A.
Important Tables
Ch 1- Intro to Risk
1.5
1.9
1.13
1.19
Imp Def'n of Risks
Illustrative Corporate Risks (Risk Areas mapped w/ Corp Funcitions)
Risk Score- Likelihood & Consequence
Controllable & Uncontrollable Internal/ External Ffactors
2.6
2.16
2.19
2.21
2.23
2.25
2.26
2.28
Likelihood (Probability) & Impact 3x4 matrix
Generic Sources of Risk Matrix (Governance, Finance, Operational, Preparedness, Integrity)
Organisational Risks (Strategic, Operational, Reporting, Compliance)
Risk Actions (Avoid, Reduce/ Manage, Trf/ Share, Accept)
Levels of Risk Impact (Impact Areas & Nature of Impact)
Example of Risk Level matrix
Example of Risk Rating Table
Levels of Risk Impact (Stakeholders & Nature of Impact)
3.2
3.6
3.8
3.12
Risk & Risk Mgmt - views & def'n
Effective Risk Mgmt Process
Risk Mgmt Checklist (ISO 31000)- Risk Archit'ctre, Risk Strategy, Risk Protocols)
Techniques for Risk enabled & managed organisations
Ch 2- Sources & Eval'n of Risk
Ch 3- Risk Mgmt
Ch 4- Eval'n of Risk Mgmt Strategies
4.3 Risk - Strategy alignment tables (Strategic obj, Strategic measures, Risk Factor, Control Measure)
4.6 Pictoral depiction of Governance, Risk mgmt & IC
Ch 5- Risk Model
5.9 Stress Test Table (Use, Descr'ptn, Key Challenges)
5.10 Stress Test Process
5.17 Country Risk Analysis (Quantitative Tools)
Ch 6- Credit Risk Measurement & Mgmt
6.11 Cal'cn of Credit Risk Component (Basel II)
6.12 Qualitative Techn'ques of Credit Risk Mgmt
6.16 Credit Rating Scales
6.18 Special Mention A/c (SMA) categories
6.35 FICO model scores
Ch 7- Risk associated w/ Corp Gov'nce
7.1 Governance Risks
7.13 Risk Mgmt Disclosures (Scenario, Associated Principle Risks, Descr'ptn)
Ch 8- ERM
8.2 ERM Def'n
8.7 Risk Maturity- Characteristics @ diff levels
Ch 9- Operational Risk Mgmt
9.8
9.12
9.18
9.28
9.18
3 lines of Defence (Chart)
Risk Grading/ Rating (example of operational risk)
Format of RCSA (Indicative Details)
Operational Loss event (BASEL II)
Format of Report to ORMC (or Board/ other committee)
9.16
9.19
9.21
9.36
9.37
9.41
Theories- IRP, PPP, IFE
Types of exposures- Translation, Operating, Transaction
Effects of LC fluctuations on Co.'s Eco Exposure- Cash inflow & outflow
Difference b/w Futures & Forward Contracts
Difference b/w Options & Futures
Exposure Mgmt Strategies
SFM- Forex
B.
ICAI Questions
Source
No.
Rev
Topic Covered
Remarks
ICAI(Web/ M18 MTP)
CS-1

Design Risk Scenario (Bank Case Study) - 10 Identified Risks
1. Risk Scenario Title
2. Scenario description
3. Impact of scenario
4. Current measures to manage risks
Deductive + Direct Answers from Ch 1 & Ch 3
ICAI risks differ from what you identified.
Luckily, since only 5 risks are required to be stated → State only
those risks which you have absolutely certainty over.

Bucketing and Likelihood of above risks
← may come in handy
CS-2






(i) Identify the Risks that may be possible and their nature.
(ii) Scaling of these identified risks based on ICAI Guide on Risk Based Internal Audit.
(iii) Any three to four approaches to identify and assess the risk.
(iv) Course of action to be followed to treat these risks.
(v) Matters on which Risk Governance Framework can define a policy statement.
(vi) Risk Maturity Level and reasons for the same.
Deductive Answer from Ch 1 (ICAI loves Operational Risk)
Based on above (when in doubt→ use score 4)
Direct Answer from Ch 2
Direct Answer from Ch 2
Direct Answer from Ch 7
Deductive Answer from Ch 8
CS-3

1.
2.
3.
4.
Direct Answer from Ch 2
Deductive Answer from Ch 5
Direct Answer from Ch 9 of SFM
CS Based

