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The ICAAP Workshop; Preparing, Reviewing & Deployment

2 Part Course  |  Discussing ICAAP principles, their relevance and application to the ICAAP – with an overview of the ILAAP

Advanced Fixed Income Analysis Training Course

A one-day course presented in two half-day live webinars

  • Both the ICAAP and ILAAP are probably the most important dynamic risk tools available to a financial business. We will explain in clear and understandable terms why this is and will demonstrate how these critically important risk management tools can work effectively for you
  • The ICAAP is more than just a document it is a dynamic process. We will explain clearly and concisely why this is, how it should be deployed and why it must be regularly updated.
  • At the heart of the ICAAP is risk appetite and risk management. These are core competencies for us
  • We have been established for over 20 years and have been appointed as Master Trainers of Risk to management at all levels at three of the world’s largest Banks
  • We are also specialists in advising/training small, emerging, challenger, and medium-sized banks and are well aware of 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 ICAAP creation was a mandatory requirement. This enables them to share their past real-life experiences with delegates which we find 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

  • To explain the significance and purpose of the ICAAP and ILAAP and their critical role in risk management
  • To understand that it can be adopted proportionately - so that simpler and less complex businesses don’t need a “War & Peace” version. We will explain clearly what is required in practice and what the PRA probably mean by “proportionate”
  • To appreciate that it is a process, not just a document.
  • To understand that the ICAAP must be constantly fine-tuned and updated if it is to perform its function fully
  • To know how to prepare, populate and complete an ICAAP at the 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 and to ensure that enough capital and through the ILAAP, liquidity, is available to support those risks
  • To appreciate the challenges that will be faced at both the implementation and updating stage
  • To understand why regulators consider the ICAAP to be a crucial risk management tool
  • To consider the impact of ESG

Part One

Session 1: The Essence of Risk Management

  • What is an ICAAP
  • What is an ILAAP
  • Why do we need an ICAAP?
  • Risk Appetite set by the Board
  • Strategic vision – set by the Board
  • Using risk appetite and strategy as the route map, senior management compile the ICAAP to confirm the Board’s vision is within the capacity of the business
  • ILAAP was created to confirm sufficient liquidity is always maintained
  • The Board must oversee, validate, approve and ensure the ICAAP & ILAAP are deployed effectively

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

  • Basel III Overview
  • Going Concern Capital Tier 1
  • Gone Concern Capital Tier 2
  • Basel III requirements - overview
  • CAR, Leverage Ratio, and Capital Buffers
  • The concept of risk-weighted assets
  • LCR & NSF – two critical liquidity measures in the ILAAP
  • Discussion: Agree on ICAAP content and plan

Session 3: Internal Capital Adequacy Assessment Process (ICAAP)

  • The key 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 framework, content, and layout
  • The ICAAP process from preparation to Board approval
  • Challenge and independent review
  • ICAAP ‘Hot Buttons’ and regulatory feedback
  • Discussion: Agree on ICAAP content and plan

Part Two

Session 4: Risk Components

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

Session 5: Liquidity Risk - ILAAP

  • What is an ILAAP
  • Prime Liquid Assets
  • What is the ILAAP meant to achieve
  • Asset Liability Management (ALM)
  • Yield curves
  • Discussion: Agree on ICAAP content and plan

Session 6: ESG

  • What is ESG
  • Current Regulatory position
  • Actions Needed Now
  • Assesing the Bank
  • Assessing Clients
  • “Greenwashing”
  • “Greenium”

Session 7: Stress Testing / Scenario Analysis

  • Definition
  • Doing these well and properly
  • BIS – Sound Principles
  • Key concerns
  • Stress testing single high impact events – ‘Shockwaves’
  • Discussion: Agree on ICAAP content and plan

Session 8: Moving Forward

  • Revised standardised modelling – soon?
  • Likely Regulatory focus
  • Final thoughts

Session 9: Wrap-Up and Final Discussion



The trainer had a highly successful, long, and varied “fast track” career in Lloyds Bank which led him to a very senior management position in the bank’s private banking and wealth management division at an early age. He was then “headhunted” to join a merchant bank at 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.

He has been a freelance risk management training consultant since retiring and is currently an external Master Trainer at both HSBC and Bank of China where 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. 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 a highly adaptive, hands-on, and highly sought-after facilitator who always receives excellent feedback from delegates. He is comfortable training at any level of seniority and experience, from “black belts” to novices. In addition to 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 a highly experienced soft skills trainer and has completed numerous “train the trainer” assignments.

Who Should Attend

Anyone with an interest in the subject

Methodology

Workshop style course featuring 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 and the associated plan.

Knowledge Pre-Requisites

Participants should ideally 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.
Number of places:
Part 1
Number of places:
Part 2

£695.00

Per participant per part
Discounts available for multiple place booking find out more
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