Enterprise-Wide Risk Management & Stress Testing

Course description

Since risk management has been formalised within Basel Accords, stress-testing has invariably been an after-thought. It has been hijacked by the accrued necessity to watch liquidity risk, therefore inducing banks into forgetting that stress-testing is, at any time, a good managerial practice. Most banks undergoing a real-life stress scenario reveal that their preparation, if any, was insufficient or at best optimistic, weaknesses have been put to light, and lessons have been learnt the hard and costly way.

In this practical 2 day course we distinguish between different types of stress-tests, between the useful ones and the costly ones, the regulatory and management ones, and run through the processes of selection, application, communication and learning from those scenarios. You will have a chance to analyse different real life challenges and explore the ways to overcome them.
Taught by an experienced banking practitioner and consultant with over 20 years of practice, the programme includes many case studies and exercises allowing you to get take away tools and strategies.

What will you learn

By the end of this course you will: 

  • Learn how to develop stress-testing models
  • Understand Basel II & III requirements for stress-testing
  • Learn how to carry out stress testing on an enterprise wide scale
  • Understand how stress tests can be used as an effective risk management tool
  • Understanding of the data demands of stress testing
  • Learn how to identify weaknesses in stress testing models
  • Be able to apply the stress-testing and scenario analysis: methodologies and structures

Main topics covered during this training

  • Defining stress-testing
  • Stress-testing under Basel II and III
  • Market risk scenarios
  • Credit risk scenarios
  • Operational risk scenarios
  • Implementation of VaR/ES
  • Processes, systems and controls
  • Stress-testing and scenario analysis; methodologies and structures
  • Case studies and group discussions

Who should attend

Banking and finance professionals involved in:

  • Market Risk Management
  • Credit Risk Management
  • Operational Risk Management
  • Risk Methodology
  • Risk Analysis
  • Model Validation
  • Regulatory and Economic Capital Basel III
  • Counterparty Risk
  • Stress Testing
  • Internal Audit
  • Finance and Treasury
  • Regulation  Compliance
  • Financial Institutions Advisory
  • Bank Supervision
  • Bank Regulation
  • Financial Stability and Economic

Enterprise-wide Risk Management & Stress Testing - A 2 Day Training Course

DAY 1

What is stress-testing
  • Concepts and classifications of risk
  • Routine risks and extreme risks
  • Enterprise-wide risk management
  • Internal and macro-scenarios
  • Uses and abuses

Extreme risk regulation before Basel III

  • Regulatory view on risk
  • What was missing in Basel II; the 2007 crisis
  • Stress-testing and practices
  • Lending principles and their consequences
  • Subprime and unruly waters
  • What should not have happened
Stress-testing in Basel II and III
  • Sources – The Basel papers
  • The new principles
  • The influence of liquidity risk
  • The new priorities and focus
  • Stress-testing, latest version
Pillars 2-3 and stress-testing
  • Capital Conservation
  • Treatment of SIFIs
  • Home supervisors, Host supervisors
  • Distribution and compensation policies
  • Model validation and model risk
  • Supervisory enforcement of capital conservation discipline
  • Risk governance

DAY 2

Market risk scenarios
  • Banking book and trading book
  • Interest Rate risk in the banking book
  • Implementation of VaR/ES
  • VaR and ES shortcomings: the normality assumption and others
  • Extreme market risks
  • Time series breakdowns; black swans
  • Review of a few scenarios
Credit risk scenarios
  • Capital requirements and their applicability
  • Credit crises and contagion
  • Credit risk to the test of confidence crises
  • Review of a few scenarios
Operational risk scenarios
  • The principles applied to extreme risks
  • Processes, systems and controls
  • Operational risk management tools & techniques
  • Loss event data and time series
  • Business process and data dependencies
  • Process-based risk management
  • Review of a few crisis scenarios
Stress-testing and scenario analysis; methodologies and structures
  • Regulatory and managerial principles
  • Stress-testing methodologies and processes
  • The data challenge
  • Scenario selection
  • Internal and external communication
  • Use of stress-testing and integration in risk governance
  • The rewards of stress-testing
Case studies and group discussions will be performed each day:
  • Selection of scenarios
  • Stress-testing in an international bank

 

Trainer

The Course Director is a Financial Risk Management Consultant with an international expertise in Risk Management methodological frameworks. His experience spans some 20 years, advising banks, software houses and others on risk management. The Course Director holds various degrees from London Business School, with post-graduate studies at the Technische (then West)-Berlin and Keio (Japan) universities. He is a published author on risk management and Basel Accords, and a regular speaker at conferences.

