This IABFM-certified course provides participants with in-depth knowledge and up-to-date advice on best practices in risk measurement and management activities in business organizations. In addition to its focus on the most crucial risk terminologies and practicalities such as ERM, risk maps and risk-based decisions, the course covers the main types of risk faced nowadays by most business organizations such as operational risk, credit risk, liquidity risk and market risk. Using interactive tasks and real life case studies, the course also enables participants to apply the knowledge they will learn about risk measurement and management in designing effective ERM frameworks, devising comprehensive risk maps and making successful risk-based decisions which coincide with their company’s risk culture, appetite and tolerance. Moreover, participants will have the opportunity to work in teams to analyze comprehensive cases, solve practical problems and apply the concepts learnt to real world scenarios in a comprehensive risk management context. Overall, this course aims to communicate complex concepts and sophisticated techniques of risk planning, measurement, management, reporting and disclosure in a truly interesting but highly effective way.
Work within International Risk Management regulations, Risk culture; Comprehend Risk appetite and Risk tolerance.
Measure and model Operational Risk.
Understand the coordination between Credit Risk and Liquidity Risk; Develop their models.
Understand and assess Market Risk.
International Academy of Business and Financial Management
The International Academy of Business and Financial Management™ is one of the world’s fastest growing professional association with more than 200,000 members, associates and affiliates in 145 countries. IABFM™ hosts and organizes certification training worldwide and offers exclusive board designations to candidates who meet the highest professional standards and assessment criteria. The IABFM is credited by the American National Standards Institute (ANSI) the International Standards setting authority.
Day 1: Overview of Enterprise Risk Management (ERM)
→ Definitions, Benefits and Components of ERM → Corporate Governance: codes of conduct, best practices and interactions between corporate governance and ERM → International Regulations: Basel Accords I, II & III and Solvency II
→ Risk Mapping: risk definitions, classifications and drivers → Governance, Risk and Compliance (GRC) Systems → Data and Technology Management: data management, early warning systems, interface building, middleware, distributed architectures
→ Stakeholder Management: employees, customers, regulators, rating agencies, shareholder service providers, business partners → Alternative Risk Transfer (ART) Techniques: definitions, benefits and problems of ART → Risk-based Decision Making: risk-based audits, ERM decisions and actions, ERM and value creation, problems with riskbased decision making
Group and Plenary Discussions: what are the future challenges and potentials of ERM? Interactive Tasks: design an effective ERM Framework Comprehensive Case Studies: how to build risk maps, select ART techniques and make risk-based decisions
Day 2: Operational Risk
→ Overview and Definition of Operational Risk: overview and foundations of the operational risk framework → Regulations of Operational Risk: Basel Accords I, II & III → Impact of the Financial Crisis → Risk Culture, Risk Appetite and Risk Tolerance: implementing and monitoring operational risk appetite → Operational Risk Governance: roles of operational risk officers and risk committees, interactions and collaborations between the operational risk and internal audit functions
→ Internal Operational Risk Data: event Categories, business Lines, minimum loss data thresholds → External Operational Risk Data: sources and challenges of external loss data → Risk and Control Self-assessments (RCSA): approaches, scoring methods and best practices → Key Risk Indicators (KRIs): selection, thresholds, standards and challenges
→ Operational Risk Regulatory and Economic Capitals: OpVaR, risk-weighted assets (RWAs), Extreme Value Theory and tail events → Operational Risk Measurement Approaches: Basic Indicator Approach, Standardized Approach and Advanced Measurement Approach → Operational Risk Insurance → Operational Risk Disclosures: Basel II, Pillar 3 requirements → Operational Risk Reporting: loss data reporting, action tracking reporting and dashboards
Group and Plenary Discussions: what are the future challenges of identifying and quantifying operational risk exposures? How to address these challenges? Interactive Tasks: quantify the operational risk exposure Comprehensive Case Studies: how to measure, report and disclose on operational risk exposures
Day 3: Operational Risk and Credit Risk
Session 1: Operational Risk
→ Scenario Analysis: approaches, outputs, reports and challenges → Stress Testing: approaches, outputs, reports and challenges → Governance, Risk, and Compliance (GRC): converged or GRC reporting → Reputational Risk: regulatory oversight of reputational risks, reputational risk management framework → Fraud Risk: internal fraud, external fraud, anti-fraud regulations and best practices
Session 2: Operational Risk
Group and Plenary Discussions: how can risk professionals enhance the effectiveness of related risk management activities such as legal and regulatory risk management, people risk management, technology risk management and strategic risk management? Interactive Tasks: perform a scenario analysis of real life situations Comprehensive Case Studies: how to do a plausible stress testing
Session 3: Credit Risk
→ Short-Term Exposure to Changes in Market Prices: credit instruments, models of shortterm credit exposure, risk reporting for market credit exposures → Modelling Single-Name Credit Risk: estimating the Probability of Default (PD), Loss Given Default (LGD) and Amount Owed at Default (AOD), The OptionTheoretic Approach → Portfolio Credit Risk: estimating default correlations, Monte Carlo simulation, computational alternatives to full simulation, risk reporting for portfolio credit exposures
Session 4: Credit Risk
Group and Plenary Discussions: what are the recent innovations in credit instruments and their risk implications? Interactive Tasks: estimate PD, LGD and AOD in real life situations Comprehensive Case Studies: how to impellent best practices in managing and reporting on portfolio credit risk
Day 4: Credit Risk and Liquidity Risk
Session 1: Credit Risk
