CREDIT RISK ASSESSMENT
- Understanding Credit Risk
- Definition and components of credit risk
- Factors influencing credit risk in banking
- Importance of credit risk management
- Credit Risk Measurement Techniques
- Probability of Default (PD) estimation
- Loss Given Default (LGD) modeling
- Exposure at Default (EAD) calculation
- Credit Rating Systems
- Internal vs. external credit ratings
- Rating scales and their applications
- Limitations of credit ratings
- Credit Risk Mitigation Strategies
- Use of collateral and guarantees
- Credit derivatives and hedging techniques
- Loan covenants and their role
- Case Study: Credit Risk Evaluation
MARKET RISK ANALYSIS
- Introduction to Market Risk
- Types of market risk: interest rate, equity, currency, and commodity
- Impact of market volatility on financial institutions
- Value at Risk (VaR) Methodology
- Historical simulation approach
- Variance-covariance method
- Monte Carlo simulation technique
- Stress Testing and Scenario Analysis
- Designing stress scenarios
- Assessing the impact of extreme market conditions
- Interpreting stress test results
- Hedging Market Risk
- Derivatives as hedging instruments
- Hedging strategies and their effectiveness
- Regulatory considerations in hedging
LIQUIDITY RISK MANAGEMENT
- Understanding Liquidity Risk
- Sources of liquidity risk in banking
- Importance of liquidity risk management
- Liquidity Measurement Tools
- Liquidity Coverage Ratio (LCR)
- Net Stable Funding Ratio (NSFR)
- Cash flow gap analysis
- Liquidity Risk Management Strategies
- Contingency funding plans
- Asset-liability management techniques
- Diversification of funding sources
- Regulatory Frameworks for Liquidity
- Basel III liquidity standards
- Local liquidity regulations
OPERATIONAL RISK CONTROL
- Defining Operational Risk
- Sources of operational risk in banking
- Importance of operational risk management
- Risk Identification and Assessment
- Risk and control self-assessment (RCSA)
- Key Risk Indicators (KRIs)
- Scenario analysis for operational risks
- Operational Risk Mitigation Techniques
- Internal controls and procedures
- Business continuity planning
- Regulatory Requirements for Operational Risk
- Basel II and III operational risk guidelines
- Reporting and compliance obligations
RISK QUANTIFICATION TECHNIQUES
- Quantitative Risk Measurement
- Statistical approaches for measuring risk
- Evaluation of risk-adjusted returns
- Assessment of portfolio-level risk exposure
- Advanced Risk Modeling
- Credit portfolio models (CreditMetrics, CreditRisk+)
- Market risk models (GARCH, EWMA)
- Liquidity risk measurement models
- Integration of Risk Models
- Consolidation of credit, market, and liquidity models
- Enterprise-wide risk management framework application
- Capital adequacy and risk-based capital assessment
- Model Validation
- Validation techniques for risk models
- Alignment with regulatory model expectations
REGULATORY COMPLIANCE KNOWLEDGE
- Overview of Regulatory Environment
- Key global regulatory bodies
- Major regulations impacting banking risk management
- Basel Frameworks
- Basel I, II, and III capital adequacy standards
- Liquidity and leverage ratios
- Local Regulatory Requirements
- Local regulations and guidelines
- Compliance reporting obligations
- Regulatory inspections and audits
- Risk Governance
- Role of the board and senior management
- Internal audit and compliance functions
STRATEGIC RISK REPORTING
- Importance of Risk Reporting
- Role of risk reporting in decision-making
- Stakeholders in risk reporting
- Frequency and timing of reports
- Risk Reporting Frameworks
- Structure and content of risk reports
- Key risk indicators KRI and metrics
- Visuals and dashboards
- Regulatory Reporting Requirements
- Compliance with regulatory reporting standards
- Accuracy of reports
- Consequences of non-compliance
