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Finance Training Course – Course Outline – Basel II – Myths, Challenges and Question Marks

Designed as a senior management retreat on Basel II, this limited seating, one day workshop serves as a 6 hour crash course on Basel II for Chief Executives, Chief Financial Officers, Country Risk Officers, Credit Administration Heads, Treasury Heads, Basel II Coordinators and Board Risk Committee members.

1. COURSE OBJECTIVES

At the end of this workshop the participants will be able to:

  1. What are Basel II implications for capital allocation, profitability measurement and balance sheet growth?
  2. Where do RAROC, Basel II and product selection decisions converge?
  3. Do transfer pricing and gap management mechanisms at your institution need an overhaul?
  4. How can effective capital and risk management create a sustainable competitive advantage?

2. TRAINING COURSE LEVEL

Intermediate and Advance users.

3. TRAINING COURSE PREREQUISITES

Familiarity with Value at Risk, economic capital, local markets, portfolio management concepts and the Basel II framework.

4. COURSE OUTLINE

Session & TitleTopics
Session 1 – Base II: All you ever needed to know in less than 90 minutesIntroductions and course overview.Beyond the basics.Capital Management and Risk Based pricing.

Industry overview – a quick look at capital adequacy and MCR numbers across the banking industry.

Basel II – Credit, Operational and Market Risk capital frame works.

Myths and reality.

Session 2 – Capital Allocation and Balance Sheet GrowthRisk weights and number crunching.The Capital allocation challenge.Optimizing capital allocation for balance sheet growth.

Domestic market constraints and challenges.

Balancing growth and profitability.

Internal assessment versus regulatory reporting.

Session 3 – Transfer Pricing and Value CreationHow hard does your pool rate work? Pool rates and Basel II? A term structure of pool rates. Balance sheet gap management – a tale of two maturities. The Corporate and Treasury death match.Where is the value in Risk Management? The business case for your Country Risk Office. Sustainable competitive advantage – loan pricing and Basel II.