Taxmann’s Risk Management by IIBF – Edition 2026.

Risk Management is the official courseware prescribed by the Indian Institute of Banking & Finance (IIBF) for Paper II of its examination in Treasury, Investment and Risk Management (DTIRM). Comprehensively revised for the 2026 Edition, this volume builds a complete, working command of how modern banks identify, measure, price, and control risk—from board-level governance down to the arithmetic on a dealer’s blotter.

What sets this book apart is its practitioner’s orientation. Across four modules and 25 chapters, it develops each topic from first principles and then carries it through to fully worked numerical solutions, decision tables, and regulatory applications. You don’t just learn what Value at Risk (VaR) is; you compute it.

Key Modules & Concepts Covered

The courseware spans the full risk-management landscape, sequenced so that each module builds upon the last:

• Module A | Risk Management Framework: Explores why banks are special, the taxonomy of banking risks, Asset-Liability Management (ALM), liquidity risk, and Enterprise Risk Management (ERM).

• Module B | Basel & RBI Guidelines: The evolution of the Basel Accords through Basel III. Covers capital charges for credit, market, and operational risk, ICAAP, stress testing, Prompt Corrective Action (PCA), and Risk-Based Internal Audit.

• Module C | Market Risk (The Quantitative Core): The center of gravity for the book. Dive deep into FX drivers, fixed income bond pricing (with nine price-sensitivity properties), and risk measurement (PVBP, Modified Duration). Master VaR methodologies (Parametric, Historical, Monte Carlo) and transition to Expected Shortfall and the FRTB.

• Module D | Derivatives & Hedging: The instruments used to manage the risks measured in Module C. Detailed coverage of Forwards (FRAs), Futures, Options, and Swaps (with worked cash-flow computations).

Self-Contained Exam Architecture

Engineered for effective self-study without classroom support, every chapter follows a consistent, learner-friendly template:

• Structure: Objective → Introduction → Numbered sub-sections → Worked Illustrations → Conclusion → Summary → Key Definitions.

• Exam Prep: Most chapters close with objective-type multiple-choice ‘Terminal Questions’ and answer keys that mirror the actual DTIRM examination format.

Who Should Buy This Book?

• DTIRM Candidates: The primary, intended readership preparing for Paper II of the IIBF examination.

• Treasury Professionals & Dealers: Front-, middle-, and back-office staff who need a rigorous reference on market risk, FX, and derivative pricing.

• Risk Managers & CRO Teams: Professionals building or running enterprise-wide risk, ALM, and limit frameworks.

• Compliance & Finance Officers: Essential for internal auditors working with risk-based internal audit, ICAAP, and RBI requirements.

About the Author

Ambarisha Nanda Authored and vetted by Mr. Ambarisha Nanda, Former Chief General Manager of United Bank of India. Mr. Nanda brings decades of senior industry experience, seamlessly blending regulatory rigor with real-world banking judgment. This volume is exclusively published by Taxmann for the Indian Institute of Banking and Finance.

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