RISK MANAGEMENT IN BANKS

Course description

This course aims to provide participants with an insight into the principal risks, their causes and effects in a financial environment.  It will assist them to develop, refine and integrate the necessary risk management procedures to prevent unexpected losses.

Who should attend?

The course is designed for risk managers directly or indirectly involved in establishing the day-to-day risk management activity and line managers, internal auditors and senior management, who need to assess and constructively question risk reports they are provided with.

The course will also be of interest to Central Bank and banking agency staff responsible for monitoring the performance of banks under their control.

Course Objectives

By the end of the course participants will be able to:

	define and evaluate the major risks and key areas of concern that exist in financial institutions
	assess and quantify the levels of risk in their own organisations
	devise and implement detective and preventative controls appropriate to their own environment
	examine their own operations and identify the key risk areas
	define and implement a risk management policy and strategy
	review the usage of Value at Risk as a risk framework measurement
	review and update their knowledge of the latest corporate governance / regulatory requirements
	consider the risk impacts of e-commerce and Internet banking

Topics Covered

The course will cover the following main topics and will include visits to professional organisations where relevant.

The Parameters of Risk Management

	emerging standards, background and latest developments
	risk types – financial and non-financial
	centralised and decentralised organisational structures
	risk management structures

Risk Measurement

	the regulatory framework, Basle Committee and capital adequacy
	alternative approaches and best practices

Responsibilities for Risk Management

	roles and structure
	monitoring compliance by operating divisions
	managing operational risk

Risk Limits

	Credit at Risk
	Earnings at Risk
	Value at Risk

Non-financial Risks

legal, regulatory and reputational risks

Internal Control Systems

	Management Information systems
	segregation of duties
	internal audit and the Audit Committee
	self-assessment

E-commerce and Internet Banking

	risks inherent
	managing the risks

Approach

This practical course makes use of a variety of training methods, including formal lectures, syndicate work, group discussion, case studies and project work, with an emphasis on individual participation and sharing experiences.