ERM 2.0-Stress Testing, Capital Planning, Scenario Analysis

ERM 2.0-Stress Testing, Capital Planning, Scenario Analysis
New regulatory initiatives and market trends are asking for much faster decision making, and more agile response from banks in the coming years. The discipline of stress testing, capital planning, and scenario analysis will get a more prominent role in the bank’s steering and supervision, and will become more embedded within their organization risk management and decision making process. Financial institutions around the world are establishing dedicated teams to address these challenges and are increasingly looking for an efficient approach and the skilled resources with finance and risk forecasting expertise.
 


Presented By:
Peter Plochan
Principal Risk & Finance Specialist
SAS Institute


Lesson Length:
5 lessons, 90 minutes each
2 parts / 45 minutes each


Course Dates:
April 7 - May 11, 2020
Instructor access through
May 11, 2020



Time:
Self-paced
One lesson per week

 

About This Course
 
Welcome to ERM 2.0

Click image to view a short course overview from Peter Plochan.


How It Works

Each Tuesday, the pre-recorded lectures and lessons launch on our interactive online learning platform. Each week consists of two 45-minute lectures, resources, and knowledge checks. In addition, throughout the course, you will have an opportunity to submit questions to the instructor and interact with your classmates from April 7 - May 11, 2020. You will have access to the course for one year through May 11, 2021.  

Course Description

Banks around the globe have been swamped with increasing regulatory scrutiny and complexity. In particular, a shift from the traditional backward-looking “What Is” supervision with banks steering towards a more forward-looking “What If” approach can be noted. Satisfying regulatory requirements on historical performance is no longer sufficient, banks have to now spend increasing effort to demonstrate to regulators they can satisfy performance requirements in the future, while considering adverse macroeconomic outlooks. Examples are the recent Pillar 2 and stress testing regulatory initiatives of EBA, PRA, and BIS.

In parallel, the environment of sub-zero interest rates and the emergence of the digital and fintech era have put banks into a difficult situation. They now have to balance the need for more returns, lower costs with the drive to become more agile, and the flexibly to respond to these recent regulatory and market trends.  

Both these new regulatory initiatives and market trends are asking for much faster decision making, and more agile response from banks in the coming years. The discipline of stress testing, capital planning, and scenario analysis will get a more prominent role in the bank’s steering and supervision, and will become more embedded within their organization risk management and decision making process. New emerging topics such as application of AI models, model risk management, and management of environmental and climate change risks will require a new set of expertise and tools to be dealt with effectively. As a result, financial institutions around the world are establishing dedicated teams to address these challenges and are increasingly looking for an efficient approach and the skilled resources with finance and risk forecasting expertise.

 

Course Objectives
  • Increase knowledge of the forward-looking activities such as stress testing, ALM, capital planning, ICAAP, and scenario analysis 
  • Understand, analyze, and process the steps, inputs and outputs of these processes
  • Leverage the latest regulatory and business developments
  • Understand the relevant financial and risk fundamentals
  • Maneuver the inter-dependencies and form a holistic view around the ERM processes, with an enterprise-wide mindset (e.g., full balance sheet, P&L, all risks)
  • Increase awareness and efficiencies of your team's dependencies, identify and reduce duplicate tasks and increase cooperation and the speed of processes
  • Learn from tips, case studies, and examples to understand the potential of these processes and achieve business benefits and go beyond the “compliance-only” mindset
  • Raise awareness of the role played in the ERM process through emerging technologies such as AI models, managing model risk, and dealing with environmental and climate change risk 

Course Schedule

 
 Lesson   Topic
Lesson 1: April 7
  Introduction of ERM 2.0 Processes and Drivers
1.1 Forward-looking Enterprise Risk Management Processes
1.2 Overview of Business & Regulatory Drivers
Lesson 2: April 14       Enterprise Stress Testing & Credit Risk 
2.1 Enterprise Stress Testing Fundamentals and Orchestration of the Processes & People
2.2 Forecasting and Stress Testing of Credit Risk and IFRS 9
Lesson 3: April 21   
  Forecasting, Stress Testing Market & Liquidity Risks 
3.1 Market Risk Forecasting and Stress Testing
3.2 Liquidity Risk Forecasting, Stress Testing, and ALM
Lesson 4: April 28    
  Incorporating Operational & Strategic Risks 
4.1 Forecasting and Stress Testing Operational Risk & Addressing Climate Change Risks and Scenarios
4.2 Application of AI Models and Addressing Model Risk Management
Lesson 5: May 5   Alignment and Roll-out of a Successful Stress Testing & Forward-looking Framework 
5.1 Alignment and Integration of the Forward-looking Risk and Finance Processes
5.2 Successful Roll-out of an Integrated Stress Testing & Scenario Analysis Framework

View Lesson Descriptions
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Who Should Attend


Banking / Insurance representatives from these functional areas will benefit from attending this course:


  • Pillar 2 / ICAAP / ILAAP/ ORSA / Stress Testing / Capital Planning
  • Credit / Market Risk Management
  • Enterprise Risk / Strategic Risk Management / Integrated Risk Management
  • Asset & Liability Management & Liquidity Risk Management
  • Risk / Finance controlling
  • Finance / Budgeting / Regulatory Reporting
  • Risk Modelers & Model Risk Management Professionals
  • Risk Management Consultants, Internal and External Auditors
  • Regulators


About Our Expert

  
  Peter Plochan is Principle Risk & Finance Specialist at SAS Institute, assisting institutions in dealing with their challenges around finance and risk regulations, enterprise risk management, risk governance, risk analysis and modelling. Peter has a finance background (Master’s degree in Banking) and is a certified Financial Risk Manager (FRM) with 13 years of experience in risk management in the financial sector. He has assisted various banking and insurance institutions with large-scale risk management implementations, while working internally and externally as a risk management advisor (PwC).


Continued Risk Learning Credits: 9

PRMIA Continued Risk Learning (CRL) programs provide you with the opportunity to formally recognize your professional development, documenting your evolution as a risk professional. Employers can see that you are not static, making you a highly valued, dynamic, and desirable employee. The CRL program is open to all Contributing, Sustaining, and Risk Leader members, providing a convenient and easily accessible way to submit, manage, track and document your activities online through the PRMIA CRL Center. CRL credits will be issued upon completion of the course.

 

Registration
 Membership Type Price
   
 Sustaining, Corporate, and RIM Members $ 400
 Contributing Member $ 450
 Non Member $ 500

If this is your first time accessing the PRMIA website you will need to create a short user profile to register. Save on registration by becoming a member.

 

Register Now!

 
Disclaimer: The external materials referred to throughout this course are public, online materials and freely accessible at disclosed locations.

 

When
4/7/2020 11:59 PM - 5/11/2020 11:59 PM
Where
Virtual Training
 

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