Risk Management in Banking

An integrated perspective on risk governance and long-term value creation

The global financial crisis underlined the importance of sound and comprehensive risk governance. Board members and senior executives of banks need to be clear on how risk categories impact capital allocation and value. The Risk Management in Banking programme provides an overview of risk governance and long-term value creation in light of new regulations, Basel 3 and special resolution regimes with bail-in debt. This working knowledge is essential for senior executives in any business exposed to market, credit, operational or strategic risk – or to the growing concerns of liquidity, reputation and franchise risk.

HOW YOU BENEFIT

• Build context. Expand your understanding of the broader context behind analytical models and approaches to risk in banking.
• Understand the new regulatory landscape. Draw lessons from the new regulatory landscape as it relates to capital and liquidity regulations, advanced fund transfer pricing, special resolution regimes with bail-in debt and fears of rising liquidity risk.
• Gain insights from psychology. Draw on recent results from psychology research into behavioural risk assessment.
• Discuss risk governance in banking. Exchange views and share experiences with other senior executives and directors from the banking sector.

CONTENT OVERVIEW

Risk Management in Banking is a five-day programme designed to help senior banking executives and board members develop expertise in risk governance. It is built on more than 30 years of research organised by the Centre for International Financial Services, a long-standing partnership between INSEAD and selected financial institutions.

Through lectures, discussion and work groups, you will develop risk management skills in the following key areas.

RISK GOVERNANCE

• Identification of key risk domains
• Risk aggregation
• Reputational risk
• Integrating risk control into shareholder value maximisation
• Performance evaluation and compensation
• Re-regulations: Basel 3, ring-fencing of commercial banking and new special resolution regimes
• Pitfalls in risk governance

LIQUIDITY AND MARKET RISKS

• Advanced fund transfer pricing incorporating liquidity premium
• Measurement of interest rate risk on the banking book
• Measurement of trading risk
• Basel 3 and stress tests

OPERATIONAL RISK

• Sources of operational risk
• Measurement of operational risk
• Fraud

CREDIT RISK

• Loan pricing, securitisation and shadow banking
• Portfolio credit risk