BASEL III Training

Training

In Birmingham

Price on request

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

Birmingham (West Midlands)

Start date

On request

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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

Price on request