SWOT Analysis
Risk Definitions & Explanations
Tackle the exposure of difference in exchange rates b/w sale and invoice collection
Efficacy Internal Financial Control (IFC)
May 18 Exam Paper
CS-1
Financial Ratios
Formulae based computations
CS-2
Bayes Theorem,NPV,GM
Big Data Analytics w.r.t Money Laundering Operations
VaR and Expected Shortfall,Monte carlo Simulation
CDS v/s Credit
Insurance, Five Cs of Credit
Old Ch 4 of RM
Direct Answer from Ch 9
Direct Answers from Ch 5 & Ch 2
Direct Answer from Ch 6
Direct Answer from Ch 6
CS-3
Key Risks and Measure to Mitigate Risks in CS
Deducitve + Direct Answers from Ch 1 & Ch 3
(2 Alt Presentations given)
Portfolio Risks
Deductive (Conceptual) + Ch 6 for reference
CS-2
A. Types of risk faced by XYZ Co, steps to mitigate
B. Cyber Risks & Cyber Crimes
Deductive Answer from Ch 1
Deducitve + Direct Answers from Ch 9
CS-3
A. Country Risk & Qualitative tools to assess same
B. Credit risk mitigation
C. Risk Governance (Sound Practices by BoD & AC)
D. Probability Computation (Bayes Theorem)
Direct Answers from Ch 1 & Ch 9
Direct Answer from Ch 6
Direct Answer from Ch 7
Old Ch 4 of RM

August 18 MTP
CS-1

Nov 18 Exam Paper
CS-1

CS-2
Report to Board
1. Type of Risk ,Impact of Risk, Mitigation of Risk
2. Preventive measures while engaging Professionals for Stat Compliances
Deductive + Direct Answers from Ch 1 & 3
← May come in handy. Purely Conceptual.
1.
2.
3.
4.
5.
6.
Direct Answer from Ch 2
Old Ch 4 of RM
Direct Answer from Ch 7
Direct Answers (Refer KL index + AS)
Direct Answer from Ch 6
Direct Answer from Ch 3
OECD Principles for effective implementation of risk management.
Variance & Std Deviation
Functions of Risk Mgmt
Definitions
Basic principles for assessment of Credit Risk
Holistic Risk Mgmt Framework
CS-3

Risk Grading/Rating, Classify Risk& Report(EVEN THOUGH TERM IS "RISK RATING"→ USED RISK BUCKETING)
→ Stagnant business growth resulting from competition from other airlines
→ Aggressive fleet expansion leading to over-capacities
→ Safety Standards resulting in Crash/ disastrous hijacking
→ Volatile Oil Prices
Deductive (Highly Judgmental) from Ch 9
High Impact – Low Probability
High Impact – High Probability
Low Probability – High Impact
Low Probability – Low Impact
CS-1

