Bank Risk Management (BRM)

Introduction


The Bank Risk Management (BRM) is a two-module intermediate level qualification on bank risk management. It provides a qualitative introduction to bank risk and bank risk management. The aim is to produce a highly accessible guide to the practices and procedures for managing risk in banking to as wide an audience as possible.

It focuses on a wide range of risk management issues such as regulatory, credit, market, operational and liquidity risks. The goal is to assist the student develop a comprehensive understanding of bank risk management activities without getting lost in quantitative mathematical sophistication.

The content is presented in an easily readable format to enable students to understand key qualitative risk factors and how they impact risk management. Each chapter contains numerous illustrative examples and case studies of real life situations to enable students to relate theory to real world events.

The Qualification has two modules:-

Module 1 – Risk Management in Banking: Principles and Framework
Module 2 – Risk Management in Banking: Risk Models, Capital and Asset Liability Management

 

Target Audience


  • Risk management entry level executive
  • Operations
  • Internal audit
  • Treasury
  • Accounting and finance
  • Legal

The Bank Risk Management (BRM) qualifications will be restructured in 2021. Please click here for more details on the updated BRM structure.

Module 1: Risk Management in Banking: Principles and Framework


  • Offers a broad based understanding of the types of risk faced by banks and how these risks may be identified, assessed and managed. It is to enable general banking executives to understand key risk management concepts and discuss developments in bank risk management intelligently.
  • Participants are encouraged to spend at least 100 hours (both self-study and classroom time) to complete Module 1.
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Content Structure Overview
Chapter 1: Concepts of Bank Risks
Chapter 2: Risk Management Principles and Framework
Chapter 3: Risk Management Process
Chapter 4: International Risk Regulation
Chapter 5: Credit Risk
Chapter 6: Identification of Credit Risk
Chapter 7: Operational Risk
Chapter 8: Identification of Operational Risk
Chapter 9: Market Risk
Chapter 10: Liquidity Risk

Module 2: Risk Management in Banking: Risk Models, Capital and Asset Liability Management


  • Builds upon the material learned in Module 1 and enhances the qualitative understanding of risk management techniques and international risk based regulations of banks. It provides numerical examples and enough details for students to develop their own simple Excel spreadsheets to enhance their understanding of basic risk management models, the application of risk management tools and techniques and the interpretation of results.
  • Module 2 caters to the specialist risk management professional who aims to understand risk management theories and apply market, credit, operational and liquidity risk management tools in practice. Module 2 aims to allow the specialist professional to interpret results of risk management quantification tools to make intelligent decisions related to risk management. Module 2 combines both qualitative and quantitative approaches to achieve these objectives.
  • Participants are encouraged to spend at least 150 hours (both self-study and classroom time) to complete Module 2.
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Content Structure Overview
Chapter 1: Foundations in Risk Models
Chapter 2: Credit Risk Models
Chapter 3: Operational Risk Models
Chapter 4: Market Risk Models
Chapter 5: Asset and Liability Management
Chapter 6: Capital Management
Chapter 7: Regulatory Approaches

The Bank Risk Management (BRM) qualifications will be restructured in 2021. The current two modules and examinations each of the BRM will be condensed into one module, with a single examination structure. Kindly note that the closing date for BRM/CBA applications under the current structure will be on 30 November 2020. Beginning 1 December 2020, all new BRM/CBA applications will the condensed structure. Please click here for more details on the condensed BRM structure.”

PROGRAMME FEES 


Level
Price (RM)
(Inclusive of 6% Service Tax)
Exam Re-sit  fee
(RM)
(Inclusive 6% Service Tax)
Module 1 Risk Management in Banking: Principles and Framework
1,219
265
Module 2 Risk Management in Banking: Risk Models, Capital and Asset Liability Management
1,219
265

Please click here for more details on the condensed BRM structure.”

Standard Route – Enrolment

Please click here for more details on the condensed BRM structure.

