20-22 Wenlock Road, London. N1 7GU
info@bstconsultingltd.com
01375271001
Mode of Learning Picture

MODE OF LEARNING – VIRTUAL CLASS

The structure of our virtual learning program is designed to keep the same levels of engagement and networking as our in-person courses. Like our classroom-based public courses, the maximum number of participants will be capped – the live online sessions will be limited to 7 participants. This allows for an interactive, discursive style of training to help you develop confidence in your future decisions and analysis.

Our live online courses are led by our experienced instructors, who will provide you with easily digestible content, using knowledge learned from many years in the industry, during scheduled class times. Currently, we offer live online public courses only in two region, Africa and Europe. Delegates will receive copies of the course materials electronically.

MODE OF LEARNING – VIRTUAL CLASS

Mode of Learning Picture

The structure of our virtual learning program is designed to keep the same levels of engagement and networking as our in-person courses. Like our classroom-based public courses, the maximum number of participants will be capped – the live online sessions will be limited to 7 participants. This allows for an interactive, discursive style of training to help you develop confidence in your future decisions and analysis.

Our live online courses are led by our experienced instructors, who will provide you with easily digestible content, using knowledge learned from many years in the industry, during scheduled class times. Currently, we offer live online public courses only in two region, Africa and Europe. Delegates will receive copies of the course materials electronically.

Course Description Picture

COURSE DESCRIPTION

The training and capacity development programme focuses on the evolution of Credit Risk under Basel Committee for Banking Supervision (BCBS) guideline on implementation of Basel I, II, III and IV bank capital requirements/frameworks.

The hands-on training program is structured in an easily digestible format to enable individuals with no risk management/regulatory reporting experience acquire knowledge and skills required to perform effectively on credit risk related capital regulatory reporting roles.

The course is divided into 3 broad categories;

  • Analysis of the Basel Accords (Basel II 2004, Basel III 2010 and Basel III 2017 reform) and implementation guidelines.
  • Theoretical and practical in-depth analysis of Credit Risk, Operational Risk and Liquidity Risk under Basel accords.
  • Participants exposure to excel/web base risk engine simulator used in deriving risk measures.

COURSE DESCRIPTION

Course Description Picture

The training and capacity development programme focuses on the evolution of Credit Risk under Basel Committee for Banking Supervision (BCBS) guideline on implementation of Basel I, II, III and IV bank capital requirements/frameworks.

The hands-on training program is structured in an easily digestible format to enable individuals with no risk management/regulatory reporting experience acquire knowledge and skills required to perform effectively on credit risk related capital regulatory reporting roles.

The course is divided into 3 broad categories;

  • Analysis of the Basel Accords (Basel II 2004, Basel III 2010 and Basel III 2017 reform) and implementation guidelines.
  • Theoretical and practical in-depth analysis of Credit Risk, Operational Risk and Liquidity Risk under Basel accords.
  • Participants exposure to excel/web base risk engine simulator used in deriving risk measures.
Learning Outcome Picture

LEARNING OUTCOME

Introduce participants to the concepts of Basel I, II, III and IV accords/frameworks and elaborate on the changes introduced by each framework.

Expose participants to the key financial regulations around Basel Capital Adequacy requirements by examining the roles of BCBS, EBA, PRA, OSFI etc in the implementation Basel requirements.

Define key attributes/parameters used in deriving Risk Weighted Assets (RWA) for credit risk, operational risk and market risk.

High level analysis of the key changes introduced in Basel IV to Risk Weighted Asset calculation for Credit Risk, Operational Risk & Market Risk.

LEARNING OUTCOME

Learning Outcome Picture

Introduce participants to the concepts of Basel I, II, III and IV accords/frameworks and elaborate on the changes introduced by each framework.

Expose participants to the key financial regulations around Basel Capital Adequacy requirements by examining the roles of BCBS, EBA, PRA, OSFI etc in the implementation Basel requirements.

Define key attributes/parameters used in deriving Risk Weighted Assets (RWA) for credit risk, operational risk and market risk.

High level analysis of the key changes introduced in Basel IV to Risk Weighted Asset calculation for Credit Risk, Operational Risk & Market Risk.