Key Risks Identification & Report while AC reviews RMF
Highly Judgmental from Ch 1
Risks Covered: (Some new/ not easily spotted from SM)
- Economic Risk
- Competitor Risk
- Project Execution Risk
- Human Resource Risk
- Foreign Exchange Risk
- Interest Rate Risk
- Commodity Price Risk
CS-2
Stakeholders and impact
Impact areas and nature of impact
Risk Treatment Options
Assess Risk Maturity Levels of Co
Techniques to track the process of Risk Mgmt
Types of Political Risk exposure
Benefits from Distributed Ledger Technology
Quantitative tools for Country Risk Assessment
Direct Answer from Ch 2
Direct Answer from Ch 2
Direct Answer from Ch 2
Deductive Answer from Ch 8
Direct Answer from Ch 3
Direct Answer from Ch 5
Direct Answer from Ch 9
Direct Answer from Ch 5
CS-3
Key Risks and Measure to Mitigate
Deducitve + Direct Answers from Ch 1 & Ch 3
(2 Alt Presentations given)
CS-1
Measures to Mitigate Risks & Sound Practices
"Loss would occur, or no loss would occur" - Explain this risk & other such types
Qualitative tools for Country Risk Assessment
Challenges while developing the risk management and oversight practices
Analysis of Cash Flows (2 Types)
Expected Monetary Value
Direct Answer from
Direct Answer from
Direct Answer from
Direct Answer from
Direct Answer from
Simple Calculation
CS-2
Key principle that would underpin risk appetite
Credit Rating meaning. List 6 CRA in India. Describe Credit Rating Process.
How much risk to take. What risks arise in Risk Assessment w.r.t data furnished in the Peer Group Analysis
Direct Answer from Ch 3
Direct Answer from Ch 6
Direct Answer from Ch 7 (PFATRAGIC) "w.r.t Data" → Psych!
CS-3
Points considered w.r.t data migration in new ERP Deployment
BOD- Issues Considered & Questions asked in addressing Present/ Future Risks
Role of Risk Assessment w.r.t. Financial Reporting
Invoicing in Domestic Currency to hedge exposure risk
Indirect Risks Company may be facing
Types of countermeasures for vulnerabilities faced while assessing/ evaluating Risks
Country Risks w.r.t Polticial Changes
Risk Mitigation Process w.r.t Letter of Credit Facility
Direct Answer from Ch 9 (Migration Risk)
Direct Answer from Ch 7
Direct Answer from Ch 7
Direct Answer from Ch 9 of SFM (FOREX)
Judgemental- Related to Case Study
Direct Answer from Ch 2
Direct Answer from Ch 5
This is Funded Credit. Direct Answer from Ch 6
March 19 MTP
May 19 Exam Paper
Ch
Ch
Ch
Ch
Ch
7 (Focused on Risk Mgmt Committee)
1
5
7
6
October 19 MTP
CS-1
Financial Ratios
Formulae based computations
Risk Grading/Rating, Classify Risk & Report
Deductive (Highly Judgmental) from Ch 9
Key Risks affecting Company
Highly Judgmental. Ch 1. NEW RISKS GIVEN IN SUGGESTED.
CS-4
Report to Board - Type of Risk ,Impact of Risk
Deductive + Direct Answers from Ch 1 & 3
(ICAI Answer is extremely short)
CS-5
Ques on RBI- Credit Default Swaps ,Diff b/w credit insurance and CDS, Estimating Credit Default probability
Direct Answer from Ch 6
CS-1
Methodology that you would suggest for analyzing the data on Vehicular Movement
NPV,Profitability Index calculation
Explain areas of improvements suggested by the consultant in Case Study
Indirect Answer from Ch 9 (Needed to link Machine Learning)
Forumulae based - IPCC Chapters
Conceptual Based → Needed to explain data
Type of Risks Faced
Sample Risk Register
Benefits of ‘Improved risk measurement and Management' to Mgmt
Deductive Answer from Ch 1
ICAI FORMAT IS IMPORTANT
Direct Answer from Ch 8

Bayes Theorem (Probability)
Risk Maturity Levels and their Key Characteristics
Economic risks that could be faced
Old Ch 4 of RM
Direct Answer from Ch 8
Concept based



Corporate Governance referring to OECD guidelines
Risk mgmt initiated by the Board/Mgmt to prevent frauds and financial crimes
How can Credit Risk Mgmt be upgraded to ensure risk of default is kept to the minimum.
Deductive Answer from Ch 7
Deductive Answer from Ch 9
Deductive Answer from Ch 6
Define Pure Risk & Insurance's Importance
Why operational risk mgmt is important
Role and responsibility of the Risk Manager
Direct Answer from Ch 1
Direct Answer from Ch 9
Direct Answer from Ch 2

Inputs on Issues raised by Risk Manager (points)
Highly Judgemental- Concept Based

Main Risks + Components while Lending
Amount of Loan that's justified keeping the various factors
Expected Loss (Loss Given Default)
MPBF Calculation as per Tandon Committee (Current Ratio = 1.33)
Deductive Answer from Ch 6
Case Study based. As per individual judgement.
Simple Calculation
Formula Based from Ch 6

Type of Risks Faced
Sample Risk Register
Benefits of ‘Improved risk measurement and Management' to Mgmt
Deductive Answer from Ch 1
ICAI FORMAT IS IMPORTANT
Direct Answer from Ch 8
Corporate Governance referring to OECD guidelines
Risk mgmt initiated by the Board/Mgmt to prevent frauds and financial crimes
How can Credit Risk Mgmt be upgraded to ensure risk of default is kept to the minimum.
Deductive Answer from Ch 7
Deductive Answer from Ch 9
Deductive Answer from Ch 6
Define Pure Risk & Insurance's Importance
Why operational risk management is important
Role and responsibility of the Risk Manager
Direct Answer from Ch 1
Direct Answer from Ch 9
Direct Answer from Ch 2

