By the end of this training course, trainees will be able to:
- Identify the Basel Accords, with a specific emphasis on the transition from Basel 3 to Basel IV.
- Define key aspects related to regulatory capital, risk-weighted asset (RWA) calculations for credit, operational, and market risks.
- Explore the impact of Basel IV on banks and the strategic implications for the banking sector.
- Risk Mangers, risk officers, Credit managers , credit officers, internal auditors, financial control staff , treasury staff.
- Introduction to Basel Accords.
- Basel 2 to Basel 3: highlights the key changes and enhancements introduced in Basel 3 compared to Basel 2. (the motivations behind changes and the goals) .
- Why Basel IV: the need for Basel IV and the specific areas it addresses.
- Regulatory Capital
- Definition of Eligible Capital: overview of the components considered as eligible capital under the Basel framework.
- Regulatory Adjustments: the adjustments made to the reported capital figures to align them with regulatory requirements.
- Transitional Arrangements.
- Calculation of RWA for Credit Risk
- Standardized Approach: the standardized approach for calculating risk-weighted assets.
- Credit risk mitigation techniques.
- IRB Approach: an overview of the internal ratings-based approach, including asset class definitions, risk weight functions, risk components, treatment of expected losses and provisions, and minimum requirements to use the IRB approach.
- Counterparty Credit Risk: definitions and terminology related to counterparty credit risk , Counterparty credit risk in the trading book.
- Calculation of RWA for Operational Risk
- Standardized Approach: The new standardized approach for calculating risk-weighted assets for operational risk.
- Calculation of RWA for Market Risk
- Market Risk Terminology: the terminology commonly used in market risk assessment.
- Standardized Approach: the general provisions and structure of the standardized approach, the sensitivities-based method, default risk capital requirement, and residual risk add-on.
- Internal Models Approach: overview of internal models for market risk assessment.
- Credit Valuation Adjustment: the calculation and treatment of credit valuation adjustment.
- The Impact of Basel IV on Banks
- Main Effect of Basel IV: the primary effect of Basel IV on banks, highlighting the key changes and implications.
- Strategic Impact on the Banking Sector: the strategic implications of Basel IV on the banking sector, including potential shifts in business models, risk management practices, and capital allocation strategies.