Course description
Bank Risk Management
Financial institutions have been managing their risks from inception. But the nature of risk management is fundamentally changing within these institutions. No longer is it seen purely as a control mechanism - but as a critical input into the basic business question: am I earning enough revenue out of this transaction to compensate me for the additional risks I am taking? This concept permeates all the leading financial institutions.
Every transaction, product and service needs to be assessed in terms of the increase in risk to the institution, with the assurance that the pricing of that transaction will generate a suitable return. Budgets should be allocated, and performances measured, on the basis of revenue earned per unit of risk generated. Such a risk culture is reinforced by the Basel Accord.
This requires the banks to allocate regulatory capital against the major components of risk, using either regulatory or, more likely, internal models. In the recent Western banking crisis and subsequent economic downturn, many financial institutions lost large amounts of money and had to be assisted by governments. Was this a failure of risk management, and if so, why? This course will discuss what happened, and how some institutions actually came out of the credit crisis with enhanced reputations. This course is designed to provide Participants firstly with a high-level overview of modern risk management, including a breakdown of the new regulations, and how banks are managing compliance with these.
Upcoming start dates
Training content
Day 1
- Introduction
- Why existing methods fail
- Risk Management: Critical points of understanding
- Practical exercises
Day 2
- Fundamentals of good risk management
- Practical exercises:
Day 3
- Measuring and reporting risk
- Practical exercises:
Day 4
- Market Risk Modeling and Assessment
- Credit Risk Management and Measurement
- Operational Risk Measurement
- Practical exercises:
Day 5
- Regulation
- ICAAP and SReP
- Risk culture and its importance in the performance of your organisation
- Practical exercises:
Costs
Course fee: £5295 + VAT
Certification / Credits
- Why Risk Management has become so crucial to Financial Institutions
- What decisions you need to make when implementing an appropriate risk management framework
- How should Risk Management be organised
- Estimate the level of Economic Capital required to underpin any transaction
- Estimate how much Economic Capital does an institution require?
- Analyse the major forms of risk generated by financial institutions, particularly within a ValueatRisk framewor
- How to identify ALL risks you face
- What are the to the measurement of Credit Risk, and how this is impacted by IFRS
- How to implement an Operational Risk methodology successfull
- How to successfully implement stress testing and scenarios for your most material risks
- How to implement a risk-based approach to any business challenge/decision
- How to test if your methodologies for Operational Risk measurement work, and how to fix them when they don’t
- How to model risk: and how to mitigate the really big events that may bring you down
- How to build an appropriate ICAAP, and what to do in preparation for the SRe
- A wide range of real-life case studies discussing the lessons we should learn from these failed institutions ¬ could the same events happen at your firm?
- Computer simulations of the latest techniques to model market, credit and operational risk
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Euromoney Learning
At Euromoney Learning, we understand that learning doesn’t start and end when you leave the classroom. We know that the financial markets never stand still, and that technology has both simplified and added complexity at a break-neck pace. That’s why...