Effective Risk Management Oversight for Board Members & Executives

3 days 12-14 Dec 2016, New York United States $5,190.00 Download brochure Add to basket
3 days 20-22 Apr 2017, London UK £3,645.00 + VAT* Download brochure Add to basket
3 days 11-13 Oct 2017, London UK £3,645.00 + VAT* Download brochure Add to basket
3 days 27-29 Nov 2017, New York United States $5,190.00 Download brochure Add to basket

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Overview

Since the global financial crisis, corporate board members and senior staff have been under pressure to enhance their understandings of risk management.

In the UK this has been formalized into law through the Corporate Governance Code, and similar measures are taking root across the globe. In particular, non-executive directors are now required by most large institutions to demonstrate some understanding of risk management in order to undertake oversight responsibilities.

This course is designed to help you understand how to respond to this challenge.  

On completion of this innovative 3-day course, you will be able to:

  • Gain a better understanding of the role of directors and senior executives in overseeing, understanding and leveraging risk management
  • Understand the envisaged role of directors in light of the Walker Report, OECD reports, The Turner Review and other commentaries
  • Learn how to establish executive risk management committees
  • Learn how to establish a risk profile and risk appetite
  • Understand the purpose, process and function of the core risk areas: credit, market and operational
  • Understand these risk exposures in relation to the company’s overall core business operations
  • Learn how information from these functions should be reported and technological and IT considerations
  • Gain a better understanding of the primary questions to ask of risk management heads during the oversight process
  • Learn how and when to form a risk committee
  • Learn how the risk committee should be structured and function in relation to other committees, particularly the audit committee
  • Understand risk management within the context of major initiatives (e.g., Basel III and its Internal Capital Adequacy Assessment Process (ICAAP) 

 

Credited by GARP - Global Association of Risk Professionals (GARP)

Who should attend

Who should attend?

  • Chief Executive Officers
  • Board members
  • Chief Operational Officers
  • Chief Risk Officers
  • Chief Financial Officers
  • Heads of Risk Management
  • Heads of IT and other primary functions
  • Board members
  • Fund Managers
  • Investor Representatives

Instructors

We work with a series of expert instructors, please select the course location of interest to review the credentials of who will be delivering the programme.

London
Maurice Ewing

The course instructor holds a PhD, is an experienced executive, Chief Risk Officer (CRO), board member and consultant. He is the founder and CEO of Conquer Risk, a consulting firm that conducts investment due diligence of corporates and banks, specialising in emerging and frontier markets. Until recently, the instructor held the group CRO role for one of Africa's largest banks for which he developed the entire enterprise risk management (ERM) and risk oversight functions, sitting on the board and managing over 400 people within 10 departments, spanning 5 countries. He is a sought after speaker on risk oversight, strategy and corporate governance but has also trained numerous management teams in predictive analytics, market intelligence acquisition and internal model development for Basel II & Basel III purposes. He previously taught Executive-MBAs on the full-time finance faculty of the Kellogg-HKUST business program and, before that, worked as a regulator for both the New York Federal Reserve and the Board of Governors. A former dissertation advisee of Ben Bernanke, the US Federal Reserve Chairman, the instructor holds a PhD and MA in economics from Princeton University and a BA in Economics and Mathematics from Northwestern University. He was recently selected out of over 50,000 candidates to the prestigious board of the Professional Risk Manager's International Association as a Subject Matter Expert on ERM. He is also a certified Financial Risk Manager (FRM) with the Global Association of Risk Professionals.