In order to enrol as a candidate in Bank Risk Management, an applicant must satisfy the following requirements:

Membership Requirement – Candidates are required to be Individual Members of AICB
Qualification Entry Requirement Pathway
Bank Risk Management
  • Degree OR
  • Certificate or Diploma with three (3) years of risk or banking experience, OR
  • SPM or equivalent qualification with six (6) years of risk or banking experience.
  • Complete 2 BRM modules
    Click here to view the syllabus

Accelerated Route – Exemption

Holders of the following risk management certifications are eligible to be exempted from Module 1 and only need to complete Module 2:

Membership Requirement – Candidates are required to be Individual Members of AICB
Qualification Entry Requirement Pathway
Bank Risk Management
  • Certified Financial Risk Manager (Certified FRM) from the Global Association of Risk Professionals (GARP); OR
  • Certified Professional Risk Manager (Certified PRM) from the Professional Risk Managers’ International Association (PRMIA)
  • Exemption – BRM Module 1
  • Complete BRM Module 2 only
    Click here to view the syllabus

When applying to enrol for the BRM qualification via the Applicant Portal, upload the FRM/PRM certificate for us to process the exemption.

APPROVAL

  1. All applications for enrolment or exemption will be processed in accordance with the requirements set out in the regulations.
  2. Applications will be processed upon receipt of full documentations as stated in the Documentation section.
  3. Approval for enrolment or exemption will be granted based on the information/documents submitted and applicants may be contacted in case additional information is required.
  4. Applicants will be informed of the Institute’s decisions within 10 working days from date of application (upon receipt of full and complete documentation) for qualifications and experience already assessed.
  5. Where the applicant’s qualifications have not been previously assessed by the Institute, the processing time will be longer.
  6. Candidates will be informed in writing of the Institute’s decision via email.

Assessment

Please click here for more details on the condensed BRM structure.


SYLLABUS STRUCTURE
METHOD OF ASSESSMENT
Module 1 Risk Management in Banking Principles and Framework Examination: 100 independent MCQs

– Online examination
– Duration: 2 hours

Module 2 Risk Management in Banking: Risk Models, Capital and Asset Liability Management Examination:
– Part 1: 60 independent MCQs
– Part 2: 20 case-based MCQs- Duration: 3 hours
Area of Study
Module 1 Module 2
Chapter 1: Concepts of Bank Risks
Chapter 2: Risk Management Principles and Framework
Chapter 3: Risk Management Process
Chapter 4: International Risk Regulation
Chapter 5: Credit Risk
Chapter 6: Identification of Credit Risk
Chapter 7: Operational Risk
Chapter 8: Identification of Operational Risk
Chapter 9: Market Risk
Chapter 10: Liquidity Risk
Chapter 1: Introduction to Risk Models
Chapter 2: Credit Risk Models
Chapter 3: Operational Risk Models
Chapter 4: Market Risk Models
Chapter 5: Asset and Liability Management
Chapter 6: Capital Management
Chapter 7: Regulatory Approaches
Grade Bands
Grade Band Marks
Distinction 80% – 100%
Pass 60% – 79%
Fail 0% – 59%
Time Limit

A candidate must pass both BRM modules within 3 years, failing which the passes gained will be nullified.

QUALIFICATION ENROLMENT & EXAMINATION SCHEDULE FOR 2020 BANK RISK MANAGEMENT (BRM)
ACTIVITY EXAM SITTING
SEPTEMBER 2020
(RESCHEDULED FROM
APRIL 2020)
OCTOBER 2020
(RESCHEDULED FROM
JULY/AUGUST 2020)
NOVEMBER
2020
Application Submission Closing Date for New Applicant 1 June 2020
(Monday)
29 June 2020
(Monday)
3 August 2020
(Monday)
Exam Registration and Payment Closing Date / L & D Sponsorship Approval Closing Date for New Applicant 29 June 2020
(Monday)
27 July 2020
(Monday)
1 September 2020
(Tuesday)
Workshop Dates at ABS

For the workshop dates, please refer to Asian Banking School website at https://www.asianbankingschool.com/

Online Exam Dates 1 to 30 September 2020 1 to 31 October 2020 1 to 30 November 2020
Exam Result Release Date 16 October 2020
(Friday)
(Release on the week of
26 October 2020)
16 November 2020
(Monday)
15 December 2020
(Tuesday)

 

