Description
Introduction
Basel III is a 2009 international regulatory accord that introduced a set of reforms designed to mitigate risk within the international banking sector, by requiring banks to maintain proper leverage ratios and keep certain levels of reserve capital on hand.
Basel III was rolled out by the Basel Committee on Banking Supervision—then a consortium of central banks from 28 countries, shortly after the credit crisis of 2008. Although the voluntary implementation deadline for the new rules was originally 2015, the date has been repeatedly pushed back and currently stands at January 1, 2022.
The methodology of this 3-day seminar is based on theoretical lectures, numerous practical exercises, interactivity and exchange of views, case studies.
Objectives
The main objective of this course is to provide participants with a good understanding of the interaction between regulation and risk management in banking. Because of its importance as a foundation for regulation, the work of the Basel Committee on Banking Supervision forms a large part of the course.
By the end of the course, participants will understand the necessity for banks to meet the Basel requirements for capital, liquidity and leverage. The evolution of the regulatory framework for banks from Basel I to Basel IV and its impact on risk management is analysed throughout the course. The most important calculations required in the Basel documentation, including those for stress testing and back-testing, are explained in detail.
In addition to the work of the Basel Committee, the course also considers other aspects of the interaction between regulation and risk management in banking.
Programme
1. Risk and Risk Management
1.1 Types of Risk in Financial Services
1.2 Risk Management
1.2.1 Objectives
1.2.2 Risk Management Cycle
1.2.3 Methods of Risk Management
1.2.3.1 Quantitative Methods (e.g., VaR)
1.2.3.2 Qualitative Methods (e.g., Stress Testing)
2. Risk and Regulation
2.1 The Basel Committee on Banking Supervision
2.1.1 History and Development
2.1.2 The Basel Accord
2.2 International Regulatory Environment
2.2.1 European Regulations
2.2.2 Non-European Regulations
2.3 Compliance Risk
3. Risk Management and the Basel Accord
3.1 Credit Risk
3.1.1 Description in the Basel Accord
3.1.2 Measuring Credit Risk
3.1.2.1 Standardised Approach
3.1.2.2 Internal Ratings Based Approach
3.1.2.2.1 Foundation Method
3.1.2.2.2 Advanced Method
3.2 Market Risk
3.2.1 Description in the Basel Accord
3.2.2 Measuring Market Risk
3.2.2.1 Standardised Approach
3.2.2.2 Internal Model Approach
3.3 Operational Risk
3.3.1 Description in the Basel Accord
3.3.2 Measuring Operational Risk
3.3.2.1 Basic Indicator Approach
3.3.2.2 Standardised Approach
3.3.2.3 Advanced Measurement Approach
3.4 Liquidity Risk
3.4.1 Description in the Basel Accord
3.4.2 Measuring Liquidity Risk
3.4.2.1 Liquidity Ratios
3.4.2.2 Liquidity at Risk
4. Regulating Risk in Financial Services
4.1 International Regulations Based on the Basel Accord
4.2 International Regulations Based on Other Sources
4.3 International Organisations Supporting Risk Management
5. Future Trends in Risk and Regulation
Target Audience
Banking professionals from all types of banks, supervisors or other financial institutions with at least 5 years of experience working in a banking environment. Course participants should already have a good understanding of risk management fundamentals. The course will particularly interest risk managers, auditors, compliance officers and managers who need to understand and apply the Basel Accord.
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.
Exam
No exam is available for this course.
Contact
For further questions please contact our partner in your country