AICB Bank Risk Practices (BKR, Malaysia) study plan

Map the three-lines-of-defence model onto a bank's board, risk committee, CRO, and internal audit roles, and state who owns which decision

Explain how the board risk appetite statement cascades into business-unit limits, and give one concrete example of a limit that would breach appetite if exceeded

Distinguish the roles of the board risk committee, audit committee, and management risk committee in approving versus monitoring risk

Summarise the Basel Committee principles for corporate governance in banks and identify which principles apply to a Malaysian bank's group structure

Draft a one-page governance organogram linking risk appetite, policy approval, and escalation paths

Classify credit exposures by counterparty type and explain how each attracts different risk weights

Compute expected loss from PD, LGD, and EAD for three sample exposures and interpret the result

Compare standardised and internal-ratings-based approaches to credit risk capital and state when each is permitted

Explain how credit risk appetite limits (concentration, single-name, sector) are set and monitored

Identify the governance controls that separate credit origination, approval, and monitoring

Evaluate credit scoring and rating models, including their limitations and validation requirements

Analyse loan classification and provisioning rules, including staging under expected credit loss accounting

Assess collateral valuation, haircuts, and the legal enforceability of security in a Malaysian context

Diagnose early-warning indicators of credit deterioration and design an escalation trigger

Explain forbearance, restructuring, and write-off treatment and how each affects reported credit quality

Distinguish trading book from banking book and explain the boundary criteria

Compute value at risk using variance-covariance and historical simulation for a small portfolio and compare the outputs

Explain the limitations of VaR and when expected shortfall or stress testing is more informative

Interpret duration, DV01, and beta as sensitivity measures for interest rate and equity risk

Describe how market risk limits, stop-loss triggers, and independent price verification operate in practice

Categorise operational risk events by Basel event type and business line and assign a sample of ten events

Compare the basic indicator, standardised, and advanced measurement approaches to operational risk capital

Explain how the three lines of defence detect and respond to operational risk incidents, including fraud and outsourcing failures

Compute the liquidity coverage ratio and net stable funding ratio from a simplified balance sheet

Distinguish funding liquidity risk from market liquidity risk and explain how a funding concentration amplifies both

Interpret liquidity stress scenarios and the role of the liquidity contingency plan and central bank facilities

Summarise the core anti-money-laundering and counter-terrorism-financing obligations of a Malaysian bank, including customer due diligence and suspicious transaction reporting

Explain how sanctions screening, politically exposed person checks, and record-keeping requirements interact

Identify the compliance risk implications of outsourcing, data protection, and conduct requirements

Explain how regulatory change is tracked, assessed, and embedded into policies

Distinguish regulatory capital tiers and compute the common equity tier 1, tier 1, and total capital ratios from given figures

Explain the purpose of capital buffers and leverage ratio and how each constrains business decisions

Design a stress test scenario for credit and market losses and translate the result into a capital impact

Evaluate risk reporting principles: accuracy, timeliness, granularity, and fitness for board decision-making

Critique a sample risk dashboard and identify which metrics are lagging versus leading

Synthesise the seven domains into an integrated view of how a single adverse event propagates across credit, market, liquidity, and capital

Rehearse calculation-based questions under timed conditions and correct recurring errors

Recall the key ratios, thresholds, and definitions from all domains without reference material

Identify and close the two weakest domains based on practice results

Build a personal formula and definition sheet for final revision