QUALIFICATION ENROLMENT & EXAMINATION SCHEDULE FOR 2021
BANK RISK MANAGEMENT – BRM 1 & 2
ACTIVITY EXAM SITTING
JAN 2021 FEB 2021 MAR 2021 APR 2021 MAY 2021 JUN 2021
Application Submission Closing Date for New Applicant 30 Oct 2020 30 Oct 2020 30 Nov 2020
Exam Registration and Payment Closing Date /
L & D Approval Sponsorship Closing Date for New Applicant
15 Nov 2020 30 Nov 2020 30 Dec 2020 30 Jan 2021 28 Feb 2021 30 Mar 2021
Exam Registration and Payment Closing Date /
L & D Sponsorship Approval Closing Date for RE-SIT Candidate
30 Nov 2020 30 Dec 2020 30 Jan 2021 28 Feb 2021 30 Mar 2021 30 Apr 2021
Workshop Dates at ABS

For the workshop dates, please refer to Asian Banking School website at https://www.asianbankingschool.com/

Online Exam Dates 1 – 31Jan 2021 1 – 28 Feb 2021 1 – 31 Mar 2021 1 – 30 Apr
2021
1– 31 May
2021
1 – 30 Jun
2021
Exam Result Release Date 15 Feb 2021 15 Mar 2021 15 Apr 2021 15 May 2021 15 Jun 2021 15 Jul 2021
ACTIVITY EXAM SITTING
JUL 2021 AUG 2021 SEP 2021 OCT 2021 NOV 2021
Application Submission Closing Date for New Applicant
Exam Registration and Payment Closing Date / L & D Approval Sponsorship Closing Date for New Applicant 30 Apr 2021 30 May 2021 30 Jun 2021 30 Jul 2021 30 Aug 2021
Exam Registration and Payment Closing Date / L & D Sponsorship Approval Closing Date for RE-SIT Candidate 30 May 2021 30 Jun 2021 30 Jul 2021 30 Aug 2021 30 Sep 2021
Workshop Dates at ABS

For the workshop dates, please refer to Asian Banking School website at https://www.asianbankingschool.com/

Online Exam Dates 1– 31 Jul 2021 1 – 31 Aug 2021 1 – 30 Sep 2021 1 – 31 Oct 2021 1 – 30 Nov 2021
Exam Result Release Date 15 Aug 2021 15 Sep 2021 15 Oct 2021 15 Nov 2021 15 Dec 2021

* Note : BRM 1 and 2 will be offered until Nov 2021.

QUALIFICATION ENROLMENT & EXAMINATION SCHEDULE FOR 2021
BANK RISK MANAGEMENT (BRM) – UPDATED
ACTIVITY EXAM SITTING
MAY 2021 JUN 2021 JUL 2021 AUG 2021 SEP 2021 OCT 2021 NOV 2021 DEC 2021
Application Submission Closing Date for New Applicant 30 Jan 2021 28 Feb 2021 30 Mar 2021 30 Apr 2021 30 May 2021 30 Jun 2021 30 Jul 2021 30 Aug 2021
Exam Registration and Payment Closing Date / L & D Approval Sponsorship Closing Date for New Applicant 28 Feb 2021 30 Mar 2021 30 Apr 2021 30 May 2021 30 Jun 2021 30 Jul 2021 30 Aug 2021 30 Sep 2021
Exam Registration and Payment Closing Date / L & D Sponsorship Approval Closing Date for RE-SIT Candidate 30 Jun 2021 30 Jul 2021 30 Aug 2021 30 Sep
2021
30 Oct 2021
Workshop Dates at ABS

For the workshop dates, please refer to Asian Banking School website at https://www.asianbankingschool.com/

Online Exam Dates 1– 31 May 2021 1 – 30 Jun 2021 1– 31 Jul 2021 1 – 31 Aug 2021 1 – 30 Sep 2021 1 – 31 Oct 2021 1 – 30 Nov 2021 1 – 31 Dec 2021
Exam Result Release Date 15 Jun 2021 15 Jul 2021 15 Aug 2021 15 Sep 2021 15 Oct 2021 15 Nov 2021 15 Dec 2021 15 Jan 2022

Important Notes: 

  1. Training workshops for AICB qualifications are conducted by Asian Banking School (ABS). Candidates are required to check ABS’ website: asianbankingschool.com for the latest workshop dates.
  1. AICB, Pearson Vue or online test centre reserves the right to cancel, suspend, interrupt or reschedule any examination to another date and will not be liable for any claims, actions, costs, charges, expenses, damages, loss and liability due to the cancellation/deferment of these examinations.
  1. Please adhere to the above closing dates, otherwise AICB will not be responsible for any delay in the enrolment or registration. 
  1. The examination date displayed in the Member Portal is for registration purposes only. The online examination will be carried out throughout the exam month in Pearson VUE. Candidate can book an exam session in Pearson VUE on a date and time within the examination month stated in the schedule above.

