Certified Stress Testing Expert Basel 3 CSTE B3

Overview:

Introduction:

This program is designed to prepare participants for the certification exam only.

The Certified Stress Testing Expert Basel III (CSTE-B3) certification validates expertise in conducting stress tests under the Basel III regulatory framework, essential for ensuring the resilience of financial institutions. This training program equips participants with the knowledge and skills to design, implement, and evaluate stress testing models that align with Basel III requirements.

Program Objectives:

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

• Explore the principles and requirements of stress testing under Basel III.

• Develop and apply effective stress testing models for various risks.

• Conduct scenario analysis and interpret stress test results.

• Ensure regulatory compliance with Basel III stress testing standards.

• Prepare for the CSTE-B3 certification exam.

Target Audience:

• Risk Management Professionals.

• Banking and Financial Analysts.

• Compliance Officers.

• Regulatory Reporting Specialists.

• Professionals preparing for the CSTE-B3 certification.

Program Outline:

Unit 1:

Introduction to Stress Testing and Basel III:

• Overview of Basel III regulatory framework.

• Purpose and importance of stress testing in financial institutions.

• Key principles and components of Basel III stress testing.

• Types of stress tests: sensitivity analysis and scenario analysis.

• Regulatory expectations and reporting requirements.

Unit 2:

Developing Stress Testing Models:

• Designing effective stress testing models for credit, market, and liquidity risks.

• Identifying key risk drivers and data requirements.

• Building quantitative models to simulate extreme scenarios.

• Integrating stress testing models into risk management frameworks.

• Best practices for model validation and calibration.

Unit 3:

Scenario Design and Analysis:

• Developing plausible and severe stress scenarios.

• Macro-economic and market factors influencing stress tests.

• Techniques for conducting sensitivity analysis.

• Interpreting and assessing the impact of stress scenarios.

• Documenting and presenting scenario analysis results.

Unit 4:

Regulatory Compliance and Reporting:

• Basel III guidelines for stress testing and capital adequacy.

• Meeting supervisory expectations for stress testing.

• Preparing comprehensive stress test reports for regulators.

• Addressing deficiencies and implementing corrective actions.

Unit 5:

CSTE-B3 Certification Exam Preparation:

• Detailed review of the CSTE-B3 exam structure and content.

• Reviewing key topics and concepts covered in the exam.

• Sample exam questions and their potential answers.

• Resources and materials for further study.

Note: This program is designed to prepare participants for the certification exam only.