Basel III – Certified Basel Professional
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COURSE DATES AND LOCATIONS
DATE
Duration
LOCATION
FEES
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INTRODUCTION
Basel III is a comprehensive set of reform measures developed by the Basel Committee on Banking Supervision, to strengthen the regulation, supervision, and risk management of the banking sector.
These measures aim to:
Improve the banking sector’s ability to absorb shocks arising from financial and economic stress, whatever the source;
Improve risk management and governance;
Strengthen banks’ transparency and disclosures.
Attracting qualified staff is the most important component of any Basel III implementation strategy. Basel III knowledge is one of the main factors that make managers and employees indispensable for financial organizations around the world.
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COURSE OBJECTIVES
By the end of the course, you‘ll be able to:
- Gain knowledge and skills needed to understand the Basel III framework.
- Work in Basel III projects.
- Gain skills needed to pass the Certified Basel iii Professional (CBiiiPro) exam.
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COURSE AUDIENCE
This course is made for :
- Managers and professionals involved in Basel III (decision making and implementation)
- Risk and compliance officers
- Auditors
- IT professionals
- Analysts.
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COURSE OUTLINE
Day One
Introduction
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- What is Basel III?
- Basel III, the G20 and the FSB.
- The Bank for International Settlements (BIS).
- The Basel Committee on Banking Supervision.
- The Basel III Framework.
- National rules implementing Basel III.
Corporate Governance and Risk Management.
Sound corporate governance principles.
– a. Board practices.
– b. Senior management.
– c. Risk management and internal controls.
– d. Compensation.
– e. Complex or opaque corporate structures.
– f. Disclosure and transparency.
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- The role of supervisors.
Day Two
The regulatory capital.
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- Securities.
- Debt Securities.
- Bonds.
- Commercial papers.
- Equity securities (common stock).
- Preferred stock.
- Cumulative preferred stock.
- Contingent convertibles (CoCos).
- Perpetual and non-perpetual preferred stocks.
- Paid-up capital.
- Undisclosed reserves.
- Subordinated debt.
Day Three
The Risk Weighted Assets (RWA), the denominator.
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- Enhanced risk coverage.
- The RWA after the December 2017 Basel III reforms.
- The 2017 reforms concentrate on the RWAs (the denominator)
Credit Risk
The standardised approach (SA) for credit risk.
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- The internal ratings-based (IRB) approaches.
– a. The Foundation IRB (F-IRB).
– b. The Advanced IRB (A-IRB). - Standardised approach for credit risk.
- The new due diligence requirements.
- Exposures to sovereigns.
- Exposures to non-central government public sector entities (PSEs).
- Exposures to multilateral development banks (MDBs).
- Exposures to banks.
- The internal ratings-based (IRB) approaches.
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Day Four
Operational Risk
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- Reputational risk.
- Systemic risk.
- Strategic risk.
- The standardised approach methodology.
- The Business Indicator (BI).
- The Business Indicator Component (BIC).
The Liquidity Coverage Ratio (LCR).
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- Amendments to the LCR.
- The stock of high-quality liquid assets.
- Level 1 assets.
- Level 2 assets.
- Level 2B assets.
- Total net cash outflows.
Day Five
Risk Modelling, Stress Testing and Scenario Analysis.
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- Value-at-risk (VaR).
- Standard Normal Distribution.
- VaR shortcomings.
- Capture of systemic risk/tail events in stress testing and risk modelling.
The output floor (December 2017 update).
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- Reducing excessive variability of risk-weighted assets.
- Output floor requirements.
- Calculation of the output floor.
- Disclosure requirements.
- Implementation date and transitional measures.
