including how supervisors use Pillar 2 capital requirements

Outline the main conduct and market abuse obligations that create regulatory risk for a firm

Distinguish the main regulatory capital ratios and liquidity ratios and calculate each from a simplified balance sheet

Explain how recovery and resolution planning reduces systemic risk and describe the purpose of a bail-in

Identify the components of an operational risk framework, including the risk and control self-assessment and key risk indicators

Design three key risk indicators with thresholds and escalation triggers for a chosen operational risk

Synthesise all five domains into a one-page concept map linking risk types, governance, regulation and measurement

Complete two full timed mock papers and record the score for each domain

Re-teach the two weakest domains from memory without notes and identify remaining gaps

Consolidate a personal formula sheet covering expected loss, duration, VaR and capital ratios