OPERATIONAL RISK MANAGEMENT IIFB | MACMILLAN

Operational Risk Management 2026, published by the Indian Institute of Banking & Finance (IIBF), is a comprehensive and contemporary guide designed to build professional competence in managing operational and non-financial risks in the banking and financial services sector.

Aligned with IIBF’s mission of promoting education, certification, research, and continuous professional development, this book combines conceptual clarity with practical application, reflecting current regulatory expectations and global best practices in operational risk management.

The book traces the evolution of risk management in Indian banking and establishes a strong foundation by explaining the nature of risk, key operational risk concepts, and emerging challenges. It examines the regulatory response, the Operational Risk Management Framework (ORMF), and the integration of operational risk within Enterprise Risk Management (ERM).

Subsequent modules focus on governance and risk culture, risk identification and event classification, internal and external loss data analysis, self-assessment techniques, risk appetite formulation, and scenario analysis—essential tools for structured and forward-looking risk management.

The book also provides in-depth coverage of risk mitigation techniques, internal control systems, risk metrics such as KRIs, KPIs, and KCIs, change management, and operational risk measurement, including capital charge concepts and loss distribution models.

Recognising the growing importance of non-financial and emerging risks, later chapters address operational resilience, business continuity planning (BCP), incident management, third-party dependency risk, ICT and cyber security, and climate risk.

Designed for bankers, risk managers, auditors, compliance professionals, and finance practitioners, this book serves both as an examination-oriented resource and a practical reference. It enhances analytical capability, supports informed decision-making, and equips professionals to anticipate disruptions, manage vulnerabilities, and ensure continuity of critical financial services in an increasingly complex banking environment.