Course Outline

An introduction to risk

  • What is risk and why should banks manage it?
  • Is risk just a downside experience?
  • The global nature of banking and risks
  • An introduction to the major types of risk in banks
  • The potential consequences of failing to manage risks in banks
  • Risk Appetite
  • Risk Management

Case study

International risk regulations

  • What are risk-based regulations?
  • Linking risk with capital
  • What is capital adequacy?
  • Key international regulations
    • Basel Accord
    • Sarbanes-Oxley

Case Study

The Basel Accords

  • The development of international banking risk regulation
  • The objectives of banking risks
  • The challenge of global regulations
  • The Basel I Accord and the Market Risk Amendment
  • The Basel II Accord
  • Capital 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

  • What is market risk?
  • Market activities and why trade
  • The main market instruments
    • Cash instruments
    • Derivative instruments
  • Managing market risk
  • Market risk measurement and management
  • Market risk regulation
    • Basel II
    • Basel III

Case study: The consequences of mis-managing market risk – JP Morgan

Credit risk

  • What is credit risk
  • Credit products in an 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

  • What is operational risk and why is it important?
  • Risk of loss, expected and unexpected losses
  • Operational risk event types
  • Three lines of defence
  • Operational risk management
  • Operational risk management framework
  • Where to start?
  • Who does operational risk management report to?
  • What is included under operational risk management?
  • Measuring and assessing operational risk.
  • Operational risk regulation
    • Basel II
    • Basel III

Case study: UBS

Liquidity risk

  • What is liquidity risk?
  • Types of liquidity
  • Consequences of not managing your liquidity
  • 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

  • What is Asset and Liability Management
  • ALCOs and Treasuries
  • Banking book verses Trading Book
  • Interest rate risk in the banking book
  • Measuring and managing IRRBB
    • Contractual verses behavioural
    • Stress testing
  •  ‘Other’ risks

Case study:

Supervision & disclosure

  • What is supervision and disclosure
  • Home/host supervisory co-operation
  • The ICAAP
  • Supervision and disclosure under Basel
  • The Basel III changes

Case study:

Defining Enterprise Risk Management

  • What is ERM?
  • The 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
  • Adding risk across risk types
  • Economic capital
  • Interaction between risk types

Case study

Corporate Governance

  • What is corporate governance?
  • Who are the stakeholders and what are the conflicts between them?
  • What are the benefits of good corporate governance?
  • Development of corporate governance - Cadbury, Walker, Hicks reports
  • The external view of 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
  • Creating 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 (7)

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