The course covers the foundations of risk management (Credit, Market, and Liquidity and Operational risks) and the rapidly evolving measurement, management and regulatory capital issues related to these risks. In particular, the course provides a detailed overview of the changes both recently decided and under continuing debate in banking risks. The course also analyses the growing constraints imposed by Basel 3 on bank balance sheets and explains how banks are increasing adjusting their business models and balance sheets to optimize return on equity and RAROC.. In the immediate aftermath of the 2008 Financial Crisis, the Basel Committee initiated significant changes including: increased capital requirements, a macro-prudential framework for determining and managing banking sector including the ‘risk invariant’ leverage ceiling, Pillar 1 liquidity risk requirements in addition to strengthened Pillar 2 (‘ILAAP’) requirements, and Basel 2.5 market risk capital amendments pending a Fundamental Review of the Trading Book process. Following these initial steps, the Basel Committee has continued its work during the past three years in issuing significant additional revisions and new requirements in the entire Basel framework covering credit and market risks – both on- and off-balances sheet. This course will explain the new framework, its impacts on the banking sector – both generally as well as in SE Asia, and discuss proposed further changes proposed by the Basel Committee and other banking regulators – including central clearing of financial transactions and system risk prevention initiatives such as ‘living wills’ and ‘bail-in’ bonds. The programme will explain the shifts to a more enterprise risk measurement and capital framework and discuss the impacts on the banking sector
This course was designed for Risk Manager, Business Manager, Accountants, Bankers, Risk Officer, Risk Analyst, Finance Executives, Finance Analysts, Banking Professionals, Regulators and Service Providers interested in a detailed overview of bank risk measurement, management and capital requirement calculation. The course will be particularly useful to banking professionals in the risk management, strategic planning, finance, ALM (ALCO) and IT areas, and to individuals involved in the Basel ICAAP and balance sheet and liquidity management process.