Certified Banking Risks Professional

Certified Banking Risks Professional

Understand the basics of how banks acquire measure and manage various risks and also what are Basel II and Basel III Accords – global standards on maintenance of capital adequacy. Each and every activity of a bank involves risks and some of them can lead to its collapse. A bank must always manage all the risks to remain solvent and profitable. The three days Certified Banking Risks Professional (CBRP-FL) is a foundation level program extensively focused on basics of risk management in banks, including credit risk, market risk, operational risk and liquidity risk. The program also includes familiarization with the basics of risk based supervision approach, risk management system in banks and essential aspects of the Basel II and Basel III Capital Accords. 
Risk management and risk control techniques have assumed paramount importance in banking business. Risk is inherent to a bank’s business model and therefore effective risk management is very critical. Main objective of this program workshop is to understand how risks are categorized, quantified, monitored and managed within banks.
The participants will be exposed to the requirements of Basel II and Basel III
Accords and Credit Risk from both, the regulatory and practitioner perspective. The impact upon financial institutions and the implications for bank risk management, governance and disclosure will be reviewed.

Duration: Four full days

Course level: Foundation level

Delivery mode: Live Classroom, Virtual Classroom, Blended

What will you learn?

When you complete this course, you will have total understanding of :

  • Basics of risk management and derivatives
  • What is risk based supervision?
  • Various risks faced by banks
  • How does a bank acquire, measure and manage risks e.g. credit risk, market risk, operational risk and liquidity risk?
  • Systems/procedures needed to track and monitor risks
  • What do Basel II and Basel III Accords prescribe?
  • Important role of information technology in bank’s risk management framework 

Course Content:

Basics of Risk Management

  • What is Risk
  • Risk Management Process
  • Basics of Derivatives
  • Banking Products/Services and Associated Risks
  • Banking Risks – Concepts of Credit, Market ,
  • Operational and Liquidity Risks
  • Integrated Approach to Risk Management

Introduction to Basel II/III Capital Accords

  • Structure and Objectives
  • Comparison of the Old and New Accords
  • Introduction to Basel II Pillars I, II and III
  • Expected Losses and Unexpected Losses
  • Tier I and Tier II Capital
  • Concept of Regulatory Capital and Economic Capital
  • Use of Risk Based Pricing and Provisioning
  • Basel III on Capital and Liquidity Management
  • Basel Principles of Effective Risk Data Aggregation and Risk Reporting

Introduction to Credit Risk

  • Concept of Credit Risk
  • Credit/Lending Process in Brief
  • Exposure and Credit Conversion Factors
  • Types of Credit Risk
  • Transaction Risk/Portfolio Risk
  • Counterparty Credit Risk
  • Pre-settlement /Settlement Risk
  • Measurement of Credit Risk
  • Credit Models and Score Cards
  • Credit Rating and Credit Scoring
  • Value at Risk (VaR)
  • Mitigation of Credit Risk
  • Limits and other Safeguards
  • Use of Collateral
  • Guarantees and Credit Derivatives
  • On-Balance Sheet Netting
  • Basel II approaches for Credit Risk
  • Standardized Approach
  • Internal Ratings Based Approach
  • Understanding PD, EAD, LGD and K (Capital)

Introduction to Market Risk

  • Concept of Market Risk
  • Components of Market Risk
  • Trading Books V/s. Banking Book
  • Market Risk Measurement e.g. Gap Analysis, VaR
  • Market Risk Mitigation Techniques
  • Basel Market Risk Amendment, 1996

Introduction to Operational Risk

  • Concept of Operational Risk
  • Sources of Operational Risk viz. People, Systems,
  • Procedures and External Events
    1. Measurement of Operational Risk
    2. Basel II Approaches for Operational Risk
    3. Basic Indicator Approach
    4. Standardized Approach
    5. Advanced Management Approach

Introduction to Liquidity Risk

  • Concept of Liquidity Risk
  • Types of Liquidity Risk
  • Importance of Liquidity Risk
  • Concept of Assets and Liability Management
  • Measurement of Liquidity Risk
  • Mitigation of Liquidity Risk
  • Basel III Requirements
  • Liquidity Coverage Ratio
  • Net Stable Funding Ratio

Risk Based Supervision (RBS) Approach

  • Concept of Risk Based Supervision

Certified Banking Risks Professional pdf


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