All organizations' have risk, and risks need to be managed. There is no one way of doing things, or the right way, or the only way. Each organisation is different, therefore the approach to managing risks is different. Understanding such differences is important in the effective management of risks - in support of organisational goals and objectives.

Part of the effectiveness involve making decisions or decision making. That is, risk managers must be prepared to make decisions. There are approaches and methods that could be employed to facilitate the process. This training covers the following:

• Overview of the core banking risks - Credit, Operational, Market, and Liquidity (the COML risks). 

• Overview of the regulatory framework - the Basel Framework.

• Explaning each of the COML risks.

• Using Risk Identification, Risk Assessment, Risk Measurement, and Risk Mitigation steps to manage risks.

• Decision making tools and methods to use.

To strengthen the understanding of how scenario analysis supports decision making for credit risks of bank's loans. Scenario analysis is used for a variety of risk and non-risk purposes. Depending on the goals and objectives of the analysis, different methods and approaches should be used.

• Understanding of the approaches and concepts to support the development and implementation of scenario analysis capabilities for retail loan portfolios.

• Understanding the value adding benefits created through the application of effective scenario analyses in supporting business and organisational strategy.

• Understanding of how to create an integrated risk and finance view to support the management of retail loan portfolios. 

Introduction to the requirements of the Internal Capital Adequacy Assessment Process (ICAAP). Attendees will develop an understanding of the key requirements on the Internal Capital Adequacy Assessment Process (ICAAP), part of the Pillar 2 requirements of the Basel capital framework. The training will focus on the implementation experiences and approaches of banks from the ASEAN region. The training will cover the following:

• Overview of the Basel capital framework – Pillar 1 and Pillar 2.

• ICAAP principles and requirements.

• Common Pillar 2 risk types.

• Calculating internal capital requirements.

• Implementing ICAAP – governance, process, methods, and data.

Introduction to the requirements of IFRS 9 and provide insights into the implementation experiences in other banks. Attendees will develop an understanding of post implementation requirements and challenges, including impact on IFRS 9 from current events. Topics covered are:

• Classification and Measurement

• Impairment – Significant Increase in Credit Risk, Probability Weighted Outcome, and Expected Credit Loss

• Implementation and Post-Implementation Considerations

Introduction to Climate Change and the impact of changes in the environment on risk management. Attendees will be briefed on climate change developments from around the world, and introduction to the impact on financial, risk and operations of banks.

• Climate changes and key climate related events from around the world.

• Key global, region and country initiatives on managing climate change.

• Physical and Transition Risk - Mitigation and Adaptation.

• Scenario analysis for climate change.

• Getting climate change on the agenda of businesses - strategy and resiliency.

Structured as an introductory to mid level course, the training covers Credit and Operational risk Pillar 1 calculations, focusing on the non-model approaches (e.g. Standardised methods). Attendees will develop an understanding of the Basel Framework, along with the challenges in implementing Basel 2 and the final Basel 3 requirements.

• Introduction to the Basel Framework.

• The 3 Pillars of the framework.

• The elements of capital adequacy.

• Credit and Operational risks Pillar 1 approaches.

• Basel 2 and Basel 3 (2023) requirements.

• Pillar 2 and Pillar 3 general requirements.

• Common implementation topics - data, systems, processes.