Professional Training

Advanced Banking Risk Management Course

Rcademy, In London (+6 locations)
3 days
1,455 GBP excl. VAT
Next course start
01 Apr - 05 Apr, 2024 (+19 start dates)
Course delivery
Virtual Classroom, Classroom
3 days
1,455 GBP excl. VAT
Next course start
01 Apr - 05 Apr, 2024 (+19 start dates)
Course delivery
Virtual Classroom, Classroom
Leave your details so the provider can get in touch

Course description

The term “advanced banking risk management” describes using cutting-edge tools and methods to analyze, quantify, and control potential threats in the financial sector. These methods and tools aim to quicken the process of risk assessment, increase its accuracy, and lessen the negative effects that risk events might have on the bank’s finances and operations.

What are some examples of advanced techniques and technologies that banks use to manage risks?

Advanced banking risk management technology includes:

  • Big data and analytics: Banks utilize big data to collect and analyze data from client transactions, social media, and market data. This helps them spot fraud and credit risk tendencies.
  • Artificial Intelligence and Machine Learning: Banks streamline risk assessment and decision-making using AI/ML. Risk assessment may be faster, more accurate, and less error-prone.
  • Stress testing: Banks model several scenarios to see how a recession or natural catastrophe will affect their operations and finances.
  • Operational Risk Management: Banks detect, analyze, and manage operational risks from internal or external occurrences.
  • Risk and Capital Management: Banks maximize risk and capital management by examining their risk appetite, risk tolerance, critical risks, and capital needs.

What does advanced banking risk management do?

Advanced banking risk management helps banks anticipate and manage risks, minimizing their effect on operations and financial performance. This may safeguard banks’ assets, reputations, and customer service.

The Advanced Banking Risk Management Training Course by Rcademy is designed for senior compliance and risk professionals working in banking and financial institutions or providing advisory risk management services to financial institutions. The program covers a broad technical curriculum comprising the primary conceptual basis of risk management. It allows participants to reason strategically to control the critical risks in line with the bank’s risk appetite and competitive advantage. The course will help answer the most asked questions, including the types of risk in banking. And why is risk management essential for banks? Therefore, the Rcademy course equips you with skills, knowledge, and attitudes that will enable them to apply banking risk management techniques in a company.

Upcoming start dates

Choose between 19 start dates

04 Dec - 08 Dec, 2023

  • Classroom
  • Dubai

05 Feb - 07 Feb, 2024

  • Classroom
  • Dubai

17 Jun - 28 Jun, 2024

  • Classroom
  • Dubai

02 Dec - 06 Dec, 2024

  • Classroom
  • Dubai

06 May - 10 May, 2024

  • Classroom
  • London

29 Jan - 02 Feb, 2024

  • Classroom
  • Nairobi

19 Aug - 23 Aug, 2024

  • Classroom
  • New York

02 Sep - 04 Sep, 2024

  • Classroom
  • Singapore

11 Nov - 13 Nov, 2024

  • Classroom
  • Toronto

15 Nov - 17 Nov, 2023

  • Virtual Classroom
  • Online

25 Dec - 29 Dec, 2023

  • Virtual Classroom
  • Online

12 Feb - 16 Feb, 2024

  • Virtual Classroom
  • Online

21 Feb - 23 Feb, 2024

  • Virtual Classroom
  • Online

01 Apr - 05 Apr, 2024

  • Virtual Classroom
  • Online

24 Apr - 26 Apr, 2024

  • Virtual Classroom
  • Online

26 Aug - 30 Aug, 2024

  • Virtual Classroom
  • Online

16 Sep - 27 Sep, 2024

  • Virtual Classroom
  • Online

18 Nov - 20 Nov, 2024

  • Virtual Classroom
  • Online

23 Dec - 27 Dec, 2024

  • Virtual Classroom
  • Online

Suitability - Who should attend?

The objectives of TheAdvanced Banking Risk Management Training Course by Rcademy will enable the participants to:

  • Determine the estimate of the balance sheet in failure and the complexities of the capital design
  • Learn how to monitor the liquidity profile of a bank and analyze the extent of risk it causes
  • Understand the market risk profile of trading books banks and examine the materiality
  • Understand how to use tools for structuring risk analysis, risk scenario arrangement, and critical thinking.
  • Perform a comprehensive credit quality assessment of banks
  • Perform a detailed sufficiency assessment of the bank
  • Determine the operational risk sources and how they arise within the context of the bank’s primary operations
  • Understand the governance systems, structures, culture, and procedural factors required for an institution to control operational risks successfully
  • Understand the primary methods for the qualification and measurement of operational dangers and their associated drawbacks and merits
  • Understand the importance of methods available to banks under Bessel 3 for the measure of regulatory capital for supervisory needs and operations risk for every level

Training Course Content

Module 1: Introduction

  • Why risk management?
  • Risk assessment versus risk management
  • Taxonomy of risks
  • Review of quantitative equipment
    – Basic statistics
    – Introduction to stochastic process
    – Linear algebra
    – Probability concepts
    – Factors of integral calculus and differential calculus

Module 2: Risk Management as a Strategic Competitive Strength

  • Understand systematic risk and the unique issues of becoming a financial intermediary in the current interconnected world.
  • How managerial decision-making, corporate finance, and risk management are related
  • Macroeconomic controllers of risks
  • Unique features of the controlled financial intermediaries and how regulatory surrounding has changed

