Course Description

Banks around the globe have been swamped with increasing regulatory scrutiny and complexity. In particular, a shift from the traditional backward-looking “What Is” supervision with banks steering towards a more forward-looking “What If” approach can be noted. Satisfying regulatory requirements on historical performance is no longer sufficient, banks have to now spend increasing effort to demonstrate to regulators they can satisfy performance requirements in the future, while considering adverse macroeconomic outlooks. Examples are the recent Pillar 2 and stress testing regulatory initiatives of EBA, PRA, and BIS.

In parallel, the environment of sub-zero interest rates and the emergence of the digital and fintech era have put banks into a difficult situation. They now have to balance the need for more returns, lower costs with the drive to become more agile, and the flexibly to respond to these recent regulatory and market trends.  

Both these new regulatory initiatives and market trends are asking for much faster decision making, and more agile response from banks in the coming years. The discipline of stress testing, capital planning, and scenario analysis will get a more prominent role in the bank’s steering and supervision, and will become more embedded within their organization risk management and decision making process. New emerging topics such as application of AI models, model risk management, and management of environmental and climate change risks will require a new set of expertise and tools to be dealt with effectively. As a result, financial institutions around the world are establishing dedicated teams to address these challenges and are increasingly looking for an efficient approach and the skilled resources with finance and risk forecasting expertise.

 

Course Objectives

• Increase knowledge of the forward-looking activities such as stress testing, ALM, capital planning, ICAAP, and scenario analysis 
• Understand, analyze, and process the steps, inputs and outputs of these processes
• Leverage the latest regulatory and business developments
• Understand the relevant financial and risk fundamentals
• Maneuver the inter-dependencies and form a holistic view around the ERM processes, with an enterprise-wide mindset (e.g., full balance sheet, P&L, all risks)
• Increase awareness and efficiencies of your team's dependencies, identify and reduce duplicate tasks and increase cooperation and the speed of processes
• Learn from tips, case studies, and examples to understand the potential of these processes and achieve business benefits and go beyond the “compliance-only” mindset
• Raise awareness of the role played in the ERM process through emerging technologies such as AI models, managing model risk, and dealing with environmental and climate change risk 

Course Schedule