20-22 Wenlock Road, London. N1 7GU
info@bstconsultingltd.com
01375271001
Mode of Learning Picture 2

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 2

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;

  • Review of the implementation of credit risk under Basel I 1988, Basel II 2004, Basel III 2010 and Basel III 2017 reform) and how the implementations has evolved.
  • Theoretical and practical in-depth analysis of Credit Risk under Basel accords.

Participants exposure to Google Cloud Platform (GCP) enabled risk calculations.

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;

  • Review of the implementation of credit risk under Basel I 1988, Basel II 2004, Basel III 2010 and Basel III 2017 reform) and how the implementations has evolved.
  • Theoretical and practical in-depth analysis of Credit Risk under Basel accords.

Participants exposure to Google Cloud Platform (GCP) enabled risk calculations.

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.

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.

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

Module Risk Covered Topic Class Programme Sub Topics Description/Objective
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 I Accord Overview of Basel I framework Aim is to take a look at the Basel regulations and introduction of minimum capital requirement under Basel I framework
Topic Two 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 Three 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 Four 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.

Module One/Module Two: Basel II Accord and Basel III Credit Risk Topic Five 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
Credit Risk Topic Six 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.
  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
Module III: Basel III Reforms (Also known as Basel IV)   Topic Seven 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 Eight 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 Nine 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
  Capital Flooring Topic Ten Capital Flooring under Basel III Reform 1. Background
2. Summary of Main Changes
3. Implementation: Floor transitioning
 
  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

Module Risk Covered Topic Class Programme Sub Topics Description/Objective
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 I Accord Overview of Basel I framework Aim is to take a look at the Basel regulations and introduction of minimum capital requirement under Basel I framework
Topic Two 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 Three 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 Four 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.

Module One/Module Two: Basel II Accord and Basel III Credit Risk Topic Five 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
Credit Risk Topic Six 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.
  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
Module III: Basel III Reforms (Also known as Basel IV)   Topic Seven 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 Eight 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 Nine 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
  Capital Flooring Topic Ten Capital Flooring under Basel III Reform 1. Background
2. Summary of Main Changes
3. Implementation: Floor transitioning
 
  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