Background to Basel II
History and Timelines of Basel II. The main purpose of the regulation, relationship to other regulatory changes, implementation in different geographies.
Introduction to Basel II
What is Basel II? The three pillars, different ways to implement regulation, tactical implementation/ strategic change, passive or active approach to Basel II.
Exercise
Quiz on Basel II its purpose, history and timelines |
Different Types of Risk
Market, Credit, Sovereign, Operational, Liquidity, Herstatt, Settlement. What are they and how do they affect the banks operations?
Introduction to Risk Monitoring, Management and Mitigation
Monitoring, management, hedging, collateralisation, value at risk (VAR). Different ways to perform simulations and stress testing.
Operational Risk
What is it? How to measure it? Loss data measurement and management, Key Risk Indicators (KRIs).
Exercise
Relating different types of monitoring to the different KRIs and deciding the best way to mitigate the risks. |
Operational Risk Identification and Mitigation
People processes and technology. Internal and external. Effect of outsourcing/insourcing. Softer skills - building a risk culture.
Operational Risk Reduction - Processes
Process redesign, STP and automation, process measurement and controls, process monitoring, consolidation and rationalisation.
BCP and DR
Business continuity planning, disaster recovery, risks mitigated, drawing up plans, testing.
Exercise
Looking at a process and seeing how redesigning that process could reduce the risks. |
Operational Risk Evaluation
Process documentation as an evaluation tool, operations performance measurement, identifying risks within processes, calculating process risks
WorkShop
Identifying and evaluating the key risks within a process and what mitigation techniques could be used. |
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