Introduction:

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

The Certified Stress Testing Expert Basel III (CSTE-B3) certification represents a specialized credential that validates advanced expertise in stress testing within the Basel III regulatory framework. Stress testing is a critical requirement for financial institutions to ensure resilience under adverse conditions and to safeguard capital adequacy and stability. This training program introduces the regulatory foundations of Basel III, advanced stress testing models, and scenario based analysis that support compliance, risk evaluation, and institutional preparedness. It equips professionals with structured methods to integrate stress testing into governance, reporting, and risk management functions in alignment with international regulatory standards.

Program Objectives:

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

Identify the regulatory principles and requirements of stress testing under Basel III.
Explore advanced stress testing models covering credit, market, and liquidity risks.
Gain the required skills to conduct structured scenario analysis and interpret results within institutional contexts.
Evaluate compliance frameworks linking stress testing to supervisory expectations.
Prepare effectively for the CSTE-B3 certification exam.

Target Audience:

Risk Management Professionals.
Banking and Financial Analysts.
Compliance Officers.
Regulatory Reporting Specialists.

Program Outline:

Unit 1:

Introduction to Stress Testing and Basel III:

Regulatory foundations of Basel III and their institutional significance.
Strategic role of stress testing in risk management and capital adequacy.
Core components of Basel III stress testing frameworks.
Structures of sensitivity analysis and scenario analysis.
Supervisory expectations and structured reporting obligations.

Unit 2:

Developing Stress Testing Models:

Advanced frameworks for modeling credit, market, and liquidity risks.
Identification of key risk drivers and quantitative data requirements.
Techniques for constructing models to simulate severe scenarios.
Integration of stress testing models within enterprise risk management.
Standards for validation, back-testing, and calibration of stress testing models.

Unit 3:

Scenario Design and Analysis:

Structures for developing severe yet plausible macro-economic scenarios.
Institutional methods for incorporating market and systemic shocks.
Analytical frameworks for sensitivity and impact assessments.
Key steps for results interpretation within capital planning and risk governance.
Documentation and structured presentation methods of scenario outcomes.

Unit 4:

Regulatory Compliance and Reporting:

Basel III compliance requirements for stress testing and capital planning.
Governance models for aligning stress testing with supervisory reviews.
Structures for preparing regulatory reports and disclosures.
Corrective measures for identified weaknesses and regulatory gaps.
Role of internal audit and oversight in stress testing governance.

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.

Certified Stress Testing Expert Basel 3 CSTE B3