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Risk Management and Basel II & III: Best Practices Training Course

This training course cuts through the maze of provisions contained in the new Basel II Accord to give you the practical implications of the new framework on pricing, deal structuring, profitability and ultimately, competitiveness.

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Risk Management & Basel II training course overview

The course provides a comprehensive review and analysis of the Basel II Accord and recent Basel III amendments. Beyond the specific provisions of the Accord however the course is an introduction to the multitude of risks faced by banks and the risk management techniques used to address them.

The primary focus is on Credit Risk but the new Market Risk and Operational Risk Frameworks are also reviewed.

The approach is practical, focusing on the implications of the framework on pricing, deal structuring, profitability and ultimately, competitiveness.

View the detailed course content and the latest discount promotions:

Have a question? Email us at:

or call us at: (+852) 2273-4393

Why should you attend this course?

By attending this course, you will gain an understanding of:

The objectives of the Basel II Accord and how it seeks to achieve them
The concept of Economic capital, Expected and Unexpected Losses.
The concept of RAROC/RORAC and its impact on pricing, business decisions and (active) credit portfolio management
The Three Pillars approach and how the pillars interact.
The capital requirements for Credit, Market and Operational risk.
Credit risk mitigation and how it impacts capital requirements and returns.
The concept of ICAAP in Pillar II.
The practical implications of the new Accord in terms of pricing and profitability of business lines and individual transactions.
The 3 Operational risk measurement methods

Risk Management & Basel II Course Agenda

DAY ONE

Background to Basel II:

The Basel I Accord

Background and scope
Mechanics-definition of capital, provisions & risk weights
Risk weight, Credit Conversion Factors and Return On Equity.
Success and limitations.

Credit Risk management practices at best practice banks.

Internal Credit Ratings
Economic capital
Expected and Unexpected losses
Rorac /Raroc concepts
Pricing as a credit issue
Credit models: KMV Moody's, CreditRisk+ and CreditMetrics.
Credit portfolio management.

The Basel II Accord

Objectives and how the Accord seeks to achieve them
Credit and Operational Risk vs. other risks
The three pillars system

The three approaches to capital allocation
Bank supervision
Market discipline

Definition of Capital and Provisions

1. Credit Risk

The First Pillar- Minimum Capital Requirements

Analysis of the two Approaches: Standardized and Advanced
The Standardized Approach
- New Risk Weights
- External Ratings
- Credit Risk Mitigation Techniques
The Advanced Approach
- The Risk Weight Function, PD, LGD and EAD.
- Requirements for PD, LGD and EAD calculation
- Different methods of PD calculation- Actuarial/Pooled Data/Merton
Rules for Sovereigns, Banks and Corporates
Rules for Retail
Practical implications for business lines, capital allocation & pricing of transactions
Case studies- calculation of capital requirements, pricing and returns under the Standardized and the Advanced Approaches.

DAY TWO

Credit Risk Mitigation

The use of guarantees, credit derivatives and collateral under the two Approaches
What has changed? Impact on deal structuring
Case studies: Structuring deals to achieve capital relief and maximize returns

Special Credit Exposures

Specialised lending sub-classes
- Project finance
- Object finance
- Commodities finance
- Income producing real estate
- High volatility commercial real estate
Rules for Equity Exposures
Rules for purchased receivables
Rules for Securitizations

Credit Risk Capital requirements for OTC derivatives

Add-ons, VaR and IMM methods
Case studies: capital requirements for OTC derivatives, including credit derivatives.

2. Market Risk

Banking book and trading book.
Changes to the 1996 Amendment for Market Risk
The Standardised Measurement Method and VaR method
Proposed changes in the light of the Credit Crisis.

3. Operational Risk

Definitions
The three approaches
Basel II requirements for the Standardised Approach
Basel II requirements for the AMA (Advanced Measurement Approach)
Expected and Unexpected losses
Operational risk events
The role of Key risk scenarios
Mapping operational risk
Link between Operational risk and Economic capital
How can the level of capital be influenced?
Tests for satisfying the Regulator
Case studies

Who should attend?

Auditors
Credit analysts
Credit committee members
Risk management staff
Operations managers
Corporate bankers
Relationship managers
Structured finance transactors
Analysts of stock broking firms
Financial institution units' staff

Pre-requisites

Understanding of basic banking products and accounting concepts

View the detailed course content and the latest discount promotions:

Have a question? Email us at:

or call us at: (+852) 2273-4393

Why Ethan Hathaway Training Courses?

Practical. Learn from experienced and active industry practitioners and what's being practiced by your peers.
Applicable. Apply what you learn in your job and your career
Specially designed courses by industry active experts for industry practitioners
Quality Control. Each expert instructor is interviewed and vetted through our senior management and our 5-point instructor criteria.
Valuable. Earn more revenue or save your organisation from monetary loss. You and your organisation will quickly earn back your investment on the course fee and more
Enjoyable. Speakers who have a passion for their topic
Clear. Turning complex concepts into easy to understand concepts
Limited seats - each session is limited to between 18-25 seats

What Do You Receive from an Ethan Hathaway Training Course?

You gain knowledge and skills that make you valuable to your company and your career
Instruction by industry experts
Course notes and reference package
Daily lunch, snacks and refreshments
Certificate of completion
Meeting your industry peers
Ask questions relevant to your job

Download the course brochure to learn more

Dates & Locations & Fees

Sorry, there are presently no public dates for this course, however, this course is available on an in-house basis.

Date	Location	Venue	Course Fee	Early Bird Fee	Register

Early Bird Savings Early Birds May Save Up To 30%** Off the Regular Fee, download the brochure to learn more

Limited seats - Email us: for availability.

* Venue, dates, course fees, promotions, course content, course instructor are all subject to change

** Selected courses only

Can't Find a Session in a City Near You?

If there's no session scheduled in a city near you, you have the following options:

In-house training: If you have a group of 8 or more, consider having us run this course in-house for you
Co-sponsored training: Between 5-7 people, consider a co-sponsored course - you agree to send this set number of people to the course if we run it in a city near you and Ethan Hathaway sells the remaining seats to other companies
Distance learning: Less than 5 people, consider distance training format: live trainer presents over phone lines/web at pre-scheduled times (available only for select courses)
Just tell us where you want the course: Let us know which city you'd like us to run this course in - we'll plan it if there's enough demand

Email us at: for more information regarding the above options.

Enroll in the Course

You may book your place on the course by any of these methods:

Online booking - simply click on the "Register Me" button next to the course date you wish to register and it will take you through our quick online registration procedure.
Email us at: - please include your full contact details.
Fax us the booking form (included in the brochure) to: +852 3014-0721
Or call: +852 2273-4393 during normal office hours

Related Courses

Related Online Courses

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Our course quality guarantee
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