Duration 3 days – 21 hrs
Overview.
This comprehensive training course on Basel III and Risk Management is designed to equip banking professionals in the Philippines with a thorough understanding of the Basel III regulatory framework. It emphasizes the framework’s impact on risk management practices, capital requirements, and resilience-building within financial institutions. Through this training, participants will gain insights into the critical components of Basel III and practical strategies for compliance, risk mitigation, and stress testing, all tailored for the banking environment in the Philippines.
Objectives
- Understand the Basel III regulatory framework and its implications for banks.
- Analyze the capital requirements and leverage ratios under Basel III.
- Comprehend the role of countercyclical capital buffers in financial stability.
- Apply stress testing techniques aligned with Basel III standards.
- Understand Pillar 3 disclosures for improved transparency in risk management practices.
Audience
- Risk Managers and Analysts
- Compliance Officers
- Banking Professionals in Risk and Regulatory Compliance roles
- Financial Controllers and Accountants in Banking
- Executives involved in bank capital management and financial stability
- Internal Auditors specializing in regulatory compliance and risk assessments
Pre- requisites
- Basic knowledge of banking operations and risk management concepts.
- Some understanding of previous Basel frameworks (Basel I and II) is beneficial but not required.
Course Content
Introduction to Basel III Framework
- Overview of Basel Accords: Basel I, II, and the evolution to Basel III
- Objectives of Basel III in enhancing bank resilience
- Key differences between Basel II and Basel III
Basel III Capital Requirements
- Capital adequacy and its importance in the banking sector
- Breakdown of capital components: Tier 1 and Tier 2 capital
- Minimum capital requirements and quality of capital
- Introduction to Common Equity Tier 1 (CET1) requirements
Leverage Ratio Framework
- Understanding the leverage ratio in Basel III
- Calculation and impact on bank stability
- Integrating leverage ratio management in daily operations
Countercyclical Capital Buffers
- Purpose and significance of countercyclical capital buffers
- Role in economic cycles and financial stability
- Practical application of buffers to mitigate systemic risks
Stress Testing under Basel III
- Types of stress testing required under Basel III
- Conducting stress tests to assess resilience under adverse conditions
- Designing stress scenarios and interpreting results
- Regulatory expectations and best practices in stress testing
Pillar 3 Disclosures
- Overview of Pillar 3 and the role of disclosures in transparency
- Key areas covered by Pillar 3, including risk exposure and risk management
- Improving market discipline through transparent reporting practices
Risk Management Practices Aligned with Basel III
- Integrating Basel III into daily risk management operations
- Aligning Basel III with enterprise risk management (ERM) frameworks
- Understanding the implications for liquidity, market, and operational risk management
Case Studies and Practical Application
- Case studies of Basel III implementation in international and Philippine banks
- Lessons learned and best practices in risk management under Basel III
- Workshop: Conducting a risk assessment and calculating capital buffers based on simulated scenarios
Regulatory Compliance and Future Trends
- Overview of regulatory expectations in the Philippines
- Adapting to upcoming revisions and amendments to Basel III
- Preparing for Basel IV: Emerging trends and considerations for banking professionals
