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

Instructor: EDUCBA

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4 modules

Gain insight into a topic and learn the fundamentals.

11 reviews

9 hours to complete

Flexible schedule

Learn at your own pace

4 modules

Gain insight into a topic and learn the fundamentals.

11 reviews

9 hours to complete

Flexible schedule

Learn at your own pace

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.

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This course is part of the Indian Banking System & Risk Management Specialization

When you enroll in this course, you'll also be enrolled in this Specialization.

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Gain a foundational understanding of a subject or tool
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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 videosTotal 46 minutes

Understanding Risk in Banking9 minutes
Interest Rate Risk: Concept & Types6 minutes
Repricing Risk Explained5 minutes
Yield Curve & Basis Risk4 minutes
Embedded Option Risk5 minutes
Rate Sensitive Assets & Liabilities12 minutes
Gap Analysis – Introduction6 minutes

4 assignmentsTotal 60 minutes

Understanding Banking Risks10 minutes
Types of Interest Rate Risk10 minutes
Measuring Interest Rate Exposure10 minutes
Foundations of Bank Risk & Interest Rate Risk30 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 videosTotal 48 minutes

Positive Gap & Impact on NII6 minutes
Gap Calculation – Numerical Illustration8 minutes
Interest Rate Change Impact (Positive Gap)5 minutes
Negative Gap Analysis7 minutes
Cumulative Gap Analysis5 minutes
Limitations of Gap Analysis7 minutes
Duration – Concept & Measurement9 minutes

4 assignmentsTotal 60 minutes

Gap Analysis in Action10 minutes
Advanced Gap Evaluation10 minutes
Beyond Gap Analysis10 minutes
Gap Analysis & Interest Rate Risk Measurement30 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 videosTotal 58 minutes

Modified Duration & Price Sensitivity6 minutes
Duration Gap Analysis5 minutes
Managing Interest Rate Risk (ALM Tools)7 minutes
Liquidity Risk – Meaning & Sources6 minutes
Asset-Liability Mismatch & Liquidity8 minutes
Liquidity Risk Measurement9 minutes
Regulatory Liquidity Ratios (CRR/SLR/LCR)7 minutes
Liquidity Risk Management Strategies9 minutes

4 assignmentsTotal 60 minutes

Duration-Based Risk Measurement10 minutes
Understanding Liquidity Risk10 minutes
Measuring & Managing Liquidity10 minutes
Duration & Liquidity Risk Management30 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 videosTotal 49 minutes

Credit Risk – Fundamentals8 minutes
Credit Appraisal & NPA Management12 minutes
Operational Risk in Banks9 minutes
Foreign Exchange Risk – Basics5 minutes
FX Risk Measurement & Exposure7 minutes
FX Risk Management & Hedging7 minutes

4 assignmentsTotal 60 minutes

Credit Risk Essentials10 minutes
Managing Operational Risk10 minutes
Foreign Exchange Risk Management10 minutes
Credit, Operational & Foreign Exchange Risk30 minutes

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Instructor

Instructor ratings

(11 ratings)

EDUCBA

1,291 Courses294,837 learners

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EDUCBA

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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 16, 2026

Asset-Liability Management (ALM) risk arises when banks fail to properly match the maturity and interest rates of assets and liabilities, leading to liquidity or profitability issues.

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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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