Operations Risk Management Module (Intermediate)
In every business operation, there is an internal and external environment that has placed hazards for business operations. That is referred to as inherent risks of doing business. However, Operational risk management refers to a methodology that helps in:
- Firstly, risk assessment
- Secondly, risk decision making
- Lastly, implementation of risk controls
Further, this results in acceptance, mitigation, or avoidance of risk which is highly integral to businesses.
Knowledge Enhancement
Operations Risk Management Module helps you to cover various areas and concepts to have a better understanding. In this you will:
- Firstly, get in-depth knowledge about operations risk management.
- Secondly, learn how to identify operations risk issues.
- Lastly, to understand approaches for mitigating operational risk issues.
Target Audience
Operations Risk Management Module is best suitable for:
- Firstly, Students
- Secondly, Finance Professionals
- Thirdly, Employees with banks and financial services sector
- Lastly, Anybody with having an interest in this area
Operations Risk Management Module: Exam Details
NCFM has online and self-study based exams conducted across India. All the exams are available only in the English language. During the exam, an Open Office Spreadsheet will be provided with an allowance for all types of calculators during the test. However, there will be a 0.25% negative marking for any incorrect answers. Moreover you get 120 minutes to complete the Operations Risk Management Module Exam Questions. Also, you need to secure 6% in the Operations Risk Management Module Questions to achieve this certification.
For Operations Risk Management Module:
- Firstly, there are 75 objective type questions in the exam with a time duration of 120 minutes. Here, objective type means that for every question, you will find four / five alternative answers from which you have to select the correct one.
- Secondly, to pass the Operations Risk Management Module you have to score a minimum of 60%.
- Thirdly, the Operations Risk Management Module will cost Rs.2006/ inclusive of GST. Lastly, the NCFM certifications have a validity of 5 years.
Exam Registration
For the NCFM exam, registration can be done online by accessing the link ‘Online Registration’. This is available under Education. After opening the link, click on Certifications and then, Register / Enroll. A unique NCFM registration number will be given after completing the registration process along with a user id and password. This NCFM registration number is used while enrolling for any module. Alternatively, a confirmation will be sent both on your email id and mobile number provided during registration. After logging in you can:
- Firstly, have access to make and complete the payment for the NCFM exam.
- Secondly, enroll for the test.
- Thirdly, update the address details.
- Lastly, check the status of the study material. And, view the certificates
Operations Risk Management Module Course structure
NCFM provides a course outline for the Operations Risk Management Module to help in understanding the concepts in a sequential manner. This include:
1. Introduction to Operations Risk
- Risk & Uncertainty
- The Financial Sector
- Risk Types
- Operations Risk
- Operations Risk Management
- Recruitment & Training
- Then, Workflow Design
- Workflow Documentation
- Delegation of Authority
- Independent Internal Audit
- After that, Independent Compliance Function
- Independent Risk Management Function
- Systems Audit
- Corporate Governance
- Then, Whistle Blower Policy
- Risk Management Culture
2. Trades in Secondary Market
- Trade Intermediaries
- Stock Broker
- Trading Member (TM)
- Clearing Member (CM)
- Authorized Persons
- Sub-brokers
- Screen-Based Trading System
- NEAT System
- Corporate Manager
- Branch Manager
- Dealer
- Order Management
- Entering Orders
- Modifying Orders
- Canceling Orders
- Order Matching
- Trade Management
- Risk Management in Trades
3. Clearing & Settlement of Trades
- Transaction Cycle
- Clearing
- Settlement
- Pay-in of Funds and Securities
- Pay-out of Funds and Securities
- Settlement Risks
- Counter-Party Risk
- System Risk
- Risk Management
- Investor Protection
4. Workflow Design
- Front Office, Middle Office & Back Office
- Risk Events
5. BASEL Overview
- Bank for International Settlements (BIS)
- Basel Accords
- Firstly, Basel I
- Secondly, Basel II
- Thirdly, BASEL III
- Detailed Loss Event Type Classification
6. Basel II: Operational Risk
- The Three Methods
- Basic Indicater Approach
- The Standardised Approach
- Advanced Measurement Approaches
- A mix of Three Methods
- SIGOR (June 2011)
- Risk Appetite & Risk Tolerance
- ORMF & ORMS: Verification & Validation
- Embeddedness
- Operational Risk Data
- Gross Loss & Net Loss
- Dates
- Distributions
7. Basel: Operational Risk Principles
- Background
- The Principles
8. Basel: Audit
- External Audit
- Audit Committee
- Internal Audit
For More: Check Operations Risk Management Module FAQs
NCFM Procedures
NCFM procedures help candidates to understand the pattern of the exams. And, it makes it easier by providing all the details in a stepwise manner. Some of them include:
Making Payment
Payment can be made online by accessing through online NCFM login. Then, under Education click Certifications and start online registration or enrollment. You must know that the validity of the NCFM test fees is changed from 180 days to 90 days from the date of receipt of payment. That is to say, it is necessary to enroll for the NCFM test within 90 days from the date of receipt of payment failing. However, fees once paid can not be refunded.
