This seminar
has been designed to provide an individual with
the knowledge and skills needed to understand
and support the regulatory requirements of Basel
II compliance.
Objectives:
The seminar
will give you the ability to:
Describe the developmental curve of the
regulatory emphasis on enterprise-wide operational
risk management.
Demonstrate a practical understanding of
the core concepts involved in Basel II Advanced
Measurement Methods for allocation of capital
to operational risk, their respective advantages
and limitations.
Define hands-on strategies and techniques
for the definition, measurement, analysis,
improvement, and control of operational risk
within a banking organization.
Apply the concepts and skills attained during
the course to work in groups and frame solutions
for real-life case studies involving operational
risk.
Target Audience:
This course
is recommended for all professionals who need
to understand and speak the specialized language
of Basel compliance.
C – Level Executives and Boards of
Directors
IT and Information Security Directors,
Managers and Professionals
Chief Risk and Compliance Officers
IT and Security Process Owners
Network, System and Security Administrators
IT Auditors
IT, Security and Management Consultants
Course Synopsis:
The
Bank for International Settlements (BIS)
First Basel Capital
Accord
Formulating broad supervisory standards
and guidelines
Regulatory and economic capital
Basel I amendments
The New Basel Capital Accord (Basel II)
Realigning the regulation with the economic
realities of the global banking markets
The three-pillar regulatory structure
Purposes of Basel II
Employees Affected
Framework for internal control systems in banking
organizations - Basel Committee on Banking Supervision
The 13 Principles for the Assessment of
Internal Control Systems
The 13 Principles and COSO
The control environment
The objectives and role of the internal
controls framework
The major elements of an internal control
process
Evaluation of internal control systems by
supervisory authorities
Role and responsibilities of external auditors
Operational Risk Approaches
Basic Indicator Approach (BIA)
Standardized Approach (SA)
Alternative Standardized Approach (ASA)
Advanced Measurement Approaches (AMA)
Internal Measurement Approach (IMA)
Loss Distribution (LD)
Standard Normal Distribution
“Fat Tails” in the normal distribution
Expected loss (EL), Unexpected Loss (UL)
Value-at Risk (VaR)
Stress Testing
Stress testing and Basel
(AMA) Advantages / Disadvantages
Operational Risk Measurement Issues
The game theory
Operational risk sound practices
Operational risk mitigation
Insurance to mitigate operational risk
Third-party service providers and vendors
Basel II and other regulations
Basel and other regulations
Governance issues
Capital Requirements Directive (CRD)
Markets in Financial Instruments Directive
(MiFID)
What will be the impact of MiFID to EU
and non EU banks?
Aligning Basel II operational risk and
Sarbanes-Oxley 404 projects
Common elements and differences of compliance
projects
