Risk Management – Framework for Banks

This course explores the impact of regulation on risk management with a particular focus on the work of the Basel Committee on Banking Supervision. Since its foundation in 1974, the Basel Committee has laid the foundation for ensuring the capital adequacy required for managing risk in banks.

The main objective of the course is to provide participants with a good understanding of the regulatory environment for risk management in banking.

• The institutions and regulations that aim at managing risk internationally
• Risk and regulation - The Basel Committee
• Methods in the Basel Accord for managing credit risk, market risk, operational risk and liquidity risk
• Value at risk and its use in managing risk
• The use and importance of stress testing
• The liquidity ratios included in the Basel Accord

• Institutions and regulations
• • The Basel Committee on banking supervision
  • European Banking Authority
  • Regulatory capital
  • Main regulatory texts
• Systemic Risk
• Market Risk
• • Value at Risk
  • Standardised
  • Internal model
• Credit Risk
• • Standardised
  • Internal ratings-based approach - Foundation
  • Internal ratings-based approach - Advanced
• Operational Risk
• • Basic indicator approach
  • Standardised approach
  • Advanced measurement approach
• Liquidity Risk
• • Solvency Ratio
  • Net Stable Funding Ratio
  • Liquidity Funding Ratio
• Stress testing
• Future trends 

Financial service professionals who want to gain an overview of risk management in the banking industry.

For this training course, an optional exam is available. In case of interest, candidates can choose a date from the list of proposed examination sessions. Registration for the exam must be made at least five days before the chosen exam date. The exam is subject to a registration fee.

The examination consists of true/false and multiple-choice questions. To pass the exam, a candidate must achieve a score of at least 50% of the total points on the exam.

This module is part of the Risk Management Certification. To obtain their certificate, candidates must complete 12 days of training in Risk Management and pass the exam for each course. 

More details here: Professional Risk Management Certification