BASEL III Training
Training
In Birmingham
Description
-
Type
Training
-
Location
Birmingham
-
Duration
3 Days
How to meet the expectations of the Basel Accord. The role of risk appetite in driving operational risk management. Establishing and using an internal loss database. Use of external loss data. Development and use of both stress testing and scenario analysis. Development and use of key risk indicators. Consideration and use of control and risk self assessment. How should outsourcing be integrated into this project?. Review of available market solutions. Suitable for: CFO's, Heads of risk, Risk managers, Heads of audit, Audit managers, Directors, Controllers, Managers, Heads of departments, Specialists, Consultants, & Accountants from: Internal control, Internal audit, Finance, Accounting, Risk management, Risk analysis, Legal, Business continuity/Disaster recovery, Business/Corporate/Strategy planning, Compliance, Corporate governance, Financial planning, From the following industries: Banking, Financial, Insurance
Facilities
Location
Start date
Start date
Reviews
Course programme
Basel III
It has become an international requirement of doing financial business that Banks must implement Basel III. This has involved the introduction of new systems, new infrastructure and new risk managers to help monitor and manage all aspects of banking Risk.In addition, since Internal Audit has become a key component of financial risk management over recent years, it is essential that internal auditors are clear about the critical role they need to play in all of the risk management activities and are able to communicate this effectively to the rest of the bank.This 3-day course works through the basic framework of the Basel III accords from the point of view of a bank Risk Manager and Internal Auditor facing the Basel challenges. Each of the key elements of market, credit and operational risk is examined and the various roles is considered.The course concludes with a review of the Basel approach to the corporate governance of banks in order to assist the participants clarify in their own minds their role in contributing most effectively to the success of their institutions
Day 1
The History of the Basel Accords
The Basel Committee on Banking Supervision
From the Young Plan (1930) to Basel II
Regulatory supervision of internationally active banks
The failure of the Bankhaus Herstatt and the crisis of confidenceOverview of the Basel Capital Accords (Basel III)
The three pillars
The capital calculation
Market, credit and operational riskBanking and Risk Management
Responsibilities of Board
Key Committees – Audit Committee, Risk Committee
Independent risk management function
Key qualitative standards for risk management
Risk Approaches:
Operational Risk, Interest Rate Risk, Credit Risk, Market Risk
Credit Risk
Understanding credit risk
Assessment of individual credits
Off balance sheet items
Loan portfolio analysis
The standardized capital calculation
The Internal Ratings Basis
Pre-conditions for use of IRB
Credit risk governance
Market Risk
Types of instruments
Types of market risk
Treasury/back book vs the trading book
Interest rate risk management
Value At Risk and capital calculations
Market risk governance – the Middle Office
Economic Capital and Regulatory Capital
Risk Adjusted Performance Measures
Economic capital and risk appetite – subjective aspects
RAROC, RARORAC
The problems of capital allocation
The bank’s risk policies
Operational Risk
The three approaches: BIA,TSA,AMA
Business line classification
Qualitative requirements for TS
Introduction to AMA
Day 2
The Advanced Measurement Approach
Fundamentals of quantitative risk measurement
The four elements:
Business environment
Internal and external data
Scenario analysis
The AMA soundness standard
Problems and issues with the AMA
Internal audit and the use of specialists
Pillar 2 Supervisory Review and Corporate Governance
The four Basel principles of supervisory review
Assessment of capital adequacy
Supervisory review
Additional capital requirements
Supervisory intervention
The bank’s response
Internal capital assessment processes
Internal audit review of capital assessment
Central Bank approach to internal audit involvement
Expert review of advanced approach models (AMA, IRB, Market Risk)Framework for internal control systems in banking organizations - Basel Committee on Banking Supervision
The 13 Principles for the Assessment of Internal Control Systems
The 13 Principles and COSO The control environment
Risk assessment
Control activities
Information and communication
Monitoring
Types of control breakdowns typically seen in problem bank cases
The objectives and role of the internal controls framework
The major elements of an internal control process
Evaluation of internal control systems by supervisory authorities
Role and responsibilities of external auditors
Supervisory lessons learned from internal control failures
Day 3
The Basel Principles of Internal Audit
The 20 Basel Principles
Internal audit in practice
Internal audit and corporate governance
Relations with the external auditor and the regulator
Relations with risk managers and the compliance officer
Competence to audit Basel III
Dilemmas and possible solutions
Putting Together an Internal Audit Programme
Internal Audit’s overall role
Risk based analysis of Basel III compliance
Internal audit policy
Benchmarking implementation
Minimum qualitative standards
Governance structures
Basel III The Intent
Fundamentally strengthening the regulatory framework for banks
Strengthening the financial system: comparing costs and benefits
Proposal to ensure the loss absorbency of regulatory capital at the point of non-viability
Basel III and Financial Stability
The build-up of the banking crisis
The effect of Excess Liquidity
Shortcomings in Basel II risk management, corporate governance, market transparency, and the quality of supervision
Promoting greater financial system resilience
Calibrating Regulatory Minimum Capital
Regulatory minimum requirements
Capital buffers
Leverage ratio
Risk-weighted assets
BASEL III Training