Risk Management in Non-Interest Banking and Finance

The economic crisis of today demands an effective and efficient Risk Management (RM) process, which helps to keep the risk within the risk tolerance threshold. The Risk management process is not new for financial institutions. They are using it to control their risks arising from core businesses. The perception of risk management has changed with the advent of Basel II. RM is no longer seen as a sideline function - but it is now considered as main stream functions.

Risk Management is all about control; a million dollar question for organizations is how much control is enough. Financial Institutions focus to provide an adequate return to the stakeholders based on pre-calculated risks. Risk appetite of the organizations may vary, depending upon a number of factors. The regulators are also major stakeholder in managing the risk; as it is required by the regulators that all risky transactions of financial institution should be thoroughly assessed.

The Basel II accord is now implemented in a number of countries. As per the accord, the Financial Institutions are required to allocate regulatory capital against the major components of the risk and report the key numbers in the predefined format.

This course of "Risk Management for Non-Interest Banking and Finance Institutions" is jointly developed by D-vaR and GISBA in the light of the current requirement of the market. This comprehensive course discusses all the important points which the management of a Financial Institution should be aware of. It also examines how BASEL II complements Islamic Risk Management Methodology. The course discusses implementation of Value-at-Risk (VaR) and other Basel-II parameters with special reference to Islamic Banking.