Certified Stress Testing Expert CSTE - Distance Learning and Online Certification Program

Certified Stress Testing Expert
Overview:
"Our client, a world leader in professional and advisory services, seeks a Risk Management Professional with knowledge in Stress Testing to join its prestigious Risk Management Advisory Team... "
More and more banks and financial organizations respond to the regulatory guidelines in the USA, the European Union, the Middle East, the Pacific Rim and around the world, and hire risk and compliance managers and professionals with an understanding in stress testing. They are not looking for mathematicians. They are looking for professionals that can join the risk management teams that perform the financial stress testing exercises.
There is strong demand for jobs in the it sector, and for a good reason: After the release of bank stress test results around the world, bank stocks are racing ahead, prompting investors to jump in.
Stress testing can not be ignored after the market crisis.
Objectives:
This course has been designed to provide with the knowledge and skills needed to understand and work in Financial / Regulatory Stress Testing projects.
The course provides with the skills needed to pass the Certified Stress Testing Expert (CSTE) exam.
Target Audience:
This course is not for mathematicians and modelling experts. It is intended for all managers and professionals from Banks, Financial Institutions, Multinational Corporations and Supervisory Agencies who need to understand and implement the financial / regulatory stress testing exercises and become Certified Stress Testing Experts (CSTEs).
This course is highly recommended for:
All Managers and Professionals involved in Basel ii projects (decision making and implementation)
Financial Industry Professionals (not mathematicians) that need to deal with regulatory stress testing
Risk Managers and Officers
Compliance Managers and Officers
Analysts
Auditors
Management Consultants
Course Synopsis:
Introduction to Stress Testing
Value at Risk (VaR): What is expected under normal market conditions
Stress Testing: What is expected under extreme market conditions
What is stress testing?
What is financial stress testing?
Scenario tests
Sensitivity tests
Historical scenarios
Hypothetical scenarios
Regulatory Stress Tests
Financial Sector Assessment Programs (FSAPs)
Stress testing at major financial institutions: Survey results, Bank of International Settlements
From the Value at Risk to Stress Testing
Standard Normal Distribution
"We are seeing things that were 25-standard deviation moves several days in a row"
Stress Testing in the Basel ii Framework
Lessons learned from the previous crisis
Lessons learned from the current crisis
Stress-testing and the Basel ii Framework after the G20 meeting in London
Stress-testing methodologies from the Bank of International Settlements
Principles for sound stress testing practices and supervision from the Bank of International Settlements
Financial Stress Testing and the Committee of European Banking Supervisors (CEBS)
Financial Stress Testing in the USA
Final Supervisory Guidance
Case Study
The Supervisory Capital Assessment Program (SCAP)
Stress Testing: Challenges, Difficulties and Opportunities
Model Uncertainty
Data Uncertainty
Procyclical or Countercyclical?
Stress Testing scenarios based on a higher correlation environment
Correlation
Correlation Coefficient
Basel ii, Asset Correlation
Problems with Correlation
Micro stress tests
Macro stress tests
Bank of England, Financial Stability Reports
Basel II Stress Tests - Weaknesses That Led to the Turmoil
1. Use of stress testing and integration in risk governance
2. Methodologies
3. Scenario selection
4. Testing of specific risks and products
Endogenous and Exogenous Risks
Heisenberg's uncertainty principle and stress testing
Back testing and Stress Testing
Placing Stress Testing under Pillar 2
Improving stress-testing practices
Concluding Remarks
Case Study: Stress and Scenario Testing by the UK FSA