DOCUMENTATION


The applications submitted will only be processed upon receipt of the full documentations. Candidates who submit incomplete applications (i.e. incomplete details or incomplete supporting documents) will be given five working days to provide the required information and/or documentation. If the candidate fails to submit the required information or complete set of relevant supporting documents within the five working days, the application will not be processed.

Below is the list of documents that are required for the qualification.

Documents Required
Qualification Standard Route (Enrolment) Accelerated Route (Exemption)
Bank Risk Management
  • Certificate of highest qualification (Degree/ Diploma/ Certificate/ SPM); AND
  • Curriculum Vitae (CV) highlighting risk, or banking-related work experience for non-degree holders
  • Certificate of the FRM or PRM Professional Qualification

 

 

Important notes:

Qualification certificates/transcripts submitted must be certified true copy by one of the following:

  • University Official; OR
  • Notary Public; OR
  • Commissioner for Oaths; OR
  • Officer of the employing organization; OR
  • Such other persons or agents as may be approved by Institute.

The signatory must sign and date the document(s) and provide the following details:

  • Name:
  • Designation:
  • E-mail:
  • Contact Number:

a) If the documents are not in English or Bahasa Malaysia, they must be accompanied by translation of the documents which is done by a certified translator. The credentials and contact information of the certified translator must be stated

b) Qualifications submitted for enrolment as a candidate for a qualification or for exemption must be awarded by universities/higher education institutions recognised by the awarding country’s Ministry of Higher Education or equivalent authority or the National Qualification Accreditation Agencies.

c) Malaysian qualifications should be listed in the Malaysian Qualifications Register or in Finance Accreditation Agency (FAA) website.

d) AICB reserves the right to contact the awarding institute to verify a candidate’s qualification awards.

Updated Bank Risk Management

Overview

The current Bank Risk Management (BRM) modules will be condensed into a “one module, one examination” structure effective from the May 2021 examination session.

The diagramme below illustrates the updates:

 

Assessment Structure

Current Format 2 modules, 2 examinations
Updated Format 1 module, 1 examination
(syllabus coverage from current Module 1 & Module 2)

Exam Format
One 3-hour examination comprising:​

Section A
60 multiple choice questions (MCQs) – 60%​

Section B
2 to 4 caselets: 20 MCQs – 40%​

Pass Mark:  60%

 Time Limit

A candidate must pass the Updated BRM module within 1 year.

Fees* 

Fee Current BRM Updated BRM
New registration RM1,219 per module RM2,438
Exam re-sit RM265 per examination RM530

*Fees are inclusive of 6% SST.

Transition Pathway for Existing Candidates

Scenario Transition Pathway NEXT STEP
Completed 0 modules

 

Option 1
Convert to Updated BRM

 

Option 1

  1. Submit Withdrawal Form to Member Services at enquiries@aicb.org.my to withdraw from the current BRM qualification.
    (Click here to download the Withdrawal Form)
  2. Your request will be processed, and you will be withdrawn from the current BRM qualification.
  3. Submit a new application for updated BRM via Member Portal once the updated BRM enrolment opens.
Option 2
Continue with current BRM and complete the 2 modules within the transition period
Option 2
Continue with the current qualification
Completed Module 1

OR

Exempted from Module 1

Complete Module 2 of current BRM within the transition period Continue with the current qualification

The table below summarises the key dates for the Updated BRM:

Last intake for new BRM candidates March 2021 examination
Closing for new BRM applications 30 November 2020
Closing for BRM examination registrations 30 December 2020
Transition period to complete BRM September 2020 examination – November 2021 examination
Last BRM examination sitting for existing candidates November 2021 examination
Updated BRM first intake May 2021 examination
Updated BRM enrolment opens 1 December 2020