CS-2
CS-3

Nov 19 Exam Paper
CS-2

CS-3
CS-4
CS-5
May 20 MTP
CS-1
CS-2
CS-3
CS-4

CS-5
October-20 MTP
CS-1
Credit Due Diligence for recommending the subscription of the debenture issue
Market interest rate increased, action by investor. Risks faced.
Debt Service Coverage Ratio (DSCR) considering opening Cash Balance and Free Cash Flow
Deductive from Ch 6
Deductive from Ch 6
Formulae based (2G)
CS-2
Type of risks which Airplane Co is facing apart from Pandemic situation
In what ways Enterprise Risk Management can be classified. Explain linking to Case Study.
Paul Hopkins, risk is divided in what categories- Explain w.r.t Case Study
Deductive Answer from Ch 1
ICAI has given advantages of ERM here (from Ch 8)
Direct Answer from Ch 1 → Linking w/ Case Study req'd
CS-3
Major types of Country Risks which an MNC is exposed to → Link with Co,
Grading/Bucketing of Risks Identified
Explain and map SWOT
Direct Answer from Ch 5 → Linking w/ Case Study req'd
Deductive Answer from Ch 9 (ICAI treats exch fluct as L-L)
Direct Answer from Ch 2 → Linking w/ Case Study req'd
Explain circumstances → cause risk for reliable FR to the Co. + Enlist the stat prov w.r.t risk mgmt disclosures
Car Proposal Eval'n (Diesel or Petrol) + Non-Fin Considerations
Direct Answers from Ch 2 & Ch 7 → Linking w/ CS req'd
Concept based
Identify Risks + Risk Mgmt F/w
Risk Appetite + Risk Capacity
Identify (Country Risk) + Process to Manage same
Risk Mgmt F/W ICAI FORMAT IS IMPORTANT
Needed to identiify → Module coverage is req'd
Direct Answer from Ch 5
Specific Internal Controls for identified risks
Sensitivity Analysis for 10% adverse Δ in variables
Risk Actions and Risk Responses as per Risk And Control Matrix
Deductive Answer from Ch 9
Simple Calculation (IPCC)
Deductive Answer from Ch 2
Strategic Risks and Key Drivers for assessing risks in CS
Purpose of Risk Management Framework. Steps in Developing RMF
Analyze Country Risk
Case Study based → Conceptual
Direct Answer from Ch 2. (For Steps → ICAI has just modified
DIAMA to incorporate Reputational Risk)
Combined Answer from Ch 3 & 7 (Classic eg of mixing ans )
Direct Answer from Ch 5
Responsibility of CRO who is leader in implementing ERM
Challenges in implementing ERM faced by Co.
Relationship of ERM and BCP
VaR + Computation
Stress Testing + Linking with VAR
Direct Answer from Ch 7
Case Study based
Unique Answer
Simple Calculation
Direct Answer (Diagram) from Ch 5 + Conceptual Linking
RCSA Register
Altman Z score Practical Question
Importance of Risk Management
Deductive Answer from Ch 9
Simple Calculation (Ch 6)
Direct Answer from Ch 3
Difference between AI and ML
Challenges in implementing AI
Areas where AI and ML can be applied
KRI and RCSA
RCSA Owner and methods to implement RCSA
Processes to be followed before launching new products to address operational risk
Level of Defence identification
How to strengthen Operational Risk
Direct Answer from Ch 3
Conceptual + Case Study based
Conceptual + Case Study based
Conceptual with help from Ch 9
Direct Answer from Ch 9 (Language changed & structured)
Conceptual with help from Ch 9
Conceptual with help from Ch 9
Conceptual with help from Ch 9

CS-4

CS-5


Nov 20 Exam Paper
CS-1
CS-2

CS-3

CS-4
CS-5






Reputational Risk and Steps to Assess Reputational Risk
Jan 21 Exam Paper
CS-1
Best practices to address the data privacy and cyber-security risks
Risk management techniques
Integrating of risks in the strategic planning process
Direct Answer from Ch 9
Direct Answer from Ch 3
Direct Answer from Ch 9 (Language structured to link w/ CS)
CS-2
Risks faced by Co. in Pandemic (COVID 19)
Credit risk components
Diff b/w Scenario Analysis and Sensitivity Analysis
Deductive Answer from Ch 1
Direct Answer from Ch 6
Direct Answer from IPCC Ch 8
Recommending selection of individuals in ERC - 3 broad parameters to consider
Is there difference between ERM and BCP?
Narrative approach for risks that aren't easily quantified
5 key issues w.r.t outsourcing
Direct Answer from Ch 7
Conceptual (ICAI has given 2 alternatives)
Conceptual (ICAI has given 2 alternatives)
Direct Answer from Ch 9
Conceptual


