AICB Bank Risk Practices (BKR, Malaysia) study guide
AICB Bank Risk Practices (BKR, Malaysia) · Work through your exam, one topic at a time.
The AICB Bank Risk Practices (BKR) certificate is a professional qualification offered through the Asian Institute of Chartered Bankers, Malaysia's banking professional body. It is designed for banking practitioners who need a working, practical command of risk rather than a narrow specialist depth: officers moving into risk-facing roles, relationship and credit staff, operations and compliance personnel, internal auditors, and branch or middle managers who must read risk reports and act on them. The AICB Bank Risk Practices (BKR, Malaysia) study guide has 9 sections and about 2,468 words.
01Risk Management Framework and Governance
The BKR syllabus tests whether you can explain how a Malaysian bank's board and senior management own risk. Expect questions on the three lines of defence, board risk committees, risk appetite statements (RAS), the role of the CRO, new product approval and technology risk governance under BNM's RMiT.
311 words, about 2 min02Credit Risk
Credit risk questions test BNM's credit risk management expectations, credit approval and monitoring, credit risk mitigation (CRM), MFRS 9 expected credit losses (ECL), concentration and related-party limits. BNM's Guidelines on Credit Risk Management require a board-approved credit risk strategy, independent credit review, separation of marketing from credit approval, and problem-loan management.
285 words, about 1 min03Market Risk
Market risk questions cover trading-book boundary, VaR and sensitivity limits, independent market risk oversight, backtesting, and capital under the Standardised Approach or approved internal models. BNM's market risk guidance expects board-approved limits, daily independent reporting, and a clear trading-book/banking-book boundary policy.
272 words, about 1 min04Operational Risk
Operational risk covers loss from failed processes, people, systems or external events, plus legal risk. The exam tests RCSA, loss data, KRIs, business continuity, outsourcing, technology risk under RMiT, and the capital approach.
272 words, about 1 min05Liquidity Risk
Liquidity risk questions test the LCR, NSFR, funding concentration, maturity mismatch, the contingency funding plan (CFP) and intraday liquidity. LCR = high-quality liquid assets (HQLA) / net cash outflows over 30 calendar days; the minimum is 100%.
276 words, about 1 min06Compliance
Compliance tests the independent compliance function, compliance risk assessment, AML/CFT, conduct and board reporting. BNM's Compliance policy document expects a board-approved compliance framework and an independent compliance function headed by a Chief Compliance Officer with direct access to the board or its committee.
271 words, about 1 min07Regulatory and Legal Risk
Regulatory and legal risk covers changes in laws and BNM policy documents, supervisory action, litigation, contract enforceability, sanctions and licensing. Regulatory risk includes both breach risk and change risk.
248 words, about 1 min08Risk Reporting
Risk reporting tests what the board and senior management receive, how often, with what data quality, and how breaches are escalated. BNM expects timely, accurate and independent risk reporting to the board and its risk committee.
267 words, about 1 min09Stress Testing and Capital Adequacy
Stress testing and capital adequacy tests scenario design, ICAAP, capital buffers, reverse stress testing and the use of stress results in capital planning. BNM's stress testing expectations require a board-approved framework, severe-but-plausible scenarios, sensitivity analysis, reverse stress testing, and capital and liquidity stress tests.
266 words, about 1 min