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Basel II and III, Enterprise Risk Management (incl ICAAP)

About This Course

With the benefit of hindsight, global regulation failed to cope with the stresses of the 2008/2009 credit crunch. To correct this weakness, Basel III and its subsequent iterations have ensured that the two areas of greatest bank weakness; loss absorbing capital and liquidity, are as robust and plentiful as they need to be to survive a repeat. This however comes at a price. If banks are required to hold much more liquidity than they used to, this must be at the expense of earnings. Ditto more loss absorbing capital. As a result, most global and domestic banks have much stronger balance sheets than before but are significantly less profitable as a result. Basel III has given regulators “super –powers” and they are using them with the full support of an electorate which probably confirms “we don’t completely trust the banks to self-regulate”. As of now, there has probably never been a time in recent history when banks have been so closely micro-managed. Will this make them safer? The jury is still out. Will it make them less profitable? In many cases – but interestingly not all – yes! Basel III is being adopted almost universally as a benchmark of excellence and is probably a pre-requisite for doing business with global banking partners. This is critical for those nations seeking or needing to attract inward capital investment. Without global partners it is very challenging to raise the funds required domestically There will be no Basel IV but there are still plenty of enhancements to Basel III in the pipeline that will probably continue to constrain the ability of banks to take greater risks.

This workshop is designed to explain to delegates in practical terms, the impact of Basel II and its successor, Basel III in the risk management function. It demonstrates how it adds value to an organisation despite its flaws and it explains the key challenges posed by its implementation.

Course Director

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Mark Andrews

Our expert course presenter is a banker with over 40 years’ experience in the UK corporate, investment, private and retail banking sectors. He qualified as an associate of the Chartered Institute of Bankers in 1981 finishing as the top candidate for the year with distinctions in International Trade and winning the Whitehead Prize for Monetary Theory.He’s an accredited Master Trainer in the external training faculty at the world’s largest trade finance bank, HSBC. He has run programmes for them at all levels (including senior management) in risk management (including analytics), Basel III & IV, trade finance, financial crime compliance and regulatory compliance.

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