Available as an in-house course only

Course Overview

A two-day workshop to give a better understanding of enterprise risk management procedures within banks and how these risks are addressed by both Basel II and internal economic capital models. An overview of lessons learned and best practice in the identification, monitoring and management of risk.

Course Objectives

The goal of this workshop is to understand how risks are categorised, quantified, monitored and managed within banks.

Participants will be equipped to:
• Identify, categorise and quantify credit, market, liquidity, operational, legal, regulatory and reputation risks
• Understand the systems and procedures needed to track, monitor and manage these risks
• Relate the risks to the capital of a bank

Course Content

Day One

Risks in an organisation
Pillar One:
Credit Risks
Market risks
Operation Risk

Pillar One
Credit Risks
Banks role
Guarantees
Letters of Credit / Trade Finance
Settlement Risk
Pre-Settlement Risk
Credit Rating vs Credit Scoring
Credit Modelling
Credit Derivatives
Credit Default Swaps
Funded and unfunded CDOs- Collatarised Debt Obligation
Credit Linked Note

Market Risks
Equity
Commodity
Supply / Demand

Operational Risks
Developing objectives
Key Risk Indicators
Process mapping
Score card approaches
Exceptional and Unexceptional events
Network Modelling
More man-days in budget

Day Two

Pillar Two:
Interest Rate
    • Repricing
    • Yield curve
    • Basis
    • Embedded Options
    • Effect on Earnings
    • Embedded losses
    • Economic Value
Exchange Rate
    • Bilateral Netting
    • Multilateral netting
    • Volatility
    • Translation
    • Transaction
    • Real Operational
Derivatives
    • Breakdown into components
    • Structure
    • Liquidity
    • Valuation Risk
    • Risk Mitigant or Risk Enhancer

Pillar Three:
Accounting
    • Art or Science
    • Abuses - more rules more abuse leads to more rules
Legal
    • Counterparty
    • Product
    • Collateral
    • Netting
    • Offsetting
    • Documentation
    • Regulatory
    • Litigation
Reporting requirements
Regulatory’s concern vs knowledge
Protecting the public

Case Study: Real life case studies to be used to discuss the risk management process involved in mitigating the said risks and relate to the capital structure of the Bank.

PDF of course outline- Please note that tailoring is possible


IF YOU HAVE ANY QUESTIONS ABOUT THIS SEMINAR PLEASE WRITE TO US AT post@redcliffetraining.co.uk

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