Developing risk reports to meet regulatory standards is a challenge for all financial services organisations, but particularly for smaller ones whose resources are often at stretch and have little time to wade through the hundreds of pages of the directive text, consultation papers, rules and guidance.
The focus of these courses is on the practical issues facing small to medium-sized banks and investment firms and provide an appreciation of approaches taken by similar organisations operating in their sector.
This course will assist you in formulating, updating and reviewing your organisation’s Recovery Plan. Topics covered include:
- Considering recovery options and actions, including disposal options
- Quantifying the impact of actions on profit, capital and liquidity based on results from stress testing and reverse stress testing feedback
- Assessing the feasibility of actions, the timing of receiving benefits and likely effectiveness
- Considering impacts on staff, any recovery or resolution issues and the communication plan
- Integration with the risk management framework, including early warning signals, activation indicators and escalation processes
- Resolution information for an accompanying Resolution Pack, such as economic functions, support functions and interdependencies
- Assessing the credibility of the plan, impact of loss of economic functions and feasibility of resolution over a weekend.
On completion of this course, it is expected that you will be confident in moving forward with your plans for further development of your ILAAP report.
Topics covered include:
- Articulating liquidity risk appetite using appropriate risk measurements
- Risk monitoring using early warning signals and traffic lights summaries
- Analysing and measuring liquidity and funding risks against regulator’s prescribed risk drivers
- Assessing liquidity and funding needs for current and projected liquidity positions based on business plans
- Constructing stress test models for sensitivity analyses, scenario analyses and reverse stress testing
- Reaching an assessment of overall liquidity requirements and sizing of the liquid assets buffer
- Understanding liquidity supervisory review from the regulator’s perspective.
This course is intended is to assist you in developing and reviewing your ICAAP to meet evolving regulatory expectations as well as those from the Board:
Topics covered include:
- Articulating risk appetite using appropriate risk measurements
- Analysing and measuring risks against the bank’s risk appetite
- Constructing appropriate sensitivity analysis models to quantify key risks such as concentration risk, interest rate risk, currency valuation risk
- Reverse stress testing to determine vulnerabilities in the business model
- Overall assessment of capital adequacy for current and projected financial positions
- Sizing of capital buffers from stress testing of the business and capital plan
- Integrating the ICAAP with the risk management framework and its adoption & use
- Understanding supervisory review and key feedback messages from regulators.