Analyze & Evaluate Banking Risks: ALM, Credit & FX
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Analyze & Evaluate Banking Risks: ALM, Credit & FX
This course is part of Indian Banking System & Risk Management Specialization
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What you'll learn
Analyze interest rate, liquidity, credit, and forex risks in banking.
Apply ALM, gap, and duration techniques for risk measurement.
Evaluate risk frameworks and hedging strategies for financial stability.
Skills you'll gain
- Banking
- Portfolio Risk
- Commercial Banking
- Bank Regulations
- Risk Modeling
- Regulatory Compliance
- Operational Risk
- Financial Controls
- Risk Control
- Compliance Management
- Financial Services
- Risk Management Framework
- Risk Analysis
- Lending and Underwriting
- Governance Risk Management and Compliance
- Credit Risk
- Enterprise Risk Management (ERM)
- Regulatory Requirements
- Risk Management
- Internal Controls
Details to know
April 2026
16 assignments
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There are 4 modules in this course
Develop the ability to analyze interest rate risk, evaluate liquidity risk frameworks, assess credit exposure, and apply foreign exchange risk management strategies in modern banking. This course equips learners with practical skills to measure and manage financial and non-financial risks using gap analysis, duration gap techniques, asset-liability management (ALM), regulatory liquidity ratios, credit appraisal tools, and hedging instruments.
Through a structured, module-based approach, learners progress from foundational risk concepts to advanced measurement models used in real-world banking environments. The course uniquely integrates interest rate risk, liquidity risk, credit risk, operational risk, and foreign exchange risk within a single cohesive framework aligned with banking practice and regulatory expectations. By completing this course, learners will strengthen their analytical decision-making skills, improve their understanding of bank balance sheet risk dynamics, and enhance career readiness for roles in banking, financial services, risk management, treasury, and regulatory compliance. This course is ideal for finance professionals, banking aspirants, and students seeking applied risk management expertise.
This module introduces the fundamental concepts of risk in banking, with a structured focus on interest rate risk, its types, and the measurement of rate-sensitive assets and liabilities. Learners build a strong conceptual foundation in repricing risk, yield curve risk, embedded option risk, and basic gap analysis techniques used in banking risk management.
What's included
7 videos4 assignments
7 videos•Total 46 minutes
- Understanding Risk in Banking•9 minutes
- Interest Rate Risk: Concept & Types•6 minutes
- Repricing Risk Explained•5 minutes
- Yield Curve & Basis Risk•4 minutes
- Embedded Option Risk•5 minutes
- Rate Sensitive Assets & Liabilities•12 minutes
- Gap Analysis – Introduction•6 minutes
4 assignments•Total 60 minutes
- Understanding Banking Risks•10 minutes
- Types of Interest Rate Risk•10 minutes
- Measuring Interest Rate Exposure•10 minutes
- Foundations of Bank Risk & Interest Rate Risk•30 minutes
This module explores practical application of gap analysis in managing interest rate risk. It covers positive and negative gap positions, cumulative gap analysis, limitations of traditional gap models, and introduces duration-based measurement to evaluate the economic value impact of interest rate movements.
What's included
7 videos4 assignments
7 videos•Total 48 minutes
- Positive Gap & Impact on NII•6 minutes
- Gap Calculation – Numerical Illustration•8 minutes
- Interest Rate Change Impact (Positive Gap)•5 minutes
- Negative Gap Analysis•7 minutes
- Cumulative Gap Analysis•5 minutes
- Limitations of Gap Analysis•7 minutes
- Duration – Concept & Measurement•9 minutes
4 assignments•Total 60 minutes
- Gap Analysis in Action•10 minutes
- Advanced Gap Evaluation•10 minutes
- Beyond Gap Analysis•10 minutes
- Gap Analysis & Interest Rate Risk Measurement•30 minutes
This module deepens understanding of duration gap analysis and transitions into liquidity risk management in banks. It covers funding liquidity risk, market liquidity risk, liquidity gap statements, regulatory liquidity ratios (CRR, SLR, LCR), and strategic liquidity risk mitigation practices.
What's included
8 videos4 assignments
8 videos•Total 58 minutes
- Modified Duration & Price Sensitivity•6 minutes
- Duration Gap Analysis•5 minutes
- Managing Interest Rate Risk (ALM Tools)•7 minutes
- Liquidity Risk – Meaning & Sources•6 minutes
- Asset-Liability Mismatch & Liquidity•8 minutes
- Liquidity Risk Measurement•9 minutes
- Regulatory Liquidity Ratios (CRR/SLR/LCR)•7 minutes
- Liquidity Risk Management Strategies•9 minutes
4 assignments•Total 60 minutes
- Duration-Based Risk Measurement•10 minutes
- Understanding Liquidity Risk•10 minutes
- Measuring & Managing Liquidity•10 minutes
- Duration & Liquidity Risk Management•30 minutes
This module addresses major non-interest financial risks in banking, including credit risk, operational risk, and foreign exchange risk. It examines credit appraisal, NPA management, operational risk controls, FX exposure measurement, and hedging strategies used in modern banking risk management.
What's included
6 videos4 assignments
6 videos•Total 49 minutes
- Credit Risk – Fundamentals•8 minutes
- Credit Appraisal & NPA Management•12 minutes
- Operational Risk in Banks•9 minutes
- Foreign Exchange Risk – Basics•5 minutes
- FX Risk Measurement & Exposure•7 minutes
- FX Risk Management & Hedging•7 minutes
4 assignments•Total 60 minutes
- Credit Risk Essentials•10 minutes
- Managing Operational Risk•10 minutes
- Foreign Exchange Risk Management•10 minutes
- Credit, Operational & Foreign Exchange Risk•30 minutes
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Reviewed on May 10, 2026
Regulatory guidelines by the Reserve Bank of India ensure that banks maintain proper risk management practices for ALM, credit, and FX risks.
Reviewed on Apr 30, 2026
Effective credit evaluation, diversification of loan portfolios, and strict monitoring help reduce credit risk
Reviewed on Apr 28, 2026
Poor credit assessment and weak risk management systems increase non-performing assets (NPAs), which weaken the banking sector.
Frequently asked questions
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When you enroll in the course, you get access to all of the courses in the Specialization, and you earn a certificate when you complete the work. Your electronic Certificate will be added to your Accomplishments page - from there, you can print your Certificate or add it to your LinkedIn profile.
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