The client list includes ABN Amro, Barclays, CDC Paris, Credit Suisse, DePfa, Deutsche Bank, a few City hedge funds, IBM Consulting, Sungard, Lloyds TSB, National Bank of Egypt, the UK Regulatory body (then FSA, now PRA), Reuters, Singer and Friedlander and numerous other institutions of various countries and sizes. In addition to that, he runs training courses and workshops with participants from various banks around the world.

 

FAQ

We offer banking and finance courses as well as soft skills and business management training. You can either attend an open public course in London or Dubai or arrange customised in-house training to be delivered in any of your offices worldwide.

Most of our public courses are run over 2 full days. Some programmes are offered as a 1 or 3 day training.

In-house training is tailored to client’s requirements and can be organised over 1 day, 2-3 weeks or longer.

Public courses are organised mainly in London and Dubai. Occasionally we organise courses in other centres like Paris or New York. Check our public course calendar for the current list of programmes. We use a range of training venues, all in the centre of the cities and with excellent transport links to the airports and train stations.

In London we use venues in the centre (near Oxford Circus station or in Mayfair) or in the City (near Liverpool Street or Moorgate stations).

In Dubai our courses are organised in one of 4-5* hotels in the Deira district. Once you register we will send you detailed information together with accommodation options if required.

Our in-house courses can be delivered anywhere in the world. We work with over 25 trainers worldwide. Contact us do discuss your requirements. Check our list of available programmes.

Our courses are run in central locations from 9 a.m until 5-5.30 p.m. There are 2 coffee breaks and a lunch break. Lunch is always provided in the venue.

Dress code is smart casual.

All our programmes are taught by senior specialists who have spent many years in their respective sectors, working as senior managers and head of departments, so they understand very well the market and the challenges you are facing.

The experience of our trainers allows us to create very practical programmes, focused on current market trends and challenges. You can be sure that you will gain the knowledge which can be instantly applied in your workplace after the course. You will be analysing real life case studies, take part in group exercises and discussions as well as role plays, whenever applicable.

We want our courses to be as practical and interactive as possible so we limit the number of participants in order to optimise your time with the trainer and allow you to ask questions which are important for you.

In order to understand your requirements and expectations, we will send you a pre-course questionnaire.

You will also receive post-course support so if you have any questions after you left the training, you are welcome to contact us.

There are 2 easy ways to register:

  1. Go to the course of your choice and click Register Now button to fill the registration page
  2. Email us to enquiry@eurekafinancial.com

After you register, we will send you registration confirmation and an invoice so you can arrange the payment. Please note that your place is not confirmed until we receive it.

If you register within Early Bird discount period, there’s limited time to arrange the payment in order to be eligible for the discount. You will find all the details on the invoice.

We don’t advise to make any travel and hotel arrangements until you receive full course confirmation from us.

We will send you venue and course details as soon as possible but most likely about 3-4 weeks prior to the course commencement.

You can pay by:

  • Making a bank transfer
  • Debit/credit card
  • Cheque payable to Eureka Financial Ltd. - only within UK

Just mark preferred paying option on the registration form. Whichever form of payment you choose we will always send you an invoice.

If you pay by card, a 2.2% processing fee will be added. We will send you authorisation form so you can give us your card details.

Included in the price of a public course are:

  • Course tutorial
  • Take away course materials
  • Course Certificate
  • Lunch on the days of the training as well as drinks and snacks throughout the course

The price doesn’t include accommodation, flights, transfers and any additional costs outside of the training venue.

Yes, we always offer Early Bird discount, so the sooner you register the more savings you can make. We also offer group discounts and if you register for 2 or more programmes at the same time.