Conditions where exchange rate changes may actually ↓ the risk of foreign investment
2 determinants of forex operating exposure + identify activity likely to address exposure + Implications of PPT
w.r.t forex operating exposure
Advant'gs & disadvant'ges of "financial hedging vis-à-vis operational hedges" and "Options contract vs Fwds"
Risk register- Purpose, coverage, & disadvantages

What are: risk capacity and risk exposure.
Conceptual + Reference from SM
Direct Answer from Ch 9 (ICAI has used key aspects in
consideration for cyber risk as answer)
Conceptual
Conceptual
CS-3


CS-4


CS-5
+
Explain diff b/w risk exposure, risk tolerance and risk appetite
Cyber-resilient organization: 2 definitive characteristics


+
reverse stress testing
Diff b/w performing the capital budgeting analysis from parent & project perspective
4 types of direct pay out cost if Co. suffers Cyber-Attack
Conceptual
Conceptual w/ help of SFM Ch 9
Conceptual + Direct from Ch 8 (2 Alternatives given by ICAI)
May 21 MTP
CS-1
w.r.t Consortium loan, give opinion on:
(i) Quantum of Liquid Assets in relation to the size of the company.
(ii) Profitability of the company reflecting the company’s age and earning power.
(iii) Operating Efficiency apart from tax and leveraging factors.
(iv) Market dimensions that can show up security price fluctuations as a possible red flag.
(v) Total Asset Turnover.
Simple computation of Altman Z score. Needed to know the
components to link the formula.
CS-2

Grading/ Bucketing of Various Risks
Deductive (Highly Judgmental) from Ch 9
CS-3

Key Risks affecting Company
Highly Judgmental. Ch 1. NEW RISKS GIVEN IN SUGGESTED.
CS-4
Aspects to consider before outsourcing biz
Main issues that surface from technology risk from an Auditor’s /Operational Risk Professional’s perspective
Direct Answer from Ch 9
Direct Answer from Ch 9
CS-5
What should chairman & BoD do
Circumstances in which risk can arise or changed
Direct Answer from Ch 7 (7.3, ICAI didn't relate to CS)
Direct Answer from Ch 2
CS-5
How big data analytics help improve existing processes in Anti- Money Laundering operations
Diff b/w CDS & credit insurance.
5 C’s of Credit which bank will review while giving loan
Direct Answer from Ch 9
Direct Answer from Ch 6
Direct Answer from Ch 6
CS-6
What should chairman & BoD do
Direct Answer from Ch 7 (7.3, ICAI didn't relate to CS)
Case Study based (They have already identified risk- you just
need to map it to situation in Q)
Direct Answer from Ch 5
Case Studies Digest
Governance Risk involved in CS
Shareholding of FII is 10.4 % - identify risk & tools to mitigate

CS-15
CS-16
Design Risk Scenario (Video Content Platform Startup CaseStudy)

Type of Risks Faced
Establishing an IT enabled OS including cyber crime prevention & Risk Mgmt and Governance system.
Deductive + Direct Answers from Ch 1 & Ch 3
ICAI risks differ from what you identified.
Luckily, since only 4 risks are required to be stated → State only
those risks which you have absolutely certainty over.
Highly Judgmental. Ch 1. NEW RISKS GIVEN IN SUGGESTED.
Mashed up Direct Answers from Ch 9 & 7 (Structured a bit
differently)
CS-17



(i) Identify the Risks that may be possible and their nature.
(ii) Scaling of these identified risks based on ICAI Guide on Risk Based Internal Audit.
(iii) Action plan to treat the risks including monitoring mechanism.
Deductive Answer from Ch 1 (ICAI loves Operational Risk)
Based on above (when in doubt→ use score 4)
Highly Judgmental. Unique Answer.
CS-18


Potential risk associated with the project (EOU)
Suggest Risk management framework
Deductive Answer from Ch 1 (ICAI loves Operational Risk)
Unique Answer