Duration 5 days – 35 hrs
Overview.
The Enterprise Risk Management (ERM) for Banks Training Course is designed to provide banking professionals with a comprehensive understanding of ERM principles and practices. This course focuses on developing a holistic approach to managing all types of risks in banking—including credit, market, operational, and liquidity risks—through an integrated ERM framework. Participants will learn how to create risk governance structures, establish risk appetite, align with regulatory standards, and foster a risk-aware culture within the organization.
Objectives
- Integrating different types of risks under a single, unified framework.
- Establishing risk governance structures and defining risk appetite.
- Developing an ERM strategy aligned with regulatory compliance.
- Embedding a culture of risk awareness within the organization.
Audience
- Directors, chairpersons, and members of audit, risk, and governance committees.
- Senior management involved in decision-making and strategic governance oversight.
- Risk Managers and Officers in charge of overseeing multiple risk types.
- Bank Executives and Directors involved in strategic planning and governance.
- Finance and Compliance Professionals responsible for aligning risk management with regulatory standards.
- Internal Auditors and Risk Assessment Teams focused on identifying and mitigating risk.
- Business Line Managers who oversee operations within a bank and want to integrate ERM into their areas.
Pre- requisites
- Basic knowledge of banking operations and risk management principles.
- Familiarity with regulatory requirements specific to banking.
- Experience in risk management or compliance (recommended but not mandatory).
Course Content
Day 1: Introduction to Enterprise Risk Management in Banking
Understanding ERM Principles and Benefits
- Definition and objectives of ERM
- Key benefits of implementing ERM in banks
- Comparison between traditional risk management and ERM approaches
Types of Risks in Banking
- Overview of credit, market, operational, and liquidity risks
- Other emerging risks (e.g., cybersecurity, reputational)
- The importance of integrating risks under ERM
Case Study Discussion
- Examples of ERM implementation in global and local banks
Day 2: Establishing a Risk Governance Structure
Building a Risk Governance Model
- Roles and responsibilities of the board, risk committees, and executives
- Risk reporting lines and communication protocols
- ERM in relation to corporate governance
Developing a Risk Management Policy
- Key components of a risk management policy
- Policy alignment with bank objectives and regulatory standards
Workshop on Risk Governance
- Practical exercise on designing a risk governance model for a sample bank
Day 3: Defining Risk Appetite and Fostering Risk Culture
Establishing Risk Appetite
- Defining risk appetite and risk tolerance
- Setting quantitative and qualitative risk limits
- Communicating risk appetite across the organization
Building a Risk-Aware Culture
- Importance of fostering a risk-aware culture
- Training and awareness programs for bank employees
- The role of leadership in promoting a risk culture
Case Study and Group Exercise
- Analyzing real-life examples of risk culture success and failure
Day 4: Implementing an ERM Framework for Banks
Introduction to ERM Frameworks
- Overview of COSO and ISO 31000 ERM frameworks
- Key components of an ERM framework for banks
- Implementing ERM in line with Basel III and other regulatory standards
Strategic Risk Management
- Integrating ERM with strategic planning
- Balancing risk and return in decision-making
- Risk-adjusted performance measures
Workshop on ERM Frameworks
- Designing an ERM framework for a hypothetical bank scenario
Day 5: Regulatory Alignment and ERM Monitoring
Aligning ERM with Regulatory Requirements
- Understanding local and international banking regulations (e.g., Basel III, Bangko Sentral ng Pilipinas guidelines)
- Regulatory reporting and compliance processes in ERM
- Managing capital adequacy and liquidity requirements
ERM Monitoring and Continuous Improvement
- Tools and methods for monitoring ERM performance
- Key risk indicators (KRIs) and risk dashboards
- Regular reviews and updates to the ERM process
Final Workshop and Group Presentation
- Developing a risk management action plan for continuous ERM improvement
- Group presentations of ERM frameworks and action plans
