Integrated Risk & Corporate Governance Training Course

An Introduction to Risk for Government

• Understanding risk and its importance for banks in managing their operations.
• Evaluating whether risk is solely a negative experience or if it can have positive aspects.
• Exploring the global dimensions of banking and associated risks.
• An overview of the major types of risks encountered by banks.
• The potential consequences of inadequate risk management in the banking sector.
• Defining and understanding risk appetite for government institutions.
• Strategies and frameworks for effective risk management for government entities.

Case Study

International Risk Regulations for Government

• An explanation of risk-based regulations and their significance for financial stability.
• The relationship between risk management and capital requirements for banks.
• A detailed look at the concept of capital adequacy in banking.
• Key international regulations impacting risk management:
  • The Basel Accord
  • Sarbanes-Oxley Act

Case Study

The Basel Accords for Government

• The evolution of international banking risk regulations.
• The primary objectives of managing banking risks in a global context.
• The challenges of implementing uniform global regulatory standards.
• An overview of the Basel I Accord and the Market Risk Amendment.
• Key elements of the Basel II Accord.
• Capital requirements under Basel II.
• Enhancements in Basel 2.5 and Basel III:
  • The leverage ratio
  • Countercyclical capital buffer
  • Systemic interconnectedness

Case Study: Capital Requirements Under Basel III

Market Risk for Government

• Definition and scope of market risk.
• The role of market activities in trading operations.
• Primary market instruments:
  • Cash instruments
  • Derivative instruments
• Strategies for managing market risk effectively.
• Techniques and tools for measuring and managing market risk.
• Regulatory frameworks for market risk:
  • Basel II
  • Basel III

Case Study: The Consequences of Mismanaging Market Risk – JP Morgan

Credit Risk for Government

• An introduction to credit risk and its implications.
• A review of credit products in the international market.
• Strategies for mitigating and managing credit risk.
• The credit process from application to approval.
• Steps involved in the credit analysis process.
• Techniques for portfolio management in credit risk.
• Methods for measuring credit risk.
• Regulatory requirements for credit risk:
  • Basel II
  • Basel III

Case Study

Operational Risk for Government

• The significance of operational risk and its impact on financial institutions.
• Differentiating between expected and unexpected losses in operational risk.
• Types of operational risk events and their characteristics.
• The concept of the three lines of defense in managing operational risk.
• Frameworks for operational risk management.
• Steps to initiate an effective operational risk management program.
• Reporting structures for operational risk management.
• Components included under operational risk management.
• Techniques for measuring and assessing operational risk.
• Regulatory requirements for operational risk:
  • Basel II
  • Basel III

Case Study: UBS

Liquidity Risk for Government

• An overview of liquidity risk and its importance.
• Different types of liquidity and their implications.
• Potential consequences of inadequate liquidity management.
• Sources of liquidity in the financial system.
• Methods for measuring liquidity risk.
• The role of stress testing in liquidity risk assessment.
• Strategies for managing liquidity effectively.
• Regulatory frameworks for liquidity risk:
  • Basel II
  • Basel III

Case Study

Asset and Liability Management and Other Risks for Government

• An introduction to Asset and Liability Management (ALM).
• The role of ALCOs and Treasuries in financial institutions.
• Differentiating between the banking book and the trading book.
• Interest rate risk in the banking book and its management.
• Techniques for measuring and managing Interest Rate Risk in the Banking Book (IRRBB):
  • Contractual versus behavioral approaches
  • Stress testing methodologies
• An overview of other types of risks in banking.

Case Study

Supervision and Disclosure for Government

• The role of supervision and disclosure in ensuring financial stability.
• Cooperation between home and host supervisors in international banking.
• An explanation of the Internal Capital Adequacy Assessment Process (ICAAP).
• Supervision and disclosure requirements under Basel regulations.
• Key changes introduced by Basel III.

Case Study

Defining Enterprise Risk Management for Government

• An overview of Enterprise Risk Management (ERM) and its importance.
• The benefits of implementing ERM in financial institutions.
• The process and framework for effective ERM.
• The role of the risk management function within organizations.
• Strategies for portfolio management in the context of ERM.
• Considerations for new product development under ERM.
• Guidance from the Basel Committee on ERM.
• Commonly adopted frameworks for implementing ERM.

Case Study

Integrated Risk Management for Government

• Strategies for integrating risks across various functions of a bank.
• The role and structure of risk committees in financial institutions.
• Developing comprehensive risk policies and procedures.
• Techniques for recognizing and assessing different types of risks.
• Methods for aggregating risks across various categories.
• An introduction to economic capital and its application.
• The interaction between different types of risks in a financial institution.

Case Study

Corporate Governance for Government

• Understanding the principles and practices of corporate governance.
• Identifying stakeholders and addressing conflicts of interest.
• The benefits of effective corporate governance in financial institutions.
• A historical overview of the development of corporate governance, including key reports such as Cadbury, Walker, and Hicks.
• The external perspective on corporate governance from rating agencies and regulators.

Case Study: Can a Bank Be “Too Big to Manage”?

Good Corporate Governance for Government

• Structures and frameworks for effective corporate governance.
• The role of non-executive directors in governance.
• Techniques and strategies for enhancing corporate governance practices.
• The importance of committees and management practices in governance.
• Effective communication within the organization to support governance.
• The role of senior management in driving good governance practices.
• The internal framework supporting corporate governance.
• Guidance from OECD and Basel on corporate governance.

Case Study

Risk Governance for Government

• The principles and practices of risk management governance.
• Creating a culture of risk awareness within financial institutions.
• Implementing a robust risk culture across the organization.
• The role and structure of risk management committees.
• Integrating governance, risk, and compliance in organizational practices.

Case Study

The Future for Government

• An overview of the new regulatory regime:
  • Implications for the banking industry.
  • Implications for regulators and supervisory bodies.
• Priorities in the global banking regulatory agenda.
• Potential future challenges and flashpoints in the financial sector.