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Course Outline
An introduction to risk
- Defining risk and the rationale for bank risk management
- Is risk solely a negative experience?
- The global nature of banking and associated risks
- Introduction to major risk types in banking
- Consequences of failing to manage bank risks
- Risk Appetite
- Risk Management
Case study
International risk regulations
- Understanding risk-based regulations
- Linking risk with capital requirements
- Concept of capital adequacy
- Key international regulations
- Basel Accord
- Sarbanes-Oxley
Case Study
The Basel Accords
- The evolution of international banking risk regulation
- Objectives of banking risk management
- Challenges of global regulatory implementation
- Basel I Accord and the Market Risk Amendment
- The Basel II Accord
- Capital requirements under Basel II
- Basel 2.5 and Basel III
- The leverage ratio
- Countercyclical capital buffer
- Systemic interconnectedness
Case study: Capital under Basel III
Market risk
- Defining market risk
- Market activities and the rationale for trading
- Primary market instruments
- Cash instruments
- Derivative instruments
- Managing market risk
- Measurement and management of market risk
- Market risk regulation
- Basel II
- Basel III
Case study: The consequences of mis-managing market risk – JP Morgan
Credit risk
- Defining credit risk
- Credit products in the international market
- Mitigating and managing credit risk
- The credit process
- The credit analysis process
- Portfolio Management
- Credit risk measurement
- Credit risk regulation
- Basel II
- Basel III
Case study
Operational risk
- Defining operational risk and its significance
- Risk of loss, expected versus unexpected losses
- Operational risk event types
- Three lines of defence
- Operational risk management
- Operational risk management framework
- Where to begin?
- Reporting lines for operational risk management
- Scope of operational risk management
- Measuring and assessing operational risk
- Operational risk regulation
- Basel II
- Basel III
Case study: UBS
Liquidity risk
- Defining liquidity risk
- Types of liquidity
- Consequences of inadequate liquidity management
- Sources of liquidity
- Measuring liquidity
- Stress testing
- Managing liquidity
- Liquidity risk regulation
- Basel II
- Basel III
Case study:
Asset and Liability Management and other risks
- Defining Asset and Liability Management
- ALCOs and Treasuries
- Banking book versus Trading Book
- Interest rate risk in the banking book (IRRBB)
- Measuring and managing IRRBB
- Contractual versus behavioural approaches
- Stress testing
- 'Other' risks
Case study:
Supervision & disclosure
- Defining supervision and disclosure
- Home/host supervisory cooperation
- The Internal Capital Adequacy Assessment Process (ICAAP)
- Supervision and disclosure under Basel
- Changes introduced by Basel III
Case study:
Defining Enterprise Risk Management
- Defining ERM
- Benefits of ERM
- The ERM process
- The risk management function
- Portfolio management
- New product development
- Basel Committee guidance
- Commonly adopted frameworks
Case study
Integrated risk management
- Integrating risks across the bank
- Risk committees
- Risk policies
- Risk recognition and assessment
- Aggregating risk across types
- Economic capital
- Interaction between risk types
Case study
Corporate Governance
- Defining corporate governance
- Stakeholders and potential conflicts
- Benefits of strong corporate governance
- Evolution of corporate governance: Cadbury, Walker, Hicks reports
- External perspectives on Corporate Governance (rating agencies, regulators)
Case study: Can a bank be "Too big to manage"?
Good corporate governance
- Corporate structures
- The role of non-executive directors
- Techniques and strategies
- Committees and management practices
- Communication
- The role of senior management
- Internal framework of Corporate Governance
- OECD and Basel guidance
Case study:
Risk Governance
- Risk management governance
- Fostering a culture of risk awareness
- Implementing a risk culture
- Risk management committees
- Governance, risk and compliance
Case study:
The future
- The new regulatory regime
- Implications for the banking industry
- Implications for regulators
- Priorities in the global banking regulatory agenda
- Future flashpoints
35 Hours
Testimonials (2)
Fun to talk
Jihan Fadila - BAF
Course - Root Cause Analysis (RCA) for Internal Audit
casual conversation supported by specific examples