Credit Risk Management under the Basel Accords
An Analysis of Basel II, Basel III, and Basel IV: Credit Risk
Ratings 4.76 / 5.00
What You Will Learn!
- The concepts of credit risk under Basel II, III, and IV accords/frameworks and elaborate on the changes introduced by each framework.
- Critical Analysis of the Basel Accords: Necessity, Advantages, and Shortcomings
- The key financial regulations around Basel Capital Adequacy requirements
- The key attributes/parameters used in deriving Risk-Weighted Assets (RWA) for credit risk.
- High-level analysis of the key changes introduced in Basel IV to Risk-Weighted Asset calculation for Credit Risk
Description
This intensive program delves into the essential aspects of managing credit risk within Basel II, III, and IV frameworks. Designed for beginners and professionals seeking more profound expertise, this course equips you with the knowledge and skills to navigate the complexities of bank capital adequacy regulations.
Key Focus:
Mastering the Fundamentals: Gain a thorough understanding of the Basel Accords' evolution, purpose, and impact on the global financial system.
Demystifying Capital Calculations: Explore the various capital types (CET1, Tier 1, Tier 2), their calculation methods, and their influence on risk-weighted assets.
Navigating Risk Weighting: Unravel the risk weighting system, its application in determining capital requirements, and its role in mitigating credit risk exposure.
Basel III in Depth: Analyze the core Basel III standards, including the CET1 ratio, CAR, and Leverage Ratio, and their practical implications for capital adequacy.
Embracing Basel IV: Compare and contrast the new Basel IV standards with Basel III, focusing on critical changes and their impact on credit risk management practices.
Learning Outcomes:
Confidently explain the Basel framework and its objectives for ensuring financial stability.
Differentiate between capital types and calculate capital requirements under each Basel Accord.
Apply risk weighting strategies to assess exposure and determine capital needs accurately.
Appreciate the significance of Basel regulations in safeguarding banks and depositors.
Develop practical skills for effective credit risk management within the regulatory landscape.
No prior knowledge of Basel regulations is required!
Assessment:
Your understanding will be continuously evaluated through interactive quizzes and a comprehensive final exam.
By completing this program, you'll gain the confidence and expertise to manage credit risk effectively within the evolving Basel framework.
Who Should Attend!
- Anyone interested in learning more about regulatory reporting or building a career in financial services
- Analysts
- Risk Managers
- Investors
- Regulators
- Internal Auditors