→ Definition and Scope of Multiname Credit Derivatives → Modelling of Multiname Credit Derivatives → Risk Management and Reporting for Multiname Credit Derivatives → Collateralized Debt Obligation (CDO) Tranches and Systematic Risk
Session 2: Credit Risk
→ Counterparty Credit Risk → Exchange-Traded Derivatives → Over-the-Counter Derivatives: the LoanEquivalent Approach, Collateralization Approach and Active Management Approach
Session 3: Liquidity Risk
→ Liquidity Risk → Monitoring Liquidity, Liquidity Buffer and Term Structure of funding → The Links between Credit Risk and Liquidity Risk → Cost of Liquidity and Fund Transfer Pricing → Liquidity Risk and the Cost of Funding in Derivative Contracts
Session 4: Credit Risk and Liquidity Risk
Group and Plenary Discussions: how to jointly manage credit risk and liquidity risk to maximize value created? Interactive Tasks: build a comprehensive credit risk management and reporting framework Comprehensive Case Studies: how to effectively use derivatives to manage both credit risk and liquidity risk
Day 5: Market Risk and Final Exam
→ Model Risk: model risk evaluation and control, model verification of deal representation, model verification of approximations, model validation, continuous and periodic reviews → Liquid and Illiquid Instruments: choice of model validation approach, choice of liquid proxy, design of Monte Carlo simulation, implications for marking to market and risk reporting → Spot Risk: foreign exchange spot risk, equity spot risk, physical commodities spot risk
Group and Plenary Discussions: how can risk professionals cost-effectively minimize model risk? Interactive Tasks: apply dynamic and delta hedging and build a volatility surface in real life situations Comprehensive Case Studies: how to timely and fairly report on market risk exposures and management practices
Open Discussion on the Five-day Event Q & A between the Trainer and Participants Final Exam
Who Should Attend?
This highly practical and interactive course has been specifically designed for
This course is suitable for many different types of risk analysts, managers and audit staff. It covers the entire risk management landscape drawing on different aspects of risk and delivers complex topics in an easy to understand manner:
→ Corporate treasury Managers in banks & corporations
→ Risk Managers/Analysts
→ Finance Directors
→ Financial Controllers
→ Finance Managers
→ Operational Risk Staff
→ Market Risk Staff
→ Internal Auditors
→ External Auditors
→ Plus anyone who is responsible for analyzing company financial risk and dealing with the various risk exposures that may affect their organization.
What language will the course be taught in and what level of English do I need to take part in an LEORON training program?
Most of our public courses are delivered in English language. You need to be proficient in English to be able to fully participate in the workshop and network with other delegates. For in-house courses we have the capability to train in Arabic, Dutch, German and Portuguese.
Are LEORON Public courses certified by an official body/organization?
LEORON Institute partners with 20+ international bodies and associations.We also award continuing professional development credits (CPE/PDUs) for:1. NASBA (National Association of State Boards of Accountancy) 2. Project Management Institute PDUs 3. CISI credits 4. GARP credits 5. HRCI recertification credits 6. SHRM recertification credits
What is the deadline for registering to a public course?
The deadline to register for a public course is 14 days before the course starts. Kindly note that occasionally we do accept late registrations as well, but this needs to be confirmed with the project manager of the training program or with our registration desk that can be reached at +1071 4 1075 5711 or firstname.lastname@example.org.
What does the course fee cover?
The course fee covers a premium training experience in a 5-star hotel, learning materials, lunches & refreshments, and for some courses, the certification fee and membership with the accrediting bodies.
Does LEORON give discounts?
Yes, we can provide discounts for group bookings. If you would like to discuss a discount on a corporate level, we will be happy to talk to you.
IAMM Internal Audit Maturity Model
In recognition of their dedication and contribution supporting IKEA Saudi Arabia in arranging training programs during 2017 & 2018, looking forward for more development and exciting effort this year. On behalf of IKEA Saudi Arabia, THANK YOU!
Country Learning & Development Manager at IKEA Saudi Arabia
Certified Professional in Quality and Patient Safety
Dating back to 2014, Mobily’s “LEORON” experience has grown from a single collaboration to a long-term partnership. We consider ‘’LEORON” Institute as a strategic partner, whose contribution has been nothing but premium in equipping our staff with field-based knowledge and information. Past three years have resulted with an expanded collaboration with superior customer service and support. Best Regards,
Turki S. Alsahaan
Dir L&D, Talent Management at Mobily, Etihad Etisalat Company
Certified Professional in Quality and Patient Safety
Since the partnership was signed between BAE Systems Saudi Development & Training and LEORON in 2017, we have been working together to offer the Saudi market a complete portfolio of training solutions benefiting from the wide and extensive experience of both parties. Recognizing the great success of this partnership, we are looking for further collaborations in the future that will position both companies as one of the leading training providers in Saudi Arabia. We thank the LEORON team for their full cooperation and continuing support, and look forward to further success together in the years to come.
VP, Business Winning at BAE Systems Saudi Development & Training
Certified Professional in Quality and Patient Safety
We have been working with LEORON for the past two years and will be working with them again this upcoming year. The programs they delivered were fruitful and exciting and our organization has received positive feedback from the participants. What our organization aims to do is to provide at no cost training for all the private sector employees so that they may benefit from our offered programs in Innovation and Professional development. Leoron has helped us achieve this goal. We look forward to continuing this service and wish them the best of luck. Regards,
Nasser M. Al-Subaie
Sr. Program Officer, Enterprise Learning & Human Development at Kuwait Foundation for the Advancemen