TARGET AUDIENCE(S)

Risk Professionals, Financial Regulators, IT Consultants (Business Analysts / Developers /Test Analysts) and other individuals that wish to gain insight into Basel bank capital adequacy regulations.

 

ANTICIPATED DURATION

5 days instructor led zoom lecture

 

LEARNING OBJECTIVES

The objective of the training is to provide participants with detailed analysis and insight into the implementation credit risk under Basel II, III & IV Capital Accords by financial institutions.

This will be achieved through examination of various regulatory requirements from Basel Committee for Banking Supervision (BCBS), European Banking Authority (EBA), Office of the Supretendent of Financial Institution (OSFI) etc as specified within the scope of Basel regulatory framework for credit risk.

 

ESTIMATED LEVEL OF AUDIENCE KNOWLEDGE

Intermediate Level

TARGET AUDIENCE(S)

Risk Professionals, Financial Regulators, IT Consultants (Business Analysts / Developers /Test Analysts) and other individuals that wish to gain insight into Basel bank capital adequacy regulations.

 

ANTICIPATED DURATION

5 days instructor led zoom lecture

 

LEARNING OBJECTIVES

The objective of the training is to provide participants with detailed analysis and insight into the implementation credit risk under Basel II, III & IV Capital Accords by financial institutions.

This will be achieved through examination of various regulatory requirements from Basel Committee for Banking Supervision (BCBS), European Banking Authority (EBA), Office of the Supretendent of Financial Institution (OSFI) etc as specified within the scope of Basel regulatory framework for credit risk.

 

ESTIMATED LEVEL OF AUDIENCE KNOWLEDGE

Intermediate Level

COURSE SCHEDULE

Day Module Risk Covered Topic Virtual Class Sub Topics Description/Objective
Day One Module One: Basel II Accord Credit Risk Intro On-boarding/Course Introduction On-boarding/Course Introduction Introduction of participants and general overview of course.
Topic One Basel II: Framework Overview 1. Introduction to Basel II accord
2. Basel II Implementation Timeline
3. Financial Regulators and Their Roles
4. Basel II: The Three Pillars
5. Regulatroy Capital, RWA & Capital Ratio

The aim of the topic is to introduce participants to Basel II Accord, what led to it’s introduction and the importance of its implemention by financial institutions.

We also review the 3 Pillars of Basel II accord (Minimum Capital, Supervisory Review Process & market Discipline)

Topic Two Basel II: Standardised Approach 1. Basel II Standardised RWA Overview
2. Exposure Classifications under STD Approach
3. Risk Weight application for exposure classes.
The first part of the topic before break is to discuss what RWA is and how it’s derived under Standardised approach. Also aim to cover various exposure classes reported under STD approach and how Risk Weights are derived for each Obligor based on their credit ratings.
Break Break Break
Basel II: Standardised Approach (cont’d) 4. Risk Measures derivation under STD Approach
5. CRM application under STD Approach
6. Basel II STD Approach Exercise
After break, we will be looking at various risk measures that are derived under STD approach for regulatory reporting purpose and the application of Credit risk mitigant (CRM) to exposure values and/or Risk Weights where applicable.
  Break Break Break
Topic Three Basel II: Internal Ratings Based (IRB) Approach Introduction to Foundation and Advance Approach Participants introduction to concept of Internal RatingBased Approach under credit risk.
IRB Foundation Approach (IRBF) 1. IRBF Approach Overview
2. Review of Asset Classes reported under IRBF Approach
3. Risk components derivation under IRBF Approach (PD, LGD, Maturity, EL, EAD)
4. Risk Measures derivation under IRBF Approach
5. CRM application under IRBF Approach
6. Basel II IRB Foundation Approach Exercise

Aim is to expose participants to RWA calculation under Foundation IRB approach.

Examine the key difference between IRB and STD approach. That is, regulators allow financial institutions to use their own internal rating estimate to derive/calculate Risk Weights under IRB approach.

Provide breakdown of how risk components RW calculation are derived under IRBF approach.

