Advanced Risk Management for Private Bankers

Course Overview

This course aims to cover the portfolio levels issues in the various divisions of the Banks. Primary focus will be on the corporate lending arena and in the private bank leading on to the credit risk management relating to industry, and country risks.

Participants will cover credit risk management techniques as department heads of syndication teams, sector-heads etc. Emphasis will be on practical issues relating to arriving at credit policies in a bank. The concepts and methodologies developed in advanced IRB ( Internal risk Rating Based-approach) capital requirements of Basel 2 will be covered.

The course seeks to cover the credit risk management in various stages of growth of the Bank, the different approaches taken in the corporate, consumer and private bank, the techniques involved in managing a merger between banks and the steps taken in managing the recovery situation when there are significant bad debts.

Course Content

Day One

Introduction

• Convergence of Capital Measurement and Capital Standards
• Banking Securities and financial Subsidiaries
• Insurance Entities
• Commercial Entities – big industrial Groups

Minimum Capital Requirements

• Regulatory Capital
• Risk-Weighted Assets
• Constituents of Capital- Tier 1, Tier 2 and Tier 3
• Detailed Analysis for the various products

Credit Risk

• Standardised Approach
• Treatment of off balance Sheet items
• Advanced Credit Mitigation Techniques
• Dealing with the principles behind the mathematics
• Guarantees and Derivatives

Portfolio credit risk

• Syndicated deals
• Managing the credit risk
• Stress Testing
• Valuing the portfolio
• Securitised deal

Day Two

Corporate, Sovereign and Bank Exposures

• Derivation of Probability of Default (PD), Loss Given Default (LGD), Exposure at Default (EAD)
• Correlation
• Maturity Adjustments
• Risk Weights for Specialised Lending
• High Volatility Commercial Real Estate
• Capital Requirement for Hedged and Unhedged Exposure
• Ratings Approach
• IRB Model
• External Rating Model
• Product and Facility rating
• Efficiency vs Risk
• Group Study: Example of defining the rating model for housing loans, credit cards, SME loans, property development loans. Use of Excel and Power Point necessary for presentation

Preparation of Credit policy

• Participants are expected to bring their banks credit policies for discussion
• Organisation Structure
• Delegation of Authority
• Checks and Balances
• Flow of Credit request
• Real strength of collective decision making
• Main constituents in arriving at a Credit Policy of a Bank
• Dynamic monitoring

Restructuring Assets

• Provisioning
• Estimate of Hair-cuts
• Determinants
• Value of distressed asset
• Managing debt equity swaps, credit derivatives etc
• Investigative auditing

Delivering this course in-house for you to a number of participants could be very cost effective. Please call us on 020 7387 4484 to discuss this further.

If you have any questions about this seminar please write to us at post@redcliffetraining.co.uk.