Nothing reads more encouragingly than the true success story of visionary BBI students who have cleared TYBBI Sem 5 exams this year with amazing grades. The journey has not been easy for a BBI student who has to manage his/her academics and also enjoy his/her college life. At BBI.co.in, we salute these outstanding students and we are confident they will inspire the […]
Input Process For Operational Risk The first step in the operational risk measurement process is to gather the information needed to perform a complete assessment of all significant operational risks. A key source of this information is often the finished product of other groups. For example, a unit that supports the business group often publishes […]
Four-Step Measurement Process For Operational Risk Clear guiding principle for the operational risk measurement process should be set to ensure that it provides an appropriate measure of operational risk across all business units throughout the bank. This problem of measuring operational risk can be best achieved by means of a four-step operational risk process. The […]
Develop well-defined operational risk policies. This includes explicitly articulating the desired standards for the risk measurement. One also needs to establish clear guidelines for practices that may contribute to a reduction of operational risk. Establish a common language of risk identification. For e.g., the term “people risk” includes a failure to deploy skilled staff. “Technology […]
Types of Operational Failure Risk 1. People Risk 1. Incompetancy. 2. Fraud. 2. Process Risk · Model Risk · TR · OCR 1. Model/ methodology error 2. Mark-to-model error. 1. Execution error. 2. Product complexity. 3. Booking error. 4. Settlement error. 1. Exceeding limits. 2. Security risk. 3.Volume risk. 3. […]
Credit Risk Models A credit risk model seeks to determine, directly or indirectly, the answer to the following question: Given our past experience and our assumptions about the future, what is the present value of a given loan or fixed income security? A credit risk model would also seek to determine the (quantifiable) risk that […]
Operations / Systems Of Banks Banks should have in place an appropriate credit administration, credit risk measurement and monitoring processes. The credit administration process typically involves the following phases: Relationship management phase i.e. business development. Transaction management phase covers risk assessment, loan pricing, structuring the facilities, internal approvals, documentation, loan administration, on going monitoring and […]
Organizational Structure Sound organizational structure is sine qua non for successful implementation of an effective credit risk management system. The organizational structure for credit risk management should have the following basic features: The Board of Directors should have the overall responsibility for management of risks. The Board should decide the risk management policy of the […]
Credit Risk Strategy Each bank should develop, with the approval of its Board, its own credit risk strategy or plan that establishes the objectives guiding the bank’s credit-granting activities and adopt necessary policies/ procedures for conducting such activities. This strategy should spell out clearly the organization’s credit appetite and the acceptable level of risk-reward trade-off […]
Credit Risk Policy Every bank should have a credit risk policy document approved by the Board. The document should include risk identification, risk measurement, risk grading/ aggregation techniques, reporting and risk control/ mitigation techniques, documentation, legal issues and management of problem loans. Credit risk policies should also define target markets, risk acceptance criteria, credit approval […]
Building Blocks of Credit Risk Management: In a bank, an effective credit risk management framework would comprise of the following distinct building blocks: Policy and Strategy Organizational Structure Operations/ Systems Policy and Strategy The Board of Directors of each bank shall be responsible for approving and periodically reviewing the credit risk strategy and significant credit […]
- List of 30 Project Topics on Insurance May 11, 2012
- TYBBI Sem 5 Syllabus March 28, 2012
- TYBBI 6th Sem 2013 timetable announced February 26, 2013
- What after BBI? July 25, 2012
- Interview with Prof. Aurora Vaz , BBI Head, Mithibai College April 2, 2012
- Here’s a Quick Way to Know About Input Process For Operational Risk March 2, 2015
- Here’s a Quick Way to Know About Four-Step Measurement Process For Operational Risk March 2, 2015
- Here’s a Quick Way to Know About Eight Key Elements To Achieve Best Operational Risk Management March 2, 2015
- Here’s a Quick Way to Know About Types of Operational Failure Risk March 2, 2015
- Here’s a Quick Way to Know About Credit Risk Models March 2, 2015
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