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Risk and Regulation in Banks
3 Day Workshop
Introduction
Across the globe regulators are increasingly linking the amount of risk taken by a bank to the amount of capital it is required to hold. In fact many banks and financial services are increasingly being managed on risk-based management practices. It is important that all financial services professionals have an understanding of risk management and risk-based regulation. In fact recent events in the global financial market have highlighted just how important it is for banks to a have a firm understanding and management of its risks across the entire enterprise. This seminar is designed as an introduction to the various types of banking risk and risk-based regulation.
the explanation of risk-based regulation
description of the three tiers of the Accord - capital allocation, supervision and disclosure
gain an understanding of the three Pillar 1 risks and three other key risks identified by Pillar 2
how capital allocations are calculated for Pillar 1 risks
best practice methodologies for the management of the five main risks.
Who should attend this seminar?
This course is intended those either new to risk management, new to risk-based regulation or who wish to gain an understanding of the Basel regulations. It will be of use to:
risk managers and analysts
senior management
investment banking professionals
treasury professionals
balance sheet and capital managers
asset and liability managers and analysts
it and operations professionals
internal and external auditors
compliance personnel
regulators and supervisory professionals
business managers and team leaders
anyone new to risk management within financial services
suppliers and consultants to banks and the risk management industry
Pre-requisites
No prior experience of risk-based management or of the Basel II Accord is required as this course first covers the basics before moving on to more advanced topics. However it is assumed that all delegates are familiar with common financial terms and have a basic understanding of banking and the functions of a financial institution.
Objectives
The objective of this course is to give an introduction to banking risks and regulation, specifically:
explanation of the eight major risks encountered in banking
the main features of the Basel Accord and the three Pillars
the management and measurement of the three risk covered under Pillar 1
the risks managed and measured under the Accord’s Pillar 2 requirements
supervision and disclosure requirements (Pillar 2 and Pillar 3)
Content
DAY 1 – Fundamentals of risk-based regulation
An introduction to risk
What is risk and why should banks manage it?
An introduction to the major types of risk
Market risk
Credit risk
Operational risk
Other types of risk
The potential consequences of failing to manage risks in banks
The main risk-based regulations
Case Study
The Basel I and Basel II Accords
The development of international banking risk regulation
The Basel I Accord and the Market Risk Amendment
The Basel II Accord
Capital under Basel II
Market risk
What is market risk?
Market activities and why trade
The main market instruments
Cash instruments
Derivative instruments
Managing market risk
DAY 2 – Market risk and credit risk
Calculating Market Risk under Basel II
Value at Risk
Market risk models and approaches
The Standardised Approach
The Internal Model Approach
Obtaining approval for an internal model
Credit risk
What is credit risk
The credit time line& risk parameters
Mitigating and managing credit risk
Case study
Calculating credit risk capital under Basel II
The Standardised Approach
The Internal Ratings-Based approaches
Obtaining approval for using a measurement approach
Collateral, securitization, and credit derivatives
Exercise
DAY 3 – Operational risk, supervision and disclosure
Operational risk
What is operational risk and why is it important?
Risk of loss, expected and unexpected losses
Operational risk event types
Operational risk management
Case study
Calculating operational risk capital under Basel II
What is operational risk measurement
The Basic Indicator Approach
The Standardised Approach
The Advanced Measurement Approach
Obtaining approval for using a measurement approach
Exercise
Pillar 2 risks
Interest rate risk in the banking book
Liquidity risk
‘Other’ risks
Supervision & disclosure – Pillar 2 and 3
What is supervision and disclosure
Home/host supervisory co-operation
The Basel II principles of supervision
The Basel II principles of disclosure
3 Day Seminar: September 7-9, 2009
Location: London
GARP Individual, Student & Fellow Member Pricing
Book before July 31
Book after July 31
£1,575
£1,662.50
Affiliate & Non-Member Pricing
Book before July 31
Book after July 31
£1,662.50
£1,750
3 Day Seminar: May 19-21, 2009
Location: Dubai
GARP Individual, Student & Fellow Member Pricing
Book before April 9
Book after April 9
£1,575
£1,662.50
Affiliate & Non-Member Pricing
Book before April 9
Book after April 9
£1,662.50
£1,750
3 Day Seminar: June 8-10, 2009
Location: New York
GARP Individual, Student & Fellow Member Pricing
Book before May 8
Book after May 8
$2,430
$2,565
Affiliate & Non-Member Pricing
Book before May 8
Book after May 8
$2,565
$2,700
You may also be interested in GARP's International Certificate in Banking Risk and Regulation. Click here to learn more.
By becoming a GARP member you become part of a global community of financial risk professionals. 