New York
Maurice Ewing

The course instructor holds a PhD, is an experienced executive, Chief Risk Officer (CRO), board member and consultant. He is the founder and CEO of Conquer Risk, a consulting firm that conducts investment due diligence of corporates and banks, specialising in emerging and frontier markets. Until recently, the instructor held the group CRO role for one of Africa's largest banks for which he developed the entire enterprise risk management (ERM) and risk oversight functions, sitting on the board and managing over 400 people within 10 departments, spanning 5 countries. He is a sought after speaker on risk oversight, strategy and corporate governance but has also trained numerous management teams in predictive analytics, market intelligence acquisition and internal model development for Basel II & Basel III purposes. He previously taught Executive-MBAs on the full-time finance faculty of the Kellogg-HKUST business program and, before that, worked as a regulator for both the New York Federal Reserve and the Board of Governors. A former dissertation advisee of Ben Bernanke, the US Federal Reserve Chairman, the instructor holds a PhD and MA in economics from Princeton University and a BA in Economics and Mathematics from Northwestern University. He was recently selected out of over 50,000 candidates to the prestigious board of the Professional Risk Manager's International Association as a Subject Matter Expert on ERM. He is also a certified Financial Risk Manager (FRM) with the Global Association of Risk Professionals.

Venue

New York

New York Hotel

This program takes place on a non-residential basis at a New York hotel. Non-residential course fees include training facilities, documentation, lunches and refreshments for the duration of the programme. Delegates are responsible for arranging their own accommodation, however, a list of convenient hotels (many at specially negotiated rates) is available upon registration.

As with all programmes on-site administrators are with you throughout the programme to ensure smooth administration and group interaction.

London

Central London Hotel Venue

All courses are held at four or five star venues in Central London, Zone 1. We strive to provide you with a training environment of the highest quality, to ensure that the whole learning experience exceeds your expectations.

Your training venue will be confirmed by one of our course administrators approximately 3-4 weeks before the course start date.

Related Courses

Inhouse


 

Do you have five or more people interested in attending this course? Do you want to tailor it to meet your company's exact requirements? If you'd like to do either of these, we can bring this course to your company's office. You could even save up to 50% on the cost of sending delegates to a public course.

To find out more about running this course in-house:





Our Tailored Learning Offering

If you want to run this course at a location convenient to you or if you want a completely customised learning solution, we can help.

We produce learning solutions that are completely unique to your business. We'll guide you through the whole process, from the initial consultancy to evaluating the success of the full learning experience. Our learning specialists ensure you get the maximum return on your training investment.



We can offer any of our public courses delivered at your office or we can devise completely tailored solutions:


Read more about our offering or complete a call back request to speak to a learning specialist.

 

Agenda

Agendas are localised, please select your preferred location.

Day 1

Overview

  • What risk management is meant to do for the institution
    -Goals and objectives
    -Tools and devices
  • How risk management is meant to work
    -How risk events are meant to be reported
    -How losses and exposures are meant to be addressed
  • The role of executives and board members
    -Risk management oversight
    -Forecasts of future problems and opportunities
    -How risk management can be used in strategy
  • Benchmarking your institution’s risk management effectiveness and quality to that of competitors
  • Important terminology (in relation to risk management methods, derivatives, market instruments and their function)
  • Important initiatives (Basel III, CAD II, Solvency II)
    -How to undertake compliance with initiatives
  • ICAAP for executives
    -Benchmark examples
    -UK FSA guidelines
    -Examples from various regulators
    -Exploration of important contents
  • Executive Summary
  • Capital Adequacy determination
  • Capital Planning
  • Use of the ICAAP
    -How the ICAAP should be implemented and used at the board level



 

Day 2

 Understanding Credit Risk

  • Formation of an executive credit committee
  • Formation of a credit policy and credit risk assessment manual
  • Defining credit risk
  • Defining credit losses
  • Structuring the risk management apparatus
  • Structuring reporting: How credit losses should be conveyed to senior management and the board or directors
  • Benchmarking practices: How credit losses should be managed in the context of best-practice
  • Gathering an understanding of the institution’s risk profile
  • Tools for assessing credit exposure
    -What is meant by “scoring”
    -Scoring methods—discussed and demystified
    -What is meant by rating
    -How ratings are related to the institution’s
  • Tools for credit monitoring
    -Establishing the monitoring function
    -Evaluating the monitoring function
  • Costly initiatives that must be considered
    -Data quality and database development
    -Information technology considerations
    -Personnel and human resource considerations
    -Accounting and capital adequacy considerations
    -Governance considerations
  • Credit model testing and stress testing: What executives and board members need to know in interpreting and using the results
  • Deciding how much in terms of resources to dedicate to credit risk management
  • Glossary of important credit terms




