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Macao Programme Handbook Module on Risk Management

Module Objectives

This module aims to provide learners with practical knowledge on risk management, enabling them to identify and analyze different types of risks in banking and finance. Learners will understand and apply basic risk management principles at the bank level.

  • Provide learners with practical knowledge on risk management
  • Identify and analyze different types of risks in banking and finance
  • Understand and apply basic risk management principles at bank level

Intended Learning Outcomes

Upon completion of this module, learners will be able to:

  • Apply sound governance, environmental, and social responsibilities to risk management
  • Analyze risk issues faced by the banking industry
  • Apply risk management techniques to alleviate different types of risks
  • Execute and monitor measures according to legal, regulatory, and compliance requirements

Assessment Method

The module will be assessed through a 1.5 hour examination consisting of 50 multiple-choice questions. The passing mark is set at 70%.

Syllabus

The module covers the following topics:

Introduction & Process of Risk Management

  • Definition of risk
  • Types of risk
  • Principles of risk management
  • Concepts of risk financing, risk control, hedging, and insurance
  • The need for risk management

Regulatory Requirements in Risk Management

  • Regulations of Financial Institutions (Macao)
  • Basel Committee on Banking Supervision

Structuring Risk Management Functions

  • Organisation of Risk Management Functions in a Bank
  • Risk Management Tools and Measures

The following readings are recommended for learners:

  1. HKIB Study Guide – Risk Management (Macao) (2020)
  2. HKIB E-learning Course No. 17 – Counter Party Credit Risk
  3. HKIB E-learning Course No. 35 – Governance, Risk and Compliance
  4. HKIB E-learning Course No. 42 – Market Risk – Intermediate
  5. HKIB E-learning Course No. 46 – Operational Risk Management
  6. Basel III: A global regulatory framework for more resilience in the face of banking and financial crises