This course provides participants with an overview to Basel II and III, with a specific emphasis on ICAAP and stress-testing.

Key features include:

  • An overview of some principles of risk management, as used within the main regulatory texts
  • The Basel Accords and the regulation for risk management, supervision and disclosure
  • The approaches for calculating regulatory capital (pillar 1), including Advanced IRB
  • An overview of the shortcomings of Basel II as highlighted by the crisis
  • An overview of the new emphasis of risk management regulation: amendments to pillar 1, reinforcements of pillar 2, ICAAP, stress-tests
  • How does international regulation apply into the Kuwaiti context, and in Islamic banks

 

Outlines

  • Session 1: Risk and its Management
  • Session 2: Risk regulation
  • Session 3: Calculating credit risk capital under Basel
  • Session 4: The Standardised Approach
  • Session 5: The Internal Ratings-Based approach
  • Session 6: Market risk
  • Session 7: ICAAP and Selected Topics
  • Sessions 8: Stress-testing
  • Session 9: Stress-test Scenarios
  • Session 10: Usage of stress-tests