Measuring, stress testing and reporting risk

Module 05 / 5 · 70 min

Use RCSA, KRIs, basic VaR and a combined stress test, feed the results into capital and recovery planning, and report clearly to the board and the NBE.

In this module you will learn to

Run a risk and control self-assessment and compare inherent and residual risk
Compute and interpret a basic one-day and ten-day VaR
Design and run a combined depreciation, drought and regional conflict stress test
Link stress results to capital planning and SBB/93/2025 recovery plans
Present a clear risk report to a board risk committee and act on findings

Built on

Erudite Africa course specification: 4.b Risk Management Framework, Levels 1 and 2 (October 2026)
Erudite Africa: Training Module, Ethiopian Context, programme overview and regulatory register (October 2026)
NBE Risk Management Guidelines (May 2010)
NBE directives as listed in the lessons: SBB/87/2024, SBB/88/2024, SBB/90/2024, SBB/91/2024, SBB/93/2025, SBB/95/2025, SBB/96/2025, FXD/01/2024, NBE/INT/13/2026
National Bank of Ethiopia Proclamation No. 1359/2025; AML/CFT Proclamation No. 780/2013 and Personal Data Protection Proclamation No. 1321/2024 (as reported)
International frameworks: COSO ERM (2017), ISO 31000, Basel Core Principles for Effective Banking Supervision

Examples and organizations are fictional. Apply your own organization's approved policies.