If you are a full time student or unemployed, we offer a 25% discount of the full price of the training. Student ID or unemployment status confirmation is required to claim this discount.

If you attend one of our courses you will be entitled to a special discount for a year after the last course you attend with us. Also, if you have attended and recommended us to a friend, both you and your friend will receive a special discount. You will receive more information about it after you attend the course.

See our Customer Loyalty Discounts page for more details.

All our courses based in the UK are subject to the VAT charge of 20%. This fee is irrespective of the country of residence of the delegates.

You can, however, claim the VAT back by contacting UK tax office - HMRC, and filling the relevant form, as long as you comply with the following rules:

For Delegates coming from the EU countries

If you represent a registered business in another EU country, you can use the Refund Scheme to reclaim VAT you pay in the UK as long as all of the following apply:

  • You're not registered for VAT in the UK and don't have to, or can't be, registered here
  • You don't have a place of business or a residence in the UK
  • You don't make any supplies in the UK

You can find some more information here. In order to claim the VAT you have to fill Form 65.

For the Delegates from Non EU countries

If you represent a registered business in a non-EU country, you can use the Refund Scheme to reclaim VAT you pay in the UK as long as all of the following apply:

  • You're not registered for VAT in the UK and don't have to, or can't be, registered here
  • You don't have a place of business or a residence in the EU
  • You can only use the Refund Scheme if your own country operates a similar scheme and makes it available to UK businesses. If your country has its own Refund Scheme but doesn't let UK businesses use it, you can't claim under the UK Refund Scheme.
  • You don't make any supplies in the UK

If the following rules apply to you, please fill the 65A form and send it to HMRC.

Webinars

You can cancel your participation up to a month before the course and receive a refund minus 10% of the full course value. Between 2-4 weeks before the course you will be charged 50% cancellation fee and if you cancel less than 2 weeks before the course you can only offer your place to a colleague. Up to 2 weeks before the course you can reregister for another edition for 10% reregistration fee if there is another webinar offered or you can rebook for a course in London by paying the difference in price plus 10% reregistration fee.

Classroom Courses

If there is any official travel restriction or difficulty related to the COVID pandemic around the time of the course we will convert the training into a webinar or offer to attend the next classroom edition at no extra cost.

If you are unable to attend the course, you can either send a replacement at no extra charge or, up to 10 days before the training, you can transfer your booking to another edition within the next 6 months paying administrative fee of 20% of the full course price. For any cancellation requests received between 11 days and 4 weeks from the course we offer 50% refund or reregistration to another edition for 25% of the value of the booking. For any cancellation requests received more than 4 weeks before the course date we will offer a refund less an administration fee of 10% of the full course price.

Cancellations must be made in writing (letter or email) and reach our office four weeks prior to the course date. We regret that only limited refunds can be given after this period as per points above. Non-attendance without any notification will be charged at full rate. Your place on a course is not guaranteed until we receive the payment. All payments must be made in full before the course date.

All our trainers have been working for many years in their respective sectors before they begun to teach so they bring a wealth of practical experience to the classroom.

Most of them used to work for 15 or more years in the financial sector and corporate world, and were holding positions of Directors, VP and Senior Managers. Some of them have published books and have written articles for specialised magazines and newspapers including FT, The Independent, The Times etc. You can find detailed biography of each trainer on the page of the course you want to register for.

Yes, you will receive a Certificate of Attendance at the end of the course you attend.

If you have to apply for a Visa to attend a course in the UK, we will issue a letter to support your application. The letter will be issued only after the payment for the course has been made.

It is delegate’s responsibility to obtain a Visa and failure to do so will not make the participant exempt from the cancellation policy.

Anyone suspected of applying for a training course simply to gain a Visa letter will be reported to their embassy.

We will need the following information to issue an invitation letter:

  • Full name as it appears on your passport
  • Date of birth
  • Passport number
  • Passport issue date
  • Passport expiry date

This topic can be arranged on in-company basis. If you have a group of 4 or more we can customise it and deliver in any location worldwide. Contact us to discuss your requirements

WHAT PAST DELEGATES SAY

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