Basel II and Credit RiskBasel II is a requirement for many banks. This course provides a comprehensive study of the credit, market and operational risk requirements. |
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| Credit and risk officers, business analysts working on Basel II, audit and compliance officers, regulators, finance and IT personnel. |
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| No advance preparation required. |
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Students will be able to:- Understand the background for and context of the Basel II Credit Risk requirements.
- Define the data requirements for the key calculations for all of the approaches and for all of the main exposure types.
- Execute the basic calculations for both the Standardized and IRB approaches.
- Understand the issues for Pillar 2 and Pillar 3 compliance.
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| General knowledge of banking products, preferably to include on and off balance sheet products and derivatives. |
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Focus on Risks and Risk Management- Identify key risks in financial institutions
- Evaluate interconnectedness of risks
- Evaluate why financial risks led to the Basel Accord and Basel II
Overview of the Basel Accord- Identify Herstatt risk
- Evaluate key factors leading to the Basel Accord
- Idenitfy key amendments to the Basel Accord
Overview of Basel II- Identify framework of Basel II and its objectives
- Identify Basel II's scope of application
- Evaluate interconnectedness of Basel II's pillars
- Differentiate between Basel I and II
Overview of Pillar I- Identify key concepts in Pillar I
- Define components of capital
- Identify application of Pillar I to credit risk
Minimum Capital Requirements for Credit Risk: Standardized Approach- Identify three approaches to credit risk measurement
- Evaluate inputs required for Pillar I approaches
- Evaluate requirements for Standardized Approach
Minimum Capital Requirements for Credit Risk: Internal Rating Based Approaches- Identify key aspects of the Foundation and Advanced Internal Rating Based approaches
- Explore ISDA concerns about advanced approaches
- Evaluate securitization guidance under Basel II
Treatment of SMEs- Evaluate requirements for SMEs
- Identify concerns with SMEs
Pillar I and Market Risk- Define market risk
- Identify market risk
- Evaluate market risk within Pillar I context
Pillar I and Operations Risk- Define operational risk
- Identify operational risk
- Evaluate operational risk within Pillar I context
Pillar II and Credit Risk- Identify key concepts in Pillar II
- Identify application of Pillar II to credit risk
Pillar III and Credit Risk- Identify key concepts in Pillar III
- Identify application of Pillar III to credit risk
Implications of and Compliance with Basel II- Evaluate different views on the proposed Basel II
- Identify concerns from different countries about readiness to comply
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| Clients who register for this course will receive a complimentary 6 month subscription to the Financial Times and FT.com. The Financial Times is the world's most respected financial newspaper, providing a broad assessment on finance, business and the industrial sector. Subscriptions will start within 6-8 weeks of the application process and are limited to one per client. For questions about your subscriptions call 800-628-8088 or email uscirculation@ft.com. US and Canada enrollees only. |
Lunch included for all students taking day classes. |
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