Day Two Module One: Basel II Accord Continued Credit Risk Topic Four IRB Advance Approach (IRBA) 1. IRBA Approach Overview
2. Review of Asset Classes reported under IRBA Approach
3. Risk components derivation under IRBA Approach (PD, LGD, Maturity, EL, EAD)
4. Risk Measures derivation under IRBA Approach
5. CRM application under IRBA Approach
6. Basel II IRB Advance Approach Exercise

Aim is to expose participants to RWA calculation under Foundation IRB approach.

Examine the key difference between IRB and STD approach. That is, regulators allow financial institutions to use their own internal rating estimate to derive/calculate Risk Weights under IRB approach.

Provide breakdown of how risk components RW calculation are derived under IRBF approach.

    Break Break Break
Operational Risk Topic Five Operational Risk under Basel II 1. What is Operational Risk?
2. The Basic Indicator Approach (BIA)
3. The Standardized Approach (SA)
4. The Advanced Models Approach (AMA)
Introduction of participants to Operational Risk under Basel II regulatory framework and examination of approaches to calculation of RWA and regulatory capital under Basel II guidelines.
    Break Break Break
Market Risk Topic Six Market Risk under Basel II 1. What is Market Risk?
2. Trading Book under Basel I vs Basel II
3. Market Risk Capital Requirement
4. Standardised Measurement Method (SMM)
5. Internal Model Method (IMM)

The aim of the topic is to introduce participants to RWA calculation for Market Risk under Basel II Accord.

Participants will also be exposed to the methodologies approved by regulators for capital composition for Market Risk under Basel II framework.

Day Three Module Two: Basel III Accord Credit Risk Topic One Changes to Regulatory Capital Ratio under Basel III 1. Basel III Framework Overview
2. Tier I Capital Ratio
3. Capital Conservation Buffer
4. Countercyclical Capital Buffer
5. Capital for Global Systemically Important Banks
Introduce participants to Basel III accord, a look at changes made to composition of capital for Credit Risk under Basel III accord.
Liquidity Risk Topic Two Overview of Liquidity Risk under Basel III 1. Liquidity Risk & Liquidity Risk Management
2. Developments that Led to 2008 Financial Crisis
3. Leverage & Liquidity Risk
4. Regulatory Response To 2008 Financial Crisis
Introduction of participants to Liquidity risk and examination of events that led to 2008 financial crisis and review of regulators response to the financial crisis.
Topic Three Liquidity Coverage Ratio (LCR) 1. What is LCR?
2. Objectives of LCR
3. Calculation of LCR
4. Implementation Timeline
Overview of Liquidity Coverage Ratio, it’s objectives and how LCRs are derived.
  Break Break Break
Topic Four Net Stable Funding Ratio (NSFR) 1. What is NSFR?
2. Objectives of NSFR
3. Calculation of NSFR
Overview of Net Stable Funding Ratio, it’s objectives and how NSFRs are derived.
Topic Five Leverage Ratio 1. Need for Leverage Ratio
2. Advantages & Disadvantages of Leverage Ratio
3. Calculation of Leverage Ratio
Examination of Leverage Ratio, its advantages and disadvantages under Basel III framework.
      Break Break Break
  ASSESSMENT ASSESSMENT ASSESSMENT Credit Risk and Liquidity Risk under Basel III framework 1. Class exercise on RWA & capital computation for credit risk under Basel II
2. LCR, NSFR, Leverage ratio derivation under Basel III
Day Four Module Three: Basel III Reforms (Also known as Basel IV) Credit Risk   Overview of Basel II/III accord Overview of Basel II/III accord Overview of Basel II/III accord
Topic One Basel III 2017 Reform Overview 1. Introduction to Basel III reforms
2. Need for Basel III Reforms
3. Basel III reforms Implementation Timeline
The aim of the topic is to introduce participants to Basel III 2017 reforms, what led to it’s introduction and the implementation timeline.
Topic Two Basel III Reform: Standardised Approach 1. What is Credit Risk?
2. Main changes under Standardized Approach
3. Risk Weight application for expsoure classes.
The first part of the topic before break is to discuss main changes to RWA calculation under Standardised Approach. Also aim to cover changes to old and newly introduced exposure classes under Basel III reforms.
Break Break Break
Basel III Reform: Standardised Approach (cont’d) 4. Risk Measures derivation under STD Approach
5. CRM application under STD Approach
6. Basel III Reform STD Approach Exercise
After break, we examine various risk measures that are derived under STD approach for regulatory reporting purpose and application of Credit risk mitigant (CRM) to exposure values and/or Risk Weights under Basel III reform
Break Break Break
Topic Three Basel III Reforms: Internal Ratings Based Approach 1. Background
2. Summary of The Main Changes To IRB Approach
PD Parameter Floors
LGD Parameter Floors
Other Changes To IRB Approach
Focus is on changes to IRB approach. We shall take a look at the new flooring methods for PD/LGD parameters under Basel III reform
Day Five Module Three: Basel III Reforms (Also known as Basel IV) Operational Risk Topic Four Operational Risk under Basel III Reform 1. Operational Risk Background
2. Summary of Main Changes
3. Operational Risk: Standardised Approach
4. Review of BI,BIC,ILM & Regulatory Capital
Introduction of participants to Operational Risk under Basel II regulatory framework and examination of approaches to calculation of RWA and regulaotry capital under Basle II guideline.
Credit Valuation Adjustment (CVA) Topic Five CVA under Basel III Reform 1. Background
2. Implementation Timeline
3. Summary of main changes
Standardised Approach (SA-CVA):
Removal of Internal Model Approach (IMA-CVA):
Basic Approach (BA-CVA):
Alternative Approach:
Capital Flooring Topic Six Capital Flooring under Basel III Reform 1. Background
2. Summary of Main Changes
3. Implementation: Floor transitioning
 
