Risk Management for Board of Directors
In-Company Training
The risk oversight function of the board of directors has never been more critical and challenging than it is today. In the context of the current crisis companies face risks that are more complex and potentially more dangerous than ever before. That leads to increased regulatory focus on risk management and risk prevention.
But what exactly is the role of the board in corporate risk management? During this 2 day course you will have a chance to learn about the key tools and best practices to organise risk oversight function in an organisation.
From governance structures, board responsibilities and the role of various committees as well as duties of non-executive directors and the scope of enterprise risk management, you will have a chance to explore the main processes and risk management strategies which can be applied in your organisation. You will also learn about recent regulatory changes affecting financial sector.
To see detalied course programme click here
By the end of this course you will:
- Understand the risk management process, including risk identification, assessment/analysis, measurement, control and monitoring
- Gain an insight into the importance of corporate governance as a key factor in the effective implementation of sound risk management policies and practices
- Understand key risk control monitoring practices and the importance of balancing controls against business goals and objectives
- Have opportunities to apply concepts learned against “real” risk related activities, including risk assessments and implementation plans that can be used to the benefit of your organization
- Be better positioned to lead/participate strongly in efforts to transform their company’s risk management activities into value enhancing capabilities
The course is designed for Board Members, CEOs and C-level executives, Chief Risk Officers Chief Auditors, Regulatory supervisors and others involved in risk oversight.
Who Should Attend
Executive and Non-executive directors of banks and other financial institutions
The course is especially suited for those serving on the risk management committees of their boards.
Knowledge Pre-Requisites
Basic knowledge of finance and commerce would be advantageous.
Teaching Method
Trainer will be focused on teaching practical strategies that can be taken back to your business and put into immediate effect.
In order to help us establish your individual and business concerns, you will be asked to fill pre-course questionnaire.
Because of the nature of the course the number of places is limited and will be filled on first come, first accepted basis. We advise to book in advance in order to avoid disappointment.
Risk Management for Board of Directors - A 2 Day Programme
The Board and Risk Management – An overview
- Governance Structures including Boards and Committees
- Responsibilities of the Board
- Role of the Directors
- Sub-Committees
- Executive Management Committee
- Nominating Committee
- Remuneration Committee
- Risk and Control Committees
- Audit Committee
- Risk Committee
- Asset and Liability Committee
- Credit and Lending Committee
- Operations Committee
- Committee Membership
- Committee Terms of Reference
Roles and Responsibilities of Non-Executive Directors
- Different roles as between Executive and Non-Executive Directors
- Represent the interests of the shareholders
- Provide independent advice and guidance
- Challenge the board over strategy, risks and controls
- Manage areas of potential conflict within the board and committees
Key Challenges for the Non – Executive Director
- Identifying and managing the important risks and danger areas
Review of Typical Banking Services and Products
- Services: Corporate Banking, Commercial Banking, Investment Banking, Retail/Consumer Banking, Private Banking, Asset Management, Insurance, Custody, Trusteeship
- Products: Deposits, Loans, Lease Finance, Treasury Services, Foreign Exchange, Credit Cards, Broking Services and Market Making, Clearing and Settlement, Administration Services, White Labelling
Key Areas of Risk for Boards
- Business Risks
- Banana Skins
The Main Areas of Risk
- Credit Risk
- Market Risk
- Liquidity Risk
- Operational Risk
- Strategic Risk
- Reputation Risk
Other Key Risk Areas
- Strategy
- Reputation
- Conflicts
- Regulatory
- Legal
- Outsourcing
- Customers and Clients
Financial Crime
- Theft
- Fraud
- Anti Money Laundering
- IT Security
- Data Security
- Information Security
- Market Abuse
- Insider Dealing
- Behavioural issues – eg miss-selling, product bias
Risk Management Techniques, Measurement and Management
- Policies
- Procedures
- Identification
- Assessment
- Analysis
- Evaluation and Measurement
- Review
- Loss Databases internal and external
- KRIs
- RCSA
- Other sources of information
- Internal- litigation, disputes and complaints, Errors Fines and losses, surveys and client wins
- External - third party events, environment, terrorism
Control Departments and their Roles
- Compliance
- Internal Audit
- Risk Management
Regulation and Capital
- Introduction to Basel II
- ICAAP
Enterprise Risk Management
- Key Significant Risk Management Process
- Structure: CRO/ERM dept policies and procedures
- Defining Scope
- Management and Control
- Board, management and committees
- Reports and Reporting - Information v Data, easy to follow and easy to
understand
- Benefits of Synergy and Consolidation - the big picture altogether
Organisational Structures and Processes for Risk Management
- Independent Assurance and Oversight and External Validation
- Internal Control and Oversight Functions
- COSO
- SAS 70 Controls Reports
- Whistleblowing
International and Current Risks
- Recent Events, Issues and Hot Topics
- The credit quake
- Why do things go wrong
Summary of Key points for Non-Executive Directors
Mark Andrews
Mark is a banker with over 30 years experience in the UK corporate, investment and retail banking sectors. He qualified as an associate of the Chartered Institute of Bankers in 1981 finishing as the top candidate for the year with distinctions in International Trade and winning the Whitehead Prize for Monetary Theory.
Mark joined Lloyds Bank in the 1970’s after where he was appointed one of the first managers in the bank’s Corporate Banking Division. His duties included corporate governance, investment appraisals, credit control, control of lending by junior colleagues, direct lending and relationship management for individual companies and sectors.
During the 1980s Mark was appointed as one of the youngest Lloyds London City branch managers specialising in lending to employees of international bank clients and money market institutions. Duties included all aspects of lending control and the supervision at area level of lending by 5 retail branches which reported to him. Mark was subsequently promoted back to the Corporate Banking division as a senior corporate manager responsible for corporate governance and more complex treasury, banking, international trade and investment requirements of the bank’s largest clients, included some of the largest global energy companies, hotel groups, and construction companies.
From 1990-2001 Mark served as a Director of Granville Bank – a private bank which specialised in client wealth management, secured lending and investment and treasury business – and was a main board director of Granville Holdings Plc, the parent company, a London City based merchant bank which itself specialised in high value clients, both corporate and private.
For the past 9 years Mark has lectured extensively in Africa, the Middle East and Europe. Mark is an expert on corporate governance, Islamic finance and is also a subject specialist in investment, commercial and retail banking and finance.
In-Company Training
If you have a team of 4 or more this course can be customised and organised in-house at your convenience. Contact one of our advisors to find out more.
Call us now on +44 (0) 207 993 8597
or send an e-mail to enquiry@eurekafinancial.com
