Risk Management in Banks

This DIXONTECH program delivers a comprehensive understanding of risk management frameworks in banking institutions. Participants will learn how to identify, assess, monitor, and mitigate different types of risks including credit, market, operational, and liquidity risks in line with Basel III standards. Through global case studies and interactive sessions, this course equips banking professionals with strategic tools to maintain financial stability and regulatory compliance.

TRAINING TOPICS:

• Overview of Banking Risk Frameworks
• Credit, Market, and Liquidity Risks
• Operational and Compliance Risks
• Risk Appetite and Risk Culture
• Risk Measurement and Mitigation Tools
• Stress Testing and Scenario Analysis
• Governance, Regulation, and Basel III Compliance
• Risk Reporting and Monitoring

BY THE END OF THIS TRAINING COURSE, DELEGATES WILL BE ABLE TO:

•  Identify and measure key risk types
•  Apply Basel III compliance principles
•  Conduct effective stress tests
•  Design robust risk mitigation plans
•  Develop strong risk governance structures
•  Integrate risk management into business strategy
•  Evaluate credit and liquidity risk exposure

TRAINING IS TAILORED TO:

•  Banking and finance professionals
•  Risk and compliance officers
•  Internal auditors and controllers
•  Treasury and investment managers
•  Financial analysts and consultants
•  Regulators and policy developers
•  Strategic and corporate risk managers

TRAINING METHODOLOGY:

This training uses interactive lectures, real-world banking case studies, and hands-on simulations to help participants apply risk management frameworks effectively. Group exercises and scenario-based discussions enhance decision-making and practical understanding of Basel standards and bank wide risk strategies.

DAY 1

INTRODUCTION TO BANK RISK MANAGEMENT FRAMEWORKS

•  Understanding the nature and types of banking risks
•  Core principles of financial risk management
•  The three lines of defense in banking operations
•  Risk appetite and tolerance concepts
•  Governance and regulatory frameworks overview
•  Role of the risk management committee
•  Key performance indicators in risk control
•  Basel III and its global implications

DAY 2

CREDIT RISK MANAGEMENT AND MITIGATION

•  Definition and sources of credit risk
•  Credit analysis and rating methodologies
•  Probability of default and loss given default
•  Credit risk modeling and validation
•  Loan portfolio management and diversification
•  Collateral valuation and management
•  Early warning signals and monitoring systems
•  Credit risk mitigation and hedging instruments
•  Internal ratings based (IRB) approaches

DAY 3

MARKET AND LIQUIDITY RISK MANAGEMENT

•  Understanding market risk drivers in banking
•  Value at Risk (VaR) measurement methods
•  Interest rate risk in the banking book (IRRBB)
•  Currency and commodity price exposures
•  Liquidity risk indicators and management
•  Liquidity Coverage Ratio (LCR) & NSFR
•  Funding risk assessment and contingency planning
•  Market risk stress testing and sensitivity analysis

DAY 4

OPERATIONAL, COMPLIANCE, AND CYBER RISKS

•  Overview of operational risk sources and controls
•  Risk and control self-assessment (RCSA) techniques
•  Fraud, AML, and compliance risk management
•  Cybersecurity threats and digital risk protection
•  Business continuity and disaster recovery planning
•  Risk reporting and incident management systems
•  Key Risk Indicators (KRIs) and dashboards
•  Governance of operational resilience frameworks

DAY 5

ENTERPRISE RISK MANAGEMENT AND STRESS TESTING

•  Principles of Enterprise Risk Management (ERM)
•  Integrating risk management into strategy
•  Developing a holistic risk culture across departments
•  Risk aggregation and capital adequacy assessment
•  Scenario analysis and macroeconomic stress testing
•  Internal Capital Adequacy Assessment Process (ICAAP)
•  Risk reporting to senior management and regulators
•  Final group exercise: designing a risk mitigation plan