  Break Break Break
Leverage Ratio Topic Seven Leverage Ratio under Basel III Reform 1. Background
2. Implementation Timeline
3. Summary of Main Changes
ASSESSMENT   ASSESSMENT ASSESSMENT ASSESSMENT
  Assessment Review   Assessment Review/Closing Remarks Assessment Review/Closing Remarks Assessment Review/Closing Remarks

REVIEWS

I had a positive overall impression of the course. I want to express my gratitude to the entire team and Michael in particular, for making this course engaging and digestible. It is not easy to combine full-time work and education, but this course was designed in a way that is easily adjustable to any schedule, for participants from all over the world.

Stephen Oke
Programme Manager, HSBC UK

The most important takeaway that I got from the course was to always consider the data and analyse it before making any decision or taking any action. The online learning experience was excellent as the interactive structure of the whole portal was very easy to understand and navigate. The emphasis on discussions and interactions with the classmates was a very good method of sharing ideas and problem solving.

Sam Akinlawon
Business Analyst, Investec

 

This course is a good mix between the theories of statistics and practical applications to use in your daily business. It gives you the flexibility to combine it with your daily work because of the online learning method. The process was really smooth.

James Brown
RBS UK

 

Data analysis is a daunting topic for non-statistically minded people. However, this course has made data analysis accessible to everyone!