 

Day 3

 
Understanding Operational Risk

  • Unfinished discussion of Understanding Credit Risk from Day 2
  • Defining Operational Risk
  • Understanding operational risk importance
  • How items excluded from the operational risk definition affect executive decision-making
  • Formation of an executive operational risk committee
  • Creation of an operational risk policy and management manual
  • Additional terminology
  • Regulatory initiatives (Basel II, Standardized and Advanced Measurement Approaches)
  • Establishing an executive risk tolerance level for operational risk exposure
  • Gathering the tools for operational risk management
    -Data considerations
    -Personnel considerations
    -Information technology considerations
    -Governance considerations
  • Deciding what operational risk approaches to take
  • Deciding how much in terms of resources to dedicate to operational risk management
  • Defining Market Risk
  • Formation of an executive market risk committee
  • Creation of a market risk policy and management manual
  • Additional terminology
  • Market conditions and the market risk strategy
  • Gathering tools for market risk management
    -Data considerations
    -Personnel considerations
    -Information technology considerations
    -Governance considerations
  • Deciding what market risk approaches are appropriate for the institution

 

Integrating Risk Management

  • Unfinished discussion from Understanding Operational Risk and Market Risk
  • Structuring the institution’s risk management to be integrated
  • -Data considerations
  • -Personnel considerations
  • -Governance considerations
  • -Information technology considerations
  • Desirable platforms for summarizing overall credit, operational and market risk exposure for executives and board members
  • -Risk-based pricing and assessment methods
  • -Heat mapping
  • -Graphing and diagramming
  • Regulatory and investor reporting
  • Summary and conclusions

 

Day 1

Registration commences at 8:30
Programme runs from 9:00 - 5:00 daily

Overview
What risk management is meant to do for the institution

  • Goals and objectives
  • Tools and device

How risk management is meant to work
 

  • How risk events are meant to be reported
  •  How losses and exposures are meant to be addressed

The role of executives and board members in overseeing risk management
 

  • Risk management oversight
  •  Forecasts of future problems and opportunities
  •  How risk management can be used in strategy

 Benchmarking your institution’s risk management effectiveness and quality to that of competitors

 Important terminology (in relation to risk management methods, derivatives, market instruments and their function)

 Important initiatives for financial institutions (Basel III, CAD II, Solvency II)

 How to undertake compliance with initiatives
 

  • ICAAP for executives
  •  Benchmark examples
  •  UK FSA guidelines
  •  Examples from various regulators
  •  Exploration of important contents
  •  Executive Summary
  •  Capital Adequacy determination
  •  Capital Planning
  •  Use of the ICAAP
  •  How the ICAAP should be implemented & used at the board level

Day 2

Board Oversight of Financial Risk

 Overseeing FX Risk
 

  • Identifying and understanding FX exposure
  •  Defining FX losses
  •  Operational hedging vs. Financial Hedging
  •  Formation of an executive sub-committee
  •  Structuring of the FX risk management apparatus
  •  Structuring reporting: How losses and exposure can be communicated to the board and senior managers
  •  Establishing an FX Risk Management policy
  •  Benchmarking practices
  •  Gathering an understanding of the institution’s FX risk profile
  •  Tools for assessing FX exposure
  •  Tools for monitoring and managing FX exposure
  •  FX Model testing and Backtesting: What executives and the board needs to know in interpreting the results
  •  Glossary of important FX terms

