Investment Operations

Risk Management: A Non-Quantitative Approach

Categories Introductory, Risk

Course Instructor

Course Level

Beginner

Certification

Certificate

Delivery

Via Zoom

Hours (EST)

8 hrs

Description

This virtual class is available for a group of students. Contact us today to arrange your Risk Management training at a convenient date/time for your team.

One of the biggest challenges faced by internal and external auditors, compliance officers, IT professionals and bank regulators is working with risk management when they are not quantitative.  By the very nature that risk management involves measuring risk, sophisticated models are used by banks and every other type of financial institutions.  The Risk Management – A Non-Quantitative Approach virtual course is based on two decades of research and the professional experience of the instructor working globally with professionals in multiple areas of risk management. The course is interactive, relevant case studies and articles will be discussed. At the end of this course, participants should be able to:

  • Define and identify components of risk
  • Enumerate steps in risk management
  • Identify country and macro risks
  • Define and discuss financial risks: Credit, market, operational, liquidity, strategic and reputational
  • Discuss best practices in auditing or examining risk models

Prerequisite: None

Agenda

Day 1

Risk Nomenclature

  1. Define risk
  2. Identify components of risk management: identify, measure, control, and monitor
  3. Evaluate the nature of the macro and financial risks to which financial institutions are exposed
  4. Differentiate between country and sovereign risks

Defining and Identifying Credit Risk

  1. Describe all the elements of credit risk
  2. Define credit events
  3. Differentiate between credit risk and credit event

Measuring Credit Risk

  1. Describe inputs necessary to measure credit risk
  2. EAD, PD, LGD
  3. Calculate Expected Loss and Unexpected loss
  4. Discuss mapping of internal ratings into external ratings
  5. Market risk in the trading book, banking book and pension liability

Defining and Identifying Market Risk

  1. Define market risk
  2. Describe all the components of market risk
  3. Discuss where market risk exposures lie at a financial institution

Day 2

Measuring Market Risk

  1. Describe inputs for a Value-at-Risk framework
  2. Enumerate inputs for Expected Short-fall

Defining and Identifying Operational Risk

  1. Define operational risk
  2. Give examples of how operational risk materializes
  3. Discuss how operational risk is measured

Defining and Identifying Liquidity Risk

  1. Define liquidity risk measurement:
    • ratios
    • buffers
    • contingency liquidity risk management
  2. Discuss how banks manage their liquidity risks

Auditing and Examining Risk Models

  1. Enumerate and discuss the OCC’s model examination guidance
  2. Discuss data and IT red flags at banks
  3. Discuss best practices to audit and examine credit, market, and operational risk models

Summary & Question

In-House Training

Custom Training can help you achieve your corporate training goals while staying on budget and focusing the content on the needs of your group. Email your questions regarding corporate training to training@investmentoperations.net.

2023 Training Calendar

Training Catalogue

Course Instructor

Course Level

Beginner

Certification

Certificate

Delivery

Via Zoom

Hours (EST)

8 hrs

Description

This virtual class is available for a group of students. Contact us today to arrange your Risk Management training at a convenient date/time for your team.

One of the biggest challenges faced by internal and external auditors, compliance officers, IT professionals and bank regulators is working with risk management when they are not quantitative.  By the very nature that risk management involves measuring risk, sophisticated models are used by banks and every other type of financial institutions.  The Risk Management – A Non-Quantitative Approach virtual course is based on two decades of research and the professional experience of the instructor working globally with professionals in multiple areas of risk management. The course is interactive, relevant case studies and articles will be discussed. At the end of this course, participants should be able to:

  • Define and identify components of risk
  • Enumerate steps in risk management
  • Identify country and macro risks
  • Define and discuss financial risks: Credit, market, operational, liquidity, strategic and reputational
  • Discuss best practices in auditing or examining risk models

Prerequisite: None

Agenda

Day 1

Risk Nomenclature

  1. Define risk
  2. Identify components of risk management: identify, measure, control, and monitor
  3. Evaluate the nature of the macro and financial risks to which financial institutions are exposed
  4. Differentiate between country and sovereign risks

Defining and Identifying Credit Risk

  1. Describe all the elements of credit risk
  2. Define credit events
  3. Differentiate between credit risk and credit event

Measuring Credit Risk

  1. Describe inputs necessary to measure credit risk
  2. EAD, PD, LGD
  3. Calculate Expected Loss and Unexpected loss
  4. Discuss mapping of internal ratings into external ratings
  5. Market risk in the trading book, banking book and pension liability

Defining and Identifying Market Risk

  1. Define market risk
  2. Describe all the components of market risk
  3. Discuss where market risk exposures lie at a financial institution

Day 2

Measuring Market Risk

  1. Describe inputs for a Value-at-Risk framework
  2. Enumerate inputs for Expected Short-fall

Defining and Identifying Operational Risk

  1. Define operational risk
  2. Give examples of how operational risk materializes
  3. Discuss how operational risk is measured

Defining and Identifying Liquidity Risk

  1. Define liquidity risk measurement:
    • ratios
    • buffers
    • contingency liquidity risk management
  2. Discuss how banks manage their liquidity risks

Auditing and Examining Risk Models

  1. Enumerate and discuss the OCC’s model examination guidance
  2. Discuss data and IT red flags at banks
  3. Discuss best practices to audit and examine credit, market, and operational risk models

Summary & Question

In-House Training

Custom Training can help you achieve your corporate training goals while staying on budget and focusing the content on the needs of your group. Email your questions regarding corporate training to training@investmentoperations.net.

2023 Training Calendar

Training Catalogue

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