Renuka Sachin
Rabo Bank, Amsterdam

COURSE SCHEDULE

DayModuleRisk CoveredTopicVirtual ClassSub TopicsDescription/Objective
Day OneModule One: Basel II AccordCredit RiskIntroOn-boarding/Course IntroductionOn-boarding/Course IntroductionIntroduction of participants and general overview of course.
Topic OneBasel II: Framework Overview1. Introduction to Basel II accordThe aim of the topic is to introduce participants to Basel II Accord, what led to it's introduction and the importance of its implemention by financial institutions.
2. Basel II Implementation Timeline
3. Financial Regulators and Their RolesWe also review the 3 Pillars of Basel II accord (Minimum Capital, Supervisory Review Process & market Discipline)
4. Basel II: The Three Pillars
5. Regulatroy Capital, RWA & Capital Ratio
Topic TwoBasel II: Standardised Approach1. Basel II Standardised RWA OverviewThe first part of the topic before break is to discuss what RWA is and how it's derived under Standardised approach. Also aim to cover various exposure classes reported under STD approach and how Risk Weights are derived for each Obligor based on their credit ratings.
2. Exposure Classifications under STD Approach
3. Risk Weight application for exposure classes.
BreakBreakBreak
Basel II: Standardised Approach (cont'd)4. Risk Measures derivation under STD ApproachAfter break, we will be looking at various risk measures that are derived under STD approach for regulatory reporting purpose and the application of Credit risk mitigant (CRM) to exposure values and/or Risk Weights where applicable.
5. CRM application under STD Approach
6. Basel II STD Approach Exercise
BreakBreakBreak
Topic ThreeBasel II: Internal Ratings Based (IRB) ApproachIntroduction to Foundation and Advance ApproachParticipants introduction to concept of Internal RatingBased Approach under credit risk.
IRB Foundation Approach (IRBF)1. IRBF Approach OverviewAim is to expose participants to RWA calculation under Foundation IRB approach.
2. Review of Asset Classes reported under IRBF Approach
3. Risk components derivation under IRBF Approach (PD, LGD, Maturity, EL, EAD)Examine the key difference between IRB and STD approach. That is, regulators allow financial institutions to use their own internal rating estimate to derive/calculate Risk Weights under IRB approach.
4. Risk Measures derivation under IRBF Approach
5. CRM application under IRBF ApproachProvide breakdown of how risk components RW calculation are derived under IRBF approach.
6. Basel II IRB Foundation Approach Exercise
Day TwoModule One: Basel II Accord ContinuedCredit RiskTopic FourIRB Advance Approach (IRBA)1. IRBA Approach OverviewAim is to expose participants to RWA calculation under Foundation IRB approach.
2. Review of Asset Classes reported under IRBA Approach
3. Risk components derivation under IRBA Approach (PD, LGD, Maturity, EL, EAD)Examine the key difference between IRB and STD approach. That is, regulators allow financial institutions to use their own internal rating estimate to derive/calculate Risk Weights under IRB approach.
4. Risk Measures derivation under IRBA Approach
5. CRM application under IRBA ApproachProvide breakdown of how risk components RW calculation are derived under IRBF approach.
6. Basel II IRB Advance Approach Exercise
BreakBreakBreak
Operational RiskTopic FiveOperational Risk under Basel II1. What is Operational Risk?Introduction of participants to Operational Risk under Basel II regulatory framework and examination of approaches to calculation of RWA and regulatory capital under Basel II guidelines.
2. The Basic Indicator Approach (BIA)
3. The Standardized Approach (SA)
4. The Advanced Models Approach (AMA)
BreakBreakBreak
Market RiskTopic SixMarket Risk under Basel II1. What is Market Risk?The aim of the topic is to introduce participants to RWA calculation for Market Risk under Basel II Accord.
2. Trading Book under Basel I vs Basel II
3. Market Risk Capital RequirementParticipants will also be exposed to the methodologies approved by regulators for capital composition for Market Risk under Basel II framework.
4. Standardised Measurement Method (SMM)
5. Internal Model Method (IMM)
Day ThreeModule Two: Basel III AccordCredit Risk Topic OneChanges to Regulatory Capital Ratio under Basel III1. Basel III Framework OverviewIntroduce participants to Basel III accord, a look at changes made to composition of capital for Credit Risk under Basel III accord.
2. Tier I Capital Ratio
3. Capital Conservation Buffer
4. Countercyclical Capital Buffer
5. Capital for Global Systemically Important Banks
Liquidity RiskTopic TwoOverview of Liquidity Risk under Basel III1. Liquidity Risk & Liquidity Risk ManagementIntroduction of participants to Liquidity risk and examination of events that led to 2008 financial crisis and review of regulators response to the financial crisis.
2. Developments that Led to 2008 Financial Crisis
3. Leverage & Liquidity Risk