Module 3: The Enterprise Perspective Such as Governance, Culture, and Stakeholder Relationship

  • Illustrating risk appetites
  • Critical decision-making and peripheral vision
  • Enterprise risk control
  • The tension between regulatory capital and economic capital
  • Communicating the risk profiles to both external and internal stakeholders

Module 4: An Analytic Design for Managing, Measuring, and Monitoring Risk

  • Modeling issues and practices
  • Economic capital
  • Unique risk behavior gets shown by real estate and derivatives assets
  • Challenges and techniques used in measuring the exposure to risks
  • Scenario-based strategic planning

Module 5: Asset Quality Analysis

  • IFRS 9 stage analysis
  • NPL analysis
  • Portfolio risks and growth
  • Analyzing of concentration stages cost of margins and risks
  • Assessing levels of ECLs and collateral and their impacts on coverage ratios
  • Credit risk RWAs
  • Case study

Module 6: Market Risk Analysis

  • Understanding the border between trading books and banking
  • Trading book size and revenue
  • Banking book risks
    – The economic value of equity
    – NII variability
  • Trading book risks
    – Counterparty credit risk
    – Market risk RAWs and the needed capital
    – Value of risk
  • Assessing the materiality of the dangers
  • Structural FX risks
  • Case study

Module 7: Effects of Operational Risks

  • Cyber risks
  • Operational risk surrounding
  • Reputational impacts legal risks surrounding legal uncertainties and regulatory fines
  • Reputational effects

Module 8: Profitability and Capital Analysis

  • RWAs and capital structure
  • CET1 analysis and evolution
  • Changes likely to occur to capital designs
  • Analysis of the appropriateness of capital design
  • Determining sources of income
  • Analysis of potential issues of capital to strategic goals
  • Profitability metrics
  • Determining income volatility by sections
  • Creating price-income ratios by time
  • Case study

Module 9: Strategy, Governance, and Management

  • How strategy illustrates risk appetites and profiles
  • Assessing and identifying strategy and their objectives
  • Governance failure indicators

Module 10: Liquidity Analysis

  • Funding structure
    – Funding structure metrics
    – NSFR
    – Challenges surrounding the funding structure
  • Liquidity assets
    – Liquidity asset metrics
  • Case study

Module 11: Ratings Revisited

  • Developing the BCA
  • Affiliate help
  • Notching and ratings against BCA

Module 12: Credit Risk Management

  • Exposure mitigation: collateral, netting, guarantees, and limits
  • Derivates for credit
  • Credit default swap (CDS) binary, standard, mechanics, cost of the contracts, and basket CDS
  • Obligations of collateralized debt
  • Total return swaps

Module 13: Analysis of Equity, Fixed Income, Derivative, And Market Risk

  • Equity Risk
    – Factors of a portfolio approach
    – Capital asset cost model
    – Idiosyncratic risk versus systematic risk
    – Performance analysis and equity portfolio risk
  • Fixed Income Risk
    – Rate risk-Duration, DVO1, and convexity
    – Foreign exchange risk
    – Delta-gamma(convexity) and delta approximations
    – Foreign exchange risk
  • Derivative Risk
    – Option evaluation
    – Futures, forwards, and options
    – Sensitivity analysis: Greeks
  • Model-Based Approaches to Market Risk
    – Structuring the joint behavior of many of the risk factors
    – Single risk factor approaches
    – Measures of portfolio risk
    – Methods to lower dimensionality/complexities
    – Extreme value methods
  • Analysis Of Market Risk with Their Ancient Information
    – Collection of information to structure the character of risk factors
    – Determination of the loss distribution
    – Calculating risk measure estimates
    – Dollar P/L versus returns
    – Methods to improve risk estimate accuracy
    – Confidence durations for an estimate of risk measures
    – Updating of volatility: GARCH AND EWMA
    – Bootstrapping the sample information

Module 14: Analysis of Liquidity, Credit, And Operational Risks and Their Management

  • Liquidity Risk Management
    – Funding risk: asset-liability management
    – Trending risk: liquidity adjustable VaR
    – Responsibility for repurchase agreements of crisis in finance
    – Market liquidity and high-frequency algorithm trading
  • Credit Risk
    – Method to modeling credit risk
    – Portfolio credit risk and default correlation
    – Derivatives of credit
  • Credit Risk Management
    – Monte Carlo methods
    – Credit Var techniques
    – Approximate VaR analysis on an envelope back
    – Parameter approaches
  • Operational Risk Management
    – Operational risk regulation
    – Taxonomy of operational risk
    – VaR approaches to operational risk
    – Operational risk modeling

Course delivery details

This training course will teach about the topics covered in the course outline using proven adult studying materials and facilitation methods. Some seminar techniques that will be used include role play, case study, and group discussions evaluating and analyzing the primary challenges facing the current banking risk management.

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Floor 9, Zoom Building, Marassi Drive, Business Bay, Dubai, UAE
128 City Road, London, United Kingodom


Rcademy is a global training and consultation organisation set out to bridge the gap between you now and what you can be in the near future. We are facilitators of knowledge impartation. Our team of established and experienced training enthusiasts...

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