LATEST DEVELOPMENTS IN RISK MANAGEMENT & BASEL III FOR FINANCIAL INSTITUTIONS
Date: 25th July 2016 Venue: InterContinental, Kuala Lumpur
Conference Guide

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SIDC CPE - accredited: 10 CPE Points

Developments in the Basel global bank capital and regulatory framework are significant and ongoing, and are focusing on the overhaul of the standardized approaches for a multitude of risk exposure capital requirements. Other initiatives include the ongoing evolution of the Basel III framework, with specific focus on the Basel Committee on Banking Supervision’s restructuring of the standardized approaches for calculation of regulatory capital requirements. The 2016 finalization of the Basel Fundamental Review of the Trading Book change processes will culminate in a new market risk capital framework (effective 2018) with the issuance of the new Basel Market. These and other developments are covered in detail in this timely, one day seminar delivered by leading risk management experts. Also covered in detail will be the impact, scope and requirements of the Basel Pillar 2 ICAAP (Internal Capital Adequacy Assessment Process) as well as BCBS 239 Basel lll reporting requirements under Basel lll – which some observers have described as a very significant regulatory burden for Asian banks.

 

 

 

 

Key Outcomes

• Identifying key timelines, initiatives, objectives and outcomes of the Basel initiative and framework for financial institutions
• Analysing Basel Committee of Banking Supervision 239 Basel lll reporting requirements under Basel
• Understanding comparisons between the Basel II and Basel III bank balance sheet restrictions
• Examining the practicalities of the Internal Capital Adequacy Assessment Process (ICAAP) for financial institutions
• Identifying the very latest regulatory initiatives under Basel III: Interest Rate Risk Banking Book (IRBBB), revisions of Credit Risk Capital requirements, revision of Operational Risk Capital requirements
• Shifting a financial institution’s focus from a principle to a rules-based risk management approach
• How the changes introduced by Basel III will affect Islamic banks

 

Agenda

09:00 - 09:15 Introduction & welcome
09:15 - 10:30 Session 1: Undertaking an Overview of the Basel lll Developments since 2009 and Understanding How Financial Institutions are Impacted
  • Examining the work of the Basel Committee of Banking Supervision (BCBS)
  • Identifying key timelines, objectives and outcomes of the Basel initiative and framework
  • Assessing Basel III and its impact on different types of banks: international, Asian-based, GCC-based institutions
  • Implications of Basel III capital, leverage and liquidity ratios on bank balance sheet structures
  • Undertaking a comparative analysis of the Basel II and Basel III bank balance sheet restrictions and economics
Panelist: Douglas Bongartz Renaud — Former Global Head of Currency Derivatives and Global Head of Rate Derivatives and Structured Products, ABN AMRO
10:30 - 11:00 Coffee
11:00 - 11:45 Session 2: Examining the Practical Impact of Basel lll on Asian Banks and Successfully Incorporating the Internal Capital Adequacy Assessment Process (ICAAP)
  • Analyzing the Internal Capital Adequacy Assessment Process (ICAAP) for financial institutions: Pillar 2 ICAAP under Basel lll
  • BCBS 239 Basel lll reporting requirements under Basel lll - the real regulatory burden for Asian banks
  • Addressing key challenges for financial institutions
Panelist: Eckart Koerner — Executive Director, PwC
11:45 - 12:30 Session 3: Embracing New Regulatory Philosophies Embedded in Basel lll
  • Shifting a financial institution’s focus from a principle to a rules-based risk management approach
  • Strategies to focus on a stress testing-based macro-prudential regulatory approach
  • Analysing the implications of systemic risk, moral hazard ('too big to fail'), and the development of Living Wills for financial institutions
  • Moving Pillar 2 risks into the Pillar 1 framework, and assessing the implications
Panelist: Eckart Koerner — Executive Director, PwC
12:30 - 13:45 Luncheon
13:45 - 14:45 Session 4: Examining Major Recent Changes under Basel lll on Financial Institutions
  • Overview of requirements on counterparty credit risk capital and central clearing (2014)
  • Analysing recently revised Market Risk Capital requirements and finalizing the Fundamental Review of the Trading Book process (January 2016)
  • Examining the final decisions on Interest Rate Risk Banking Book (IRBBB) capital revisions (April 2016)
  • Assessing the current status of the two significant remaining changes under the consultation process:
    - Revisions of Credit Risk Capital requirements - new standardized and revised Internal Ratings based approaches, the Basel advanced model-based method for calculating credit risk regulatory capital
    - Complete revision of Operational Risk Capital requirements
Panelist: Douglas Bongartz Renaud — Former Global Head of Currency Derivatives and Global Head of Rate Derivatives and Structured Products, ABN AMRO
14:45 - 15:45 Session 5: Analysing the Impact of Basel lll on Islamic Financial Institutions
  • Identifying how the changes introduced by Basel III will affect Islamic banks and their operations
  • Assessing Basel III and the specific challenges regarding capital quality and buffers, and liquidity ratios for Islamic banks
  • Other issues and how they are applicable to Islamic banks and financial institutions
Panelist: Sophia Lee — Co-Head of Financial Institutions, Rating Agency Malaysia
15:45 Coffee and Networking