Test Taking Procedure
- Firstly, there are designated NSE test centers for giving exams. The test centers can be selected at the time of enrollment.
- Secondly, the test center has a policy in which candidates are required to reach the exam center 30 minutes prior to the test time.
- Thirdly, an original Photo ID that can be a PAN card, Driver’s License, Passport, Employee ID, Voter’s ID card, or Student ID card, is required for the verification on the exam day.
- Next, a backup sheet and rough sheet(s) will be provided to the candidates, and also they can bring the scientific calculator and a pen during the test.
Uploading Photo
Candidates can upload photos using the ‘Upload Photo’ link which is available in their NCFM online login. The uploaded photo should have passport size (3 X 3 cms or 1 X 1 inch or 150 X 180 pixels). And, it should be in JPEG format with a size below 30 KB.
Issuing Certificate
Candidates will receive the certification for modules after passing the exam at the test center itself. However, those failing the exam will receive a scorecard at the test center. The candidates need to ensure that they must collect their results before leaving the test center. Further, candidates can view the certificate online under the link ‘Query/Report’ available in their NCFM online login portal.
Study Guide: Operations Risk Management Module
Getting Familiar with Exam Objectives
For the Operations Risk Management Module exam, NCFM provides the course outline that has topics divided into various sections and subsections. This course outline helps candidates to understand the concepts more accurately and start their preparation in a sequential way. The topics for the Operations Risk Management Module includes:
- Firstly, Trades in Secondary Market
- Secondly, Clearing & Settlement of Trades
- Thirdly, Workflow Design
- Next, BASEL Overview
- After that, Basel II: Operational Risk
- Then, Basel: Operational Risk Principles
- Lastly, Basel: Audit
NSE Knowledge Hub
NSE knowledge hub provides personalized and community-based learning with an AI-First and Mobile-First ecosystem. This knowledge hub is powered by a unique Artificial Intelligence (AI) powered learning platform to help in financial learning. Moreover, this supports academic institutions in preparing advanced future-ready talent for the financial services industry. Using NSE Knowledge Hub candidates can:
- Firstly, become a part of a growing learning community.
- Secondly, have access to unlimited content and resources.
- Thirdly, get assistance from experts in this field.
- Lastly, learn from anywhere.
NSE knowledge hub includes methods such as:
- Content Discovering
In this, you will get familiarity and understanding with the topics like banking, insurance and finance in which you can discover content in various domains of finance.
- Continuous learning
This provides formal and informal learning that contains hours of arranged content tailored to the individuals areas of interests and goals.
- Deep skills
This provides deep skilling pathways at a marketplace with well-known providers of courses, assessments, labs and credentials.
NSE Study Material
NSE provides study material for its module exams that includes a workbook. This workbook can only be issued after making payment for the module. You can download by logging into your account from the E-Library option. However, NSE also offers candidates to buy these Workbooks for NCFM modules by sending a request letter with a demand draft of Rs. 500/- per module per workbook. The request letter should have:
- Firstly, valid name of the candidates
- Secondly, the name of the module
- Thirdly, complete postal address
- Next, contact and demand draft details.
- Lastly, the demand draft should have the name of the candidate and module name on the reverse side.
Start Taking Practice Tests
Operations Risk Management Module Practice Exams can be beneficial while studying for the exam. This is because NCFM modules are self-learning so it is best to use practice tests for getting perfection in concepts. Moreover, assessing yourself will not only help you improve your answering skills but it will help you to improve your weak areas. Further, these Operations Risk Management Module Sample Questions will enhance your knowledge about the concepts of this module to get a strong revision. So, prepare well for the exam with Free Operations Risk Management Module Practice Test!
