Introduction:

In today’s volatile financial environment, effective risk management is essential for banking institutions. This comprehensive training program equips professionals with the frameworks, tools, and techniques needed to identify, assess, and manage the three major categories of banking risk: credit risk, operational risk, and market risk. Participants will gain in-depth knowledge of regulatory requirements, risk assessment methodologies, and mitigation strategies relevant to the modern banking sector.

Program Objectives:

By the end of this program, participants will be able to:

• Understand key risk types in the banking sector and their interconnections.

• Evaluate and manage credit risk, including borrower analysis and credit scoring.

• Identify and mitigate operational risk across banking functions.

• Analyze and control market risk exposures, including interest rate and currency risks.

• Apply best practices in risk governance and regulatory compliance (e.g., Basel III).

Target Audience:

• Risk Managers and Officers.

• Credit and Lending Professionals.

• Compliance and Internal Audit Staff.

• Investment and Treasury Professionals.

• Banking Regulators and Supervisory Authorities.

Program Outline:

Unit 1:

Foundations of Risk Management in Banking:

• Overview of banking risk categories.

• Risk management frameworks and policies.

• Introduction to regulatory frameworks (Basel II, Basel III).

• Promoting a risk-aware culture within financial institutions.

• Interrelationship between credit, operational, and market risk.

Unit 2:

Credit Risk Management:

• Credit risk assessment methodologies.

• Credit scoring, ratings, and portfolio analysis.

• Lending policies, underwriting standards, and exposure limits.

• Early warning indicators and credit risk monitoring.

• Credit risk mitigation techniques and recovery strategies.

Unit 3:

Operational Risk Management:

• Identifying operational risks and root causes.

• Key Risk Indicators (KRIs) and Risk Control Self-Assessment (RCSA).

• Internal controls and fraud prevention.

• Business continuity and incident response planning.

• Operational risk event analysis and loss data collection.

Unit 4:

Market Risk Management:

• Types of market risk: interest rate, foreign exchange, equity, and commodity.

• Value at Risk (VaR) and stress testing.

• Market risk measurement tools and models.

• Asset-Liability Management (ALM) principles.

• Hedging strategies and risk limits.

Unit 5:

Risk Governance and Regulatory Compliance:

• Risk appetite framework and policy design.

• Role of the Board and Risk Committees.

• Regulatory compliance and reporting requirements.

• Integration of risk management across business units.

• Case studies of risk failures and lessons learned.