Course Outline
The course will examine key practical insights in banking from a prudential risk perspective. The chief focus will be relationships between risks on the balance sheet, profitability, and a new plethora of regulatory requirements. We will also demonstrate new approaches to market risk, credit risk, liquidity risk and operational risk as dictated by the Basel Committee on Banking Supervision. Case studies will be explored to assess what constitutes strong (and weak) governance and control frameworks.
Benefits of Attending
- Understand the principles governing the identification and classification of risk
- Be able to apply the principles of risk measurement (credit, liquidity, operational, market) to measure specific risks and understand how these risks interact
- Build a deeper comprehension of the regulations governing the measurement and management of the various risks that banks face
- Learn how new standardised approaches in both credit and market risk are replacing advanced approaches – and why
- Learn how Basel I led to Basel II and why Basel II remains largely in force – even now (2022)
- Learn how Basel III and IV came about, what they entail and why they are important.
Course Background
Sound background knowledge of a bank’s risk management principles and processes is essential in the current environment. By assessing high-level principles embedded in an Enterprise Risk Management which spans credit risk, counterparty risk, market risk, liquidity risk and operational risk, we will explore how these risks are identified, reported and managed.
With huge increases recently in both capital and liquidity, we will examine what lines of businesses will be profitable (and which unprofitable) on a risk-adjusted basis. We will examine new market risk rules including FRTB and IRRBB assessing the methodology and the impact on the business model. Finally, we will scrutinise the new capital and liquidity buffers with a special focus on stress testing. Case studies will be used throughout as well as extensive use of Excel-based models and spreadsheets to explain key concepts and demonstrate the interaction between risk components.
Who Should Attend?
This is a beginner to an intermediate level workshop which will train all bankers who require a deeper understanding of risk identification, measurement and management from a regulatory perspective, such as:
- Risk managers
- Product controllers
- Compliance officers
- Treasury
- Traders
- Credit officers