4. Regulatory Response To 2008 Financial Crisis
Topic ThreeLiquidity Coverage Ratio (LCR)1. What is LCR?Overview of Liquidity Coverage Ratio, it's objectives and how LCRs are derived.
2. Objectives of LCR
3. Calculation of LCR
4. Implementation Timeline
BreakBreakBreak
Topic FourNet Stable Funding Ratio (NSFR)1. What is NSFR?Overview of Net Stable Funding Ratio, it's objectives and how NSFRs are derived.
2. Objectives of NSFR
3. Calculation of NSFR
Topic FiveLeverage Ratio1. Need for Leverage RatioExamination of Leverage Ratio, its advantages and disadvantages under Basel III framework.
2. Advantages & Disadvantages of Leverage Ratio
3. Calculation of Leverage Ratio
BreakBreakBreak
ASSESSMENTASSESSMENTASSESSMENTCredit Risk and Liquidity Risk under Basel III framework1. Class exercise on RWA & capital computation for credit risk under Basel II
2. LCR, NSFR, Leverage ratio derivation under Basel III
Day FourModule Three: Basel III Reforms (Also known as Basel IV)Credit RiskOverview of Basel II/III accordOverview of Basel II/III accordOverview of Basel II/III accord
Topic OneBasel III 2017 Reform Overview1. Introduction to Basel III reformsThe aim of the topic is to introduce participants to Basel III 2017 reforms, what led to it's introduction and the implementation timeline.
2. Need for Basel III Reforms
3. Basel III reforms Implementation Timeline
Topic TwoBasel III Reform: Standardised Approach1. What is Credit Risk?The first part of the topic before break is to discuss main changes to RWA calculation under Standardised Approach. Also aim to cover changes to old and newly introduced exposure classes under Basel III reforms.
2. Main changes under Standardized Approach
3. Risk Weight application for expsoure classes.
BreakBreakBreak
Basel III Reform: Standardised Approach (cont'd)4. Risk Measures derivation under STD ApproachAfter break, we examine various risk measures that are derived under STD approach for regulatory reporting purpose and application of Credit risk mitigant (CRM) to exposure values and/or Risk Weights under Basel III reform
5. CRM application under STD Approach
6. Basel III Reform STD Approach Exercise
BreakBreakBreak
Topic ThreeBasel III Reforms: Internal Ratings Based Approach1. BackgroundFocus is on changes to IRB approach. We shall take a look at the new flooring methods for PD/LGD parameters under Basel III reform
2. Summary of The Main Changes To IRB Approach
PD Parameter Floors
LGD Parameter Floors
Other Changes To IRB Approach
Day FiveModule Three: Basel III Reforms (Also known as Basel IV)Operational RiskTopic FourOperational Risk under Basel III Reform1. Operational Risk BackgroundIntroduction of participants to Operational Risk under Basel II regulatory framework and examination of approaches to calculation of RWA and regulaotry capital under Basle II guideline.
2. Summary of Main Changes
3. Operational Risk: Standardised Approach
4. Review of BI,BIC,ILM & Regulatory Capital
Credit Valuation Adjustment (CVA)Topic FiveCVA under Basel III Reform1. Background
2. Implementation Timeline
3. Summary of main changes
Standardised Approach (SA-CVA):
Removal of Internal Model Approach (IMA-CVA):
Basic Approach (BA-CVA):
Alternative Approach:
Capital FlooringTopic SixCapital Flooring under Basel III Reform1. Background
2. Summary of Main Changes
3. Implementation: Floor transitioning
BreakBreakBreak
Leverage RatioTopic SevenLeverage Ratio under Basel III Reform1. Background
2. Implementation Timeline
3. Summary of Main Changes
ASSESSMENTASSESSMENTASSESSMENTASSESSMENT
Assessment ReviewAssessment Review/Closing RemarksAssessment Review/Closing RemarksAssessment Review/Closing Remarks

REVIEWS

I had a positive overall impression of the course. I want to express my gratitude to the entire team and Michael in particular, for making this course engaging and digestible. It is not easy to combine full-time work and education, but this course was designed in a way that is easily adjustable to any schedule, for participants from all over the world.

Stephen Oke
Programme Manager, HSBC UK

The most important takeaway that I got from the course was to always consider the data and analyse it before making any decision or taking any action. The online learning experience was excellent as the interactive structure of the whole portal was very easy to understand and navigate. The emphasis on discussions and interactions with the classmates was a very good method of sharing ideas and problem solving.

Sam Akinlawon
Business Analyst, Investec

This course is a good mix between the theories of statistics and practical applications to use in your daily business. It gives you the flexibility to combine it with your daily work because of the online learning method. The process was really smooth.

James Brown
RBS UK

Data analysis is a daunting topic for non-statistically minded people. However, this course has made data analysis accessible to everyone!

Renuka Sachin
Rabo Bank, Amsterdam