Course Background:
With the continuous growth of economic strength and international status, China is gradually becoming one of the main driving forces leading the world's economic and financial recovery. In the 2013 list of global systemically important banks released by the Financial Stability Board, an international financial supervisory and coordinating body, ICBC was selected for the first time after Bank of China, indicating the trend of China's banking institutions towards internationalization, and at the same time putting forward higher requirements for the financial risk management level of Chinese financial institutions.
This course attempts to expound the latest concepts and tools of international financial risk management, integrate with domestic regulations, regulations and management practices, and describe domestic and foreign risk loss cases in recent years, hoping to deepen the understanding of financial risk management and improve the ideological awareness of financial workers in this field.
This course describes the four major risks of the financial industry one by one, including market, credit, operation and liquidity, and provides a comprehensive introduction to the mainstream management methods of various risks.
Course Benefits:
On the basis of cases, students will have a comprehensive understanding of the four major risks related to the financial industry at home and abroad and the professional risk prevention and control system, and establish an overall context system and complete framework for risk management.
Course Highlights:
The teaching is easy to understand, based on a large number of cases, and changes passive learning to shared learning.
Focusing on practical exercises, stimulating interest in learning, and improving problem-solving ability through a large number of drills, which can be effectively used in practical operations.
The classroom atmosphere is active, the content is logical, from shallow to deep to systematic, which is convenient for the integration of the whole.
Course Duration:2 days, 6 hours a day.
Course Target:Financial practitioners, theoretical researchers, and risk management professionals in the corporate world.
Course Method:Class discussion + case sharing + summary and reflection + brain map refinement.
Course outline
Part 1: General Approaches to Risk Management (Overview).
1. Internal control
1.The concept of internal control.
2.Specific practices of internal control.
Case Study:Bank of China Bank of America's internal control practices.
2. Estimation of risk loss
1.Potential loss estimates.
2.Stress test.
3.Argentina debt crisis.
3. Provision of risk reserves
4. Capital provision and allocation
5. Risk-adjusted performance allocation
1.Economic capital and risk-adjusted performance measures.
2.Risk-adjusted return on capital.
Part 2: Risk Management Approaches Based on the Four Risks
Lecture 1: Market Risk Management
1. The core of market risk management: value at risk var
1.An introduction to traditional market quantification tools.
2.The concept of VAR was proposed.
3.The significance of the value-at-risk var.
2. Market risk management of financial institutions
1.The basic process of market risk management of financial institutions dominated by banks.
2.The basic method of market risk measurement of financial institutions dominated by banks.
3.The basic method of market risk monitoring of financial institutions dominated by banks.
Case Study: Market Risk Management System of Industrial and Commercial Bank of China
3. Basic methods for market risk control of financial institutions dominated by banks
Lecture 2: Credit Risk Management
1. The core of credit risk management: credit rating
1.Introduction to credit rating agencies.
2.Introduction to the Standard & Poor's and Moody's credit rating systems.
3.Credit Transfer Matrix.
II. Credit Risk Management of Financial Institutions
1.An overview of the credit policies of financial institutions, mainly banks.
2.General steps for credit risk management of financial institutions, mainly banks.
Case Study: Citibank's Global Credit Risk Management
3. Credit risk measurement
1.Classical credit classification model.
2.Modern credit risk classification models.
4. Credit risk mitigation
1.Use collateral to mitigate credit risk.
2.Use netting agreements to mitigate credit risk.
5. Credit risk transfer
1.Definition of credit risk transfer.
2.The main way of credit risk transfer.
3.A tool for credit risk transfer.
4.Analysis of credit risk transfer regulation.
Lecture 3: Operational Risk Management
1. Basic elements of an operational risk management framework
1.Personnel.
2.System.
3.Internal Controls.
3. Strategies and policies for operational risk management
1.Operational risk management strategy.
2.Operational risk management policy.
Interpretation:Operational Guidelines for Banking Practitioners
Fourth, the design of the organizational structure of operational risks
1.Operational Risk Management Organizational Design Principles.
2.Operational risk management organizational model.
3.Operational risk management network structure.
5. Operational risk management process
1.Operational risk policy development.
2.Operational risk identification.
3.Operational risk measurement.
4.Operational risk assessment and analysis.
5.Operational risk capital management.
6.Operational risk management reports.
6. Basic management tools for operational risks
7. Basel Accord Amendments to Operational Risks
1.Operational risk management and Pillar 1 revision.
2.Operational risk management and Pillar 2 revision.
3.Operational risk management and Pillar 3 revision.
4.Changing roles in operational risk management in the post-crisis era.
Lecture 4: Liquidity Risk
1. Asset liquidity risk management
1.Assessment of asset liquidity risk.
Case Study: PDCA Liquidity Risk Assessment Model
2.Liquidity adjustment var
3.Illiquidity and risk measurement.
2. Financing liquidity risk management
1.An early warning indicator of financing liquidity risk.
2.Mitigation of financing liquidity risk.
3. Liquidity risk management of financial institutions, mainly banks
1.A traditional approach to liquidity risk management in bank-based financial institutions.
2.Steps in modern liquidity risk management for bank-based financial institutions.
Case Study: "Rigid Payment" of Trust Enterprises
Fourth, the new requirements for liquidity risk management in the Basel Accord
1.Basel Accord Background to new regulatory requirements for liquidity risk.
2.Basel Accord Specific requirements for the regulation of liquidity risk.
3.Basel Accord The implications of regulating liquidity risk.