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International Certificate in Banking Risk and Regulation
Introduction
Uncertain times. Time for certification.
Therole of risk management is becoming more important as both banks and supervisors around the world increasingly recognize that sound risk management practices are vital, not only for the success of individual banks, but also for the banking system as a whole. An important component of this journey towards becoming more risk aware, is education and training. The International Certificate in Banking Risk and Regulation is designed for individuals to develop their knowledge and understanding of the various risks, regulations and supervisory requirements a bank must face in today's environment. Those who work in banking, regulatory agencies, consulting firms, government bodies, central banks and academic institutions will all benefit from this certificate program.
The program was developed as a result of input from risk management practioners from around the world. In a qualitative approach, the International Certificate in Banking Risk and Regulation presents a studied review of the following:
Traded Market Risk Management and Regulation
Treasury Risk Management and Regulation
Credit Risk Management and Regulation
Operational Risk Management and Regulation
Supervision and Regulation
Successful candidates of the International Certificate will demonstrate a knowledge and understanding of risk management methodologies, governance structures for the management of risk in banks, and the regulatory requirements provided by the Basel Committee on Banking Supervision.
Certificate requirements
Candidates for the International Certificate should have both a reasonable understanding and some experience of banking. Therefore they are expected to know terms commonly used in the finance industry.
To obtain the International Certificate in Banking Risk and Regulation, you will be required to pass one exam that consists of 120 multiple choice questions and will last 175 minutes. A candidate will need to answer 80 questions correctly in order to pass.
The Certificate exam can be taken at any time and is given electronically through Pearson VUE test centers located across the world. Details of these test centers can be found on the Pearson VUE web site at www.vue.com/garp.
The material covered in the examination is the following:
Module specification
1.
Title
An Introduction to Risk and Regulation in Banks
2.
Program of study to which module contributes
International Certificate in Banking Risk and Regulation
3.
Intended subject-specific learning outcomes
On completion of this module, candidates will be able (at a foundation level) to:
Demonstrate an understanding of the risks in banking and the need for banking regulation, the relationship between risk and minimum capital requirements, and the risk-based regulatory framework.
Demonstrate an understanding of the methods for the measurement and management of traded market risk and the regulatory requirements for managing market risk and establishing minimum capital requirements
Demonstrate an understanding of the requirement for the measurement and management of treasury risk in banking in particular liquidity risk and interest rate risk in the banking book, and the ways in which the treasury function should ensure that minimum capital requirements are maintained.
Summary of module content
Part A:
Banking risk and regulation
Chapter 1:
The nature of risk and regulation in banking
Chapter 2:
The history of risk-based regulation of banks
Chapter 3:
The evolution of risk management and regulation in banking
Part B:
Traded market risk management and regulation
Chapter 4:
The nature of market risk
Chapter 5:
The measurement and regulation of market risk
Chapter 6:
The Standardised Approach to measuring market risk
Chapter 7:
The Internal Models Approach to measuring and managing market risk
Part C:
Treasury risk management and regulation
Chapter 8:
The nature of market risk
Chapter 9:
Interest rate repricing in the banking book
Chapter 10:
Methods for measuring and managing liquidity risk
Chapter 11:
Capital management and treasury risk
Module specification
1.
Title
Banking Risks – Measurement, Supervision and Disclosure
2.
Program of study to which module contributes
International Certificate in Banking Risk and Regulation
3.
Intended subject-specific learning outcomes
On completion of this module, candidates will be able (at a foundation level) to:
d.
Demonstrate an understanding of the methods for the measurement and management of credit risk and the regulation of minimum capital requirements.
e.
Demonstrate an understanding of the methods for the measurement and management of operational risk and the regulation of minimum capital requirements.
f.
Demonstrate an understanding of the requirement for the supervision of banks and the disclosure of market information.
Summary of module content
Part D:
Credit risk management and regulation
Chapter 1:
The development of risk-based supervision of banks
Chapter 2:
Basel II and the international regulation of banks
Chapter 3:
The nature of credit risk
Chapter 4:
The approaches for calculating credit risk capital
Chapter 5:
The Standardised Approach to measuring credit risk
Chapter 6:
The Internal Ratings-Based approaches to measuring credit risk
Chapter 7:
Collateral and securitization
Part E:
Operational risk management and regulation
Chapter 8:
The nature of operational risk
Chapter 9:
The approaches for calculating operational risk capital
Chapter 10:
The Basic Indicator Approach to measuring operational risk capital
Chapter 11:
The Standardised Approach to measuring operational risk capital
Chapter 12:
The Advanced Measurement Approach to measuring operational risk capital
Chapter 13:
Managing operational risk
Part F:
Supervision and regulation
Chapter 14:
The supervisory review process
Chapter 17:
The role of national supervisors
Chapter 16:
Supervision of operational risk and ‘other’ risks
Chapter 17:
Bank disclosure requirements
Certification Preparation Tools
As a registered candidate you have two options in your preparation for the International Certificate for Banking Risk and Regulation.
You are automatically granted access to GARP’s E-Learning Center, where you can view your study materials and take practice tests on-line only.
Additionally, you can purchase the same materials in a printed work book for USD $175.00, plus shipping. If you are a Member of GARP and register as such, you are eligible to receive a discount on the study materials. This is automatically given once you log-in.
GARP’s E-Learning Center
GARP automatically provides you with access to the e-learning program which enables you to study from your personal laptop or anywhere with internet access. The GARP E-Learning experience will provide you with all the same advantages as the printed study guides as well as sample chapter quizzes which will thoroughly prepare you for the upcoming exam.
Printed Workbook Study Guides
This comprehensive printed study guide covers the material in a clear, concise and in-depth manner. The material with its easy to follow lessons, practical examples, and case studies reinforce the material learned in each chapter. There are also multiple sample questions and quizzes for each chapter, which will help you in preparation for the exam.
