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Basel II and Risk Management Training Course

This is a standard five-day course concentrating on the key issues that arise from the Basel Accord and the practical solutions that can be applied. If credit issues are to be considered in depth then a longer course is required. On balance the course is intended to take one day for credit risk, one day for trading book issues and three days for operational risk/risk management.


With the finalisation of the Basel Accord there has been an increased focus on operational risk. The BIS have now affirmed the delivery date of the rules for credit and trading book issues and for operational risk for the standardised and basic indicator approaches. They have only delayed the more advanced approach by a year. This means that for the majority of institutions the date is now set and they need to move forward with a degree of urgency.

Learning Objectives

The learning objectives are to ensure that the audience fully understand all of the requirements in respect of the Accord. The types of options available and solutions provided will be discussed and approaches recommended. We also link the risks set out in the Accord to risk management and explain where regulatory capital ends and where economic capital starts. This is explained throughout the course.

Who would attend

Anyone involved with operational risk would require this material. We find the following attending our events:

  • Head of Risk Management
  • Board directors
  • Head of Internal audit
  • Head of Compliance
  • Project managers
  • Business heads
  • Risk management professionals
  • Team members

Course Contents

This course is offered without the optional additional mathematics section. From our experience to date there has been greater interest in the courses with only limited mathematical content.

The key subjects to be covered in the course are as follows:

  • The development of the Basel Accord
  • Calculation of minimum capital requirements
  • Credit risk under the Basel Accord
  • The standardised approach
  • External credit assessments
  • Implementation considerations
  • Credit risk mitigation
  • The internal ratings approach
  • The securitisation framework
  • Trading book issues
  • Prudent valuation guidance
  • Trading book capital treatment
  • The Basel Accord options for operational risk
  • What is operational risk?
  • Calculating the operational risk capital charge under the basic and standardised approaches
  • The Best Practices paper
  • Lessons from major losses
  • How to use external loss data
  • Scenario analysis
  • Business continuity planning
  • Stage in building a operational risk strategy
  • Risk identification
  • Benefits of operational risk approaches
  • Operational risk policies
  • Operational risk tolerance
  • Operational risk structure
  • Legal and compliance and operational risk
  • HR & operational risk
  • Operational risk ownership
  • Loss databases
  • Operational risk training
  • Investigating losses
  • Control and risk self assessment
  • Measuring operational risk
  • Sensitivity analysis
  • Data collection
  • What is really unexpected?
  • External events
  • Mitigating operational risk
  • Outsourcing (including new Basel paper)
  • Insurance
  • Regulatory capital calculation
  • Combining qualitative and quantitative data
  • Economic capital impact
  • Key risk indicators
  • Scorecard approaches
  • IT and manual solutions
  • Corporate governance and Sarbanes Oxley
  • Summary of what is required under the AMA approach and the partial AMA approach

State of the art facilities
Delegates can study in our comfortable hi-tech learning environment in London, near Liverpool Street Station.

Basel II & Risk Management

Course Venue: London EC2