 Overseeing Credit Risks

  •  Identifying and understanding credit risk exposure
  •  Defining Credit losses
  •  Corporate Credit versus Financial institution credit
  •  Formation of an executive sub-committee
  •  Structuring of the credit risk management apparatus
  •  Structuring reporting: How losses and exposure can be communicated to the board and senior managers
  •  Establishing an Credit Risk Management policy
  •  Benchmarking practices
  •  Gathering an understanding of the institution’s Credit risk profile
  •  Tools for assessing Credit exposure
  •  Client and customer ratings
  •  Trade-credit ratings
  •  Tools for credit monitoring
  •  Establishing the monitoring function
  •  Evaluating the monitoring function
  •  Costly initiatives that must be considered
  •  Data quality and database development
  •  Information technology considerations
  •  Personnel and human resource considerations
  •  Credit model testing and stress testing: What executives and board members need to know in interpreting and using the results
  •  Deciding how much in terms of resources to dedicate to credit risk management
  •  Glossary of important credit terms

Overseeing Funding and Liquidity Risks
 

  • Identifying and understanding liquidity risk exposure
  •  Defining liquidity-related losses
  •  Formation of an executive sub-committee and collaboration with ALCO
  •  Structuring of the liquidity risk management apparatus
  •  Structuring reporting: How losses and exposure can be communicated to the board and senior managers
  •  Establishing an Liquidity Risk Management policy
  •  Benchmarking practices
  •  Gathering an understanding of the institution’s Liquidity risk profile
  •  Tools for assessing Liquidity risk exposure
  •  Tools for liquidity risk monitoring
  •  Glossary of important liquidity risk related terms

Day 3

Board Oversight of Hazard and Operational Risk

 Overseeing Hazard/Operational Risk
 

  • Understanding operational risk importance
  •  Operational risk exposures
  •  Hazards and vulnerabilities
  •  How items excluded from the operational risk definition affect executive decision-making
  •  Formation of an executive operational risk committee
  •  Creation of an operational risk policy and management manual
  •  Additional terminology
  •  Regulatory initiatives for financial institutions (Basel II, Standardised and Advanced Measurement Approaches)
  •  Establishing an executive risk tolerance level for operational risk exposure
  •  Gathering the tools for operational risk management
  •  Data considerations
  •  Personnel considerations
  •  Information technology considerations
  •  Governance considerations
  •  Deciding what operational risk approaches to take
  •  Deciding how much in terms of resources to dedicate to operational risk management

Board Oversight of Strategic Risk
 Overseeing Strategic Risk
 

  • Identifying and understanding Strategic/Competitive risk exposure
  •  Defining Strategic losses
  •  Reconciliation with operational risks and other risks
  •  Structuring of the strategic risk management apparatus
  •  Structuring reporting: How losses and exposure can be communicated to the board and senior managers
  •  Establishing an Strategic Risk Management policy (if necessary)
  •  Benchmarking practices
  •  Gathering an understanding of the institution’s Strategic risk profile
  •  Tools for assessing Strategic risk exposure
  •  Tools for monitoring and managing Strategic risk exposure

Course summary and close

Why us


We have a combined experience of over 60 years providing learning solutions to the world’s major organisations and are privileged to have contributed to their success. We view our clients as partners and focus on understanding the needs of each organisation we work with to tailor learning solutions to specific requirements.

We are proud of our record of customer satisfaction. Here is why you should choose us to help you achieve your goals and accelerate your career:

  • Quality – our clients consistently rate our performance ‘excellent’ or ‘outstanding’. Our average overall score awarded to us by our clients is nine out of ten.
  • Track record – we have delivered training solutions for 95% of worlds’ top 100 banks and have trained over 250,000 professionals.
  • Knowledge – our 150 strong team of industry specialist trainers are world leading financial leaders and commentators, ensuring our knowledge base is second to none.
  • Reliability – if we promise it, we deliver it. We have delivered over 20,000 events both in person and online, using simultaneous translation to delegates from over 180 countries.
  • Recognition – we are accredited by the British Accreditation Council and the CPD Certification Service. In an independent review by Feefo we scored 96% on service and 95% on product