Description
Introduction
Risk management in banking is theoretically defined as “the logical development and execution of a plan to deal with potential losses”. Usually, the focus of the risk management practices in the banking industry is to manage an institution's exposure to losses or risk and to protect the value of its assets.
The methodology of this seminar is based on a combination of theory and practical exercises.
Objectives
The main objective of this course is to provide participants with a good understanding of risk management in banking. Specifically, the course helps participants understand:
- Risk management in banking
- Tools for measuring and managing risk
- Market risk and the different types of risk that belong to it
- Credit risk and how to manage it
- Operational risk across different departments of a bank
- Liquidity risk and how it impacts banks
Future trends in risk management for banks
Programme
A. INTRODUCTION
1. Risk and risk management
2. Types of financial risk
3. The Basel Committee on Banking Supervision
4. Measuring and managing risk
o The risk management cycle
o Value at Risk (VaR)
o Stress testing and back testing
o Hedging
B. MARKET RISK
1. Market risk in banking
2. Components of market risk:
o Interest rate risk
o Equity risk
o Currency risk
o Commodities risk
3. Managing market risk
C. CREDIT RISK
1. Components of credit risk:
o Lending
o Investing
o Counterparty/settlement risk
2. Retail vs. corporate clients
3. Default risk
4. Downgrade risk and the rating agencies
5. Hedging against credit risk
D. OPERATIONAL RISK
1. Causes of operational risk:
o Internal processes
o People
o Systems
o External events
2. Managing operational risk
3. Hedging against operational risk
E. LIQUIDITY RISK
1. Characteristics of liquidity risk
2. Types of liquidity risk
o Assets
o Funding
3. Managing liquidity risk
F. FUTURE TRENDS IN RISK MANAGEMENT
Target Audience
Professionals from banks, financial institutions or supervisory authorities with at least 3 years of experience working in a banking environment. The course will particularly interest auditors, compliance officers and managers from different banking areas.
Remarks
Please note that this course is usually organized to cover 3 days, but the duration could vary according to the training needs.
Modalities
Course Material
Please note that for environmental reasons no paper version of the training material will be provided for your training. The course material can be downloaded free of charge via your portal before the start of the course (download the Client Portal User’s Guide here ). You will be able to view it on the screen of your mobile device or print it if necessary. If your registration has been made by a training manager of your company please contact him/her so that he/she can give you access to it or send it to you.
Contact
For further questions please contact our partner in your country