The ICAAP Workshop; Preparing, Reviewing & Deployment

Name: The ICAAP Workshop; Preparing, Reviewing & Deployment - Part 1
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2 Part Course | Learn the ICAAP principles, their relevance and application to the ICAAP - with an overview of the ILAAP.

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A one-day ICAAP training course presented over two half-days in a virtual class

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In-house pricing available – often more cost-effective for teams of 10+

Download: Course Outline

Part One

Session 1: The Essence of Risk Management

What is an ICAAP?
What is an ILAAP?
Why do we need an ICAAP, and why are there regulations?
Risk Appetite set by the board
The strategic vision: set by the board
Using risk appetite and strategy as the route map, senior management compiles the ICAAP risk management tool to confirm that the Board’s vision is within the capacity of the business
ILAAP guidelines: created to confirm that sufficient liquidity is always maintained
Why the board must oversee, validate, approve and ensure the ICAAP and ILAAP are deployed effectively, especially the ICAAP modelling methods used
The finished ICAAP & ILAAP are presented to the PRA, who do not “approve” it but have the right to review and challenge

Session 2: The Basel III & CRD IV Framework - Overview

The Regulations - Basel III Overview
Going Concern Capital Tier 1
Gone Concern Capital Tier 2
ICAAP & ILAAP Basel III further requirements – overview
CAR, Leverage Ratio, and Capital Buffers
The concept of risk-weighted assets and its impact on ICAAP Asset Management
LCR & NSF – two critical liquidity measures in the ILAAP requirements
ICAAP Workshop Discussion/Case Study: Looking at Pillar 1 (The “Key”) Risks in more detail

Session 3: Internal Capital Adequacy Assessment Process

The key ICAAP principles
Identifying risks and allocating risk capital
Pillar One & Pillar Two risks
Challenge and independent review
Capital buffers – optional and mandatory
Regulatory versus economic capital
Arriving at the agreed CAR

The Detail

Suggested Internal Capital Adequacy Assessment Process framework, content, and layout
The ICAAP risk assessment process from preparation to Board approval
Challenge and independent review
Internal Capital Adequacy Assessment Process ‘Hot Buttons’ and the regulatory feedback
Discussion/Case Study: Pillar 1 Additions, when are they needed?

Part Two

Session 4: Risk Components

Pillar 1 Risks:
- Credit
- ICAAP Operational Risk
- Market
- Liquidity
Calculating the key risks
ICAAP Pillar 2 risks – 2a process
Pillar 2 risks – regulatory review – 2b process
Putting it all together

Session 5: Liquidity Risk - Internal Liquidity Adequacy Assessment Process (ILAAP Training)

What is an ILAAP?
Prime Liquid Assets
What is the ILAAP meant to achieve?
Asset Liability Management (ALM)
Yield curves
Discussion/Case Study: The impact of LCR & NSF in practice

Session 6: ESG

What is ESG?
The current regulatory position
Actions needed now
Assessing the bank
Assessing clients
“Greenwashing”
“Greenium”

Session 7: Stress Testing / Scenario Analysis

Definition
Doing these well and properly
BIS – Sound Principles
Key concerns
ICAAP stress testing scenarios single high-impact events – ‘Shockwaves’
Discussion/Case Study: The Importance of Stress Testing & Scenario Modelling on both Pillar 1 & Pillar 2 Risks

Session 8: Moving Forward

Revised standardised risk modelling that will change ICAAP modelling for larger institutions, and is designed to simplify the Modelling process:
- The changes will take us back to basics
- These changes have been postponed to 2025
Post-Brexit City overhaul and the likely regulatory focus
The impact of ESG
Final thoughts

Session 9: ICAAP Course Wrap-Up and Final Discussion

This ICAAP training expert has had a long, varied and “fast track” career. With Lloyds Bank, he earned a very senior management position in the bank’s private banking and wealth management division from an early age. He was then headhunted to join a merchant bank at the main board director level to head both the private bank and the group risk management function. He now has over 40 years of experience in managing risk in the UK banking and financial services sector.

