Integrated Stress-testing for Financial Institutions: Credit, Market, Operational & Liquidity Risks
A 12-hour, online training program
Date: 15th, 16th, 17th & 19th August 2022
Stress-testing is essential to banks and regulators. It forms the backbone of a bank’s ICAAP (Internal Capital Adequacy Assessment Process), and answers a simple question: can a bank survive extreme but plausible scenarios which adversely impact its profitability, liquidity, and capital adequacy? However, stress-testing is complicated. It requires an integrated approach starting with how scenarios should be selected and calibrated, and how these scenarios ultimately translate into financial impact whilst respecting the various interrelationships between different types of risks.
This course has been designed for practitioners needing to understand how to implement and/or improve stress-testing frameworks in their banks. Since credit risk is central to the business models of most financial institutions, the course starts by taking a deep-dive into credit risk stress-testing by building an evolution of PDs (probabilities of default) based on stress-testing scenarios, and then translating scenario parameter values into financial impact using the staging rules of IFRS9. Stress-testing for market risk is explained by using numerical illustrations of how losses are determined for interest-rate risk in the banking book, FX exposures, equity portfolios, and bond investments. For operational risk stress-testing, the course shows how to capture high-frequency low impact events as well as low-frequency high impact events. Liquidity risk stress-testing is also explained, including how to embed the impact on bank survival of an inability to refinance funding liabilities when credit conditions deteriorate.
The course provides significant opportunity for discussion and questions, and is aided most importantly by clear illustrations and numerical examples which assist in learning several different methodologies and techniques that can be immediately applied in practice.
1 participant: RM2,900/$750
2 participants: RM5,800/$1,500
3 participants: RM8,700/$2,250
4 participants: RM11,600/$3,000
5 participants: RM14,500/$3,750
Early Payment Discount: Payments made on or before 8th August 2022 will receive a 7.5% discount. Payments received after this date will be re-invoiced for the full amount.
If you are looking for an in-house training program or wish to send a group to an existing public program, kindly please contact Andrew Tebbutt at [email protected] or +603 2162 7802.
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For enquiries please contact:
Normariya Sariman
Account Manager, REDmoney Seminars
[email protected]
Direct Line: +603 2162 7800 ext 44
Ramesh Kalimuthu
Events Sales Director
[email protected]
Direct Line: +603 2162 7800 ext 65
Fax: +603 2162 7810
For sponsorship & speaking opportunities:
Andrew Tebbutt
Managing Director
[email protected]
Direct Line: +603 2162 7802
For marketing and media enquiries
Govina Selvanthran
Marketing Manager
[email protected]
Direct Line: +603 2162 7800 ext 22
Integrated Stress-testing for Financial Institutions: Credit, Market, Operational & Liquidity Risks
A 12-hour, online training program
Date: 15th, 16th, 17th & 19th August 2022
Send me Details
Excessive credit growth is at the heart of all financial crises. Relaxed lending conditions often lead economies to overheat, resulting in speculative bubbles and over indebtedness. When economic conditions deteriorate and obligors become distressed, banks cut their losses and make new credit far harder to obtain, thereby exacerbating a contraction in the real economy that has already started. This economic scenario is exactly what regulators and central banks wish to avoid. It is also a scenario that creates unnecessary losses for banks that do not know how to minimize risk through proper credit evaluations prior to lending, nor how to effectively monitor obligors to reduce credit risk on an ongoing basis up to maturity. These activities are all the more important given credit risk has no observable price, unlike market risk, which is therefore more easily managed.
This course offers a valuable and timely opportunity for banking practitioners to gain knowledge and skills which can be directly applied in practice to strengthen their bank’s credit risk measurement frameworks and credit risk management initiatives. The course details contemporary techniques covering how credit risk arises at the product level, and how it can be measured and managed within both retail and corporate banking businesses. The course also provides a deep dive into internal models used by banks to manage and price risk in order to minimize capital charges, as well as coverage of external credit rating agency (ECAI) models applied by S&P, Moody’s and Fitch to rate banking entities and individual bond issuances (including Sukuk).
The course includes a high level of interaction and practical instruction that allows delegates to implement skills and techniques learned on the course in everyday use.
This 12-hour, online training program will be delivered online through a stable, secure and free-to-access platform. The program itself will be delivered through lectures, worked examples and case studies in order to ensure a detailed and practical understanding of the program content. Participants will have plenty of opportunity to ask questions and interact with the program director. Login details and program materials will be sent to participants upon receipt of payment
1 participant: RM2,900/$750
2 participants: RM5,800/$1,500
3 participants: RM8,700/$2,250
4 participants: RM11,600/$3,000
5 participants: RM14,500/$3,750
Early Payment Discount: Payments made on or before 8th August 2022 will receive a 7.5% discount. Payments received after this date will be re-invoiced for the full amount.
If you are looking for an in-house training program or wish to send a group to an existing public program, kindly please contact Andrew Tebbutt at [email protected] or +603 2162 7802./p>
Each session will be interactive in a seminar format, with participants encouraged to engage with questions throughout.
This 12-hour, online training program will be delivered online through a stable, secure and free-to-access platform. The program itself will be delivered through lectures, worked examples and case studies in order to ensure a detailed and practical understanding of the program content. Participants will have plenty of opportunity to ask questions and interact with the program director. Login details and program materials will be sent to participants upon receipt of payment
Dr Ken Baldwin
Former Director, Financial Policies & Planning, Islamic Development Bank
Dr. Ken Baldwin has worked as a practitioner in banking and finance for over 25 years in senior positions spanning the front and middle offices. Having graduated from Oxford University with a first-class honors degree in Physics in 1989, he qualified as a Chartered Accountant with PWC, before joining UBS, and then later Credit Suisse, in derivatives risk and control functions based in London.
He gained a PhD in microeconomics, and worked in the GCC for 15 years in retail and investment banks. Whilst at Abu Dhabi Islamic Bank, Dr. Ken built an ALM analytic technology platform capable of capturing liquidity and interest rate risks inherent in the many varied financing products used at retail and corporate levels. He then moved to take up the position of MENA Regional Head of Quantitative Analysis for Citigroup. At Citicorp, Dr. Ken worked on structuring complex derivatives products used by Gulf-regional corporations to hedge FX and interest rate risks. Still residing in Bahrain, Dr. Ken then joined Investcorp, where he worked on the risk due diligence of corporate private equity and real estate private equity transactions and portfolio management. After leaving Investcorp, he set up the risk management department for venture capital bank, providing Basel III compliance and deal analysis for the bank. He then operationalized a new Islamic investment bank as its Chief Operating Officer for 3 years, before his most recent industry role at the Islamic Development Bank, where he set up and ran a new department tasked with developing financial policies and risk-based pricing of the bank’s Islamic financing products. Dr. Ken is currently an Assistant Professor of Finance in the UK. He has published quantitative finance articles in peer-reviewed academic journals including the Journal of International Financial Markets Institutions and Money, and the Journal of Risk, and during his earlier career, taught CFA and FRM professional certifications as a pastime for the Bahrain Institute of Banking and Finance.
For enquiries please contact:
Normariya Sariman
Account Manager, REDmoney Seminars
[email protected]
Direct Line: +603 2162 7800 ext 44
Ramesh Kalimuthu
Events Sales Director
[email protected]
Direct Line: +603 2162 7800 ext 65
Fax: +603 2162 7810
For sponsorship & speaking opportunities:
Andrew Tebbutt
Managing Director
[email protected]
Direct Line: +603 2162 7802
For marketing and media enquiries
Govina Selvanthran
Marketing Manager
[email protected]
Direct Line: +603 2162 7800 ext 22