Since retiring, he has been a freelance risk management training consultant and is currently an external Master Trainer at both HSBC and Bank of China. Here, he has delivered major projects on a wide range of topics. At HSBC, he helped design their global flagship Risk Management Programme for senior middle managers and has delivered this globally for the past 5 years. He has also created and delivered training to a vast range of clients, from global giants to small firms and partnerships, which includes ICAAP training courses. He is an accomplished global trainer and has delivered extensive programmes in the UK, USA, South America, Europe, Africa, Asia, and the Middle East.

He is an adaptive, hands-on, and very sought-after facilitator. Feedback from delegates is always excellent, and he is comfortable training at any level of seniority and experience. This includes training “black belts” and novices.

Besides his risk management specialism, his expertise includes but is not limited to Risk Management, Trade Finance, Regulatory Compliance, FCC & AML, and all aspects of Corporate, Private & Retail Banking. He is also an experienced soft skills trainer and has completed many “train the trainer” assignments.

Redcliffe Training's ICAAP course will cover the following:

The significance and purpose of the ICAAP and ILAAP, their critical role in risk management and how regulation impacts the firm.
Understand how it can be adopted proportionately - so that simpler and less complex businesses don’t need a “War & Peace” version.
What is required and what the PRA expects from both ILAAP & ICAAP submissions to meet their definition of “proportionate”.
To appreciate that it is not only a document, but a process.
To understand that the Internal Capital Adequacy Assessment Process must be constantly fine-tuned and updated if it is to perform its function.
How to prepare, populate and complete an ICAAP under the regulations and pitched at a level appropriate for your business.
To understand it is a 3-5-year forward-looking risk document that compels top management to plan for the risks they are prepared to take. To ensure that enough capital and, through the ILAAP, liquidity is available to support those risks.
The challenges faced at the implementation and updating stage, as well as the ICAAP Modelling stage.
Why regulators consider the Internal Capital Adequacy Assessment Process to be a crucial risk management tool.
The impact of ESG & the imminent Post-Brexit financial reforms.

The ICAAP and ILAAP are among the most important dynamic risk tools available to a financial business. This ICAAP training course will explain in clear and understandable terms why this is and will show how these critically important risk management tools can work for you.
The Internal Capital Adequacy Assessment Process is more than a document; it is a dynamic Asset Management. The ICAAP Workshop will show you why this is, how it should be deployed and why it must be regularly updated. We cover both ICAAP regulation and modelling in this course.
At the heart of the ICAAP are risk categories and risk management. These are core competencies for us.
Redcliffe Training has been an established risk management training provider for over 28 years. We have been appointed as Master Trainers of ICAAP Risk to management at all levels at three of the world’s largest Banks.
We are specialists in advising and training small, emerging, challenger, and medium-sized banks. We know how difficult defining “proportionate” can be.
All our trainers are experts on this topic and have retired from very senior positions in financial services, where the Internal Capital Adequacy Assessment Process framework creation was a mandatory requirement. This enables them to share their real-life experiences with delegates throughout our ICAAP courses. Delegates highlight that this enhances and improves the learning experience considerably.
We are always judged by our results, which speak for themselves. The feedback received from previous delegates has always been excellent.

This ICAAP Workshop is a must-know for:

Senior and top managers seeking to gain a better understanding of their responsibilities for ICAAP Regulation, Modelling & Asset Management.
Compliance & Risk Officers charged with creating and updating the ICAAP.
Department Heads, Team Leaders and Supervisors.
Any professionals with an interest or whose roles and responsibilities involve the ICAAP in part or whole.

Redcliffe Training's ICAAP Workshop is a comprehensive training designed to enhance your understanding and practical application of the Internal Capital Adequacy Assessment Process.

The ICAAP is a crucial regulatory framework that financial institutions must adhere to. This course provides in-depth insights, practical tools, and hands-on exercises to master the complexities of the ICAAP and capital planning.

Our workshop-style format features the use of real-life case studies. Each session will conclude with a discussion of the principles covered, their relevance, and their application to the ICAAP method and the associated plan.

Before taking this ICAAP Workshop, you should have some familiarity with financial services and principles of risk and capital management.

The trainer is well-experienced in this area and was able to provide us with real examples.
Detailed information and practical examples.
Well structured and easy to understand.

Request a fee quote for an exclusive in-house presentation of this course

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(min. 50 participants)