ENTERPRISE RISK MANAGEMENTA blended learning approach to Enterprise Risk Training

Target AudienceBank-wide training for managers and key staff to heighted awareness of risk and to empower each one to take responsibility for risk management at individual, team and divisional levels.

Overall ObjectivesProvide a deeper understanding of − the business and performance of the bank and the

role of risk within the bank; − how the macro-economic, regulatory and

competitive environment impacts bank strategy and performance and

− how performance is measured by external stakeholders, creditors and regulators.

Specific Objectives− Understand the diverse and changing role of banks,

their responsibility to a wide range of external stakeholders - clients, shareholders creditors and regulators - and how this affects the Bank’s values and expected behaviour.

− Differentiate the main business activities of the Bank with respect to their financial drivers and risk profiles.

− Identify the Bank’s strategy and review it in the context of the macro-economic and competitive environment, with a particular focus on changing regulations.

− Recognise how risk drives financial performance at the Bank by reviewing lessons learned from the financial crisis.

− Identify and benchmark key performance indicators with which the Bank is evaluated by regulators, rating agencies and investors.

Target Audience and Training Objectives

‘It is always a much easier task to educate uneducated people than to re-educate the mis-educated’

- Herbert M Shelton

The training highlights management’s strategic objectives, the progress the Bank has made and the challenges it has faced over the past few years towards achieving these aims. This understanding will enable participants to relate their roles within the bank in the context of its strategy and regulatory and business drivers.

A blended learning approach to Enterprise Risk Training

Designed for staff working in different functions to provide a holistic understanding of banking, and insight into your bank’s business model, strategy, risk profile and financial performance.

eWorkbooks: Banking & Risk Series 1

Video Presentation:The learning journey

Classroom SessionBanking & Risk

Self study:Pre-course assignment

Continuing Professional Development (Optional)

Provide an overview of the training Preview eWorkbook content and interactionPut into context the importance of self –study

and pre-course work.

Case study based on the bank’s business model, strategy, risk profile and performance.

Applications based workshop:− Business Models − Regulatory & Market Drivers− Risk & Financial Drivers

Online quiz

Banking & Risk eWorkbooks Series 1:− Chapter 1: Banking Overview− Chapter 2: Core Products− Chapter 3: Key Risks

Banking & Risk eWorkbooks: Series 2 & 3Follow up assignments / webinarsSpecialist risk curriculum

The blended learning curriculum combines our eWorkbook series with interactive tailored classroom training.

Adeva’s Foundations of Banking & Risk eWorkbooksprepare learners to understand the business of banking and appreciate both the financial dynamics of banks and the risk profiles of their activities.

Series 1: Foundations of Banking & Risk introduces the main business models, core products and key risks of banking.

eWorkbook Series 1: Foundations of Banking & Risk

types of banks; how different business models are reflected in a bank’s financial statements & introduction to key financial indicators

include loans; deposits; derivatives; repurchase agreements; securities; contingent liabilities.

covering credit, counterparty, market, operational, liquidity and regulatory risks & introduction to key financial indicators.

01 Banking Overview

02 Core Products

03 Key Risks

Concepts are presented in a logical and structured manner with explanations illustrated by real bank disclosures that are up to date and relevant.

Built-in quiz questions are provided regularly to test understanding while the topic is fresh in the participant’s mind.

With 25+ years experience in devising effective training on bank risk management and analysis, we have applied our expertise to create eLearning that is structured, focused on key topics and relevant to the learner.

Why our eWorkbooks consistently get outstanding feedback

Our eWorkbooks are designed to be highly interactive and engaging.

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2

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Theory is explained and illustrated in an engaging format

THEORY

Real-life examples demonstrate practical applications

EXAMPLE

Interactive tests check knowledge and reinforce understanding

TEST

Classroom Content: 1–day Course Outline I. BUSINESS MODEL

AIM: Appreciate the bank's strategic and financial goals through its key business lines.

OUTCOMES• How values feed into performance• Distinguish the bank from peers• Identify the bank’s key strengths and weaknesses

CONTENT• Changing operating environment and the impact on bank

strategy and performance.• The bank's business model compared to peers• Performance drivers of the balance sheet and income

statement.• The bank's divisions: competitive advantages, risk and

financial drivers.

II. REGULATORY AND MARKET DRIVERS

AIM: Understand how regulation impacts the market and drives bank performance; interpret the bank’s debt and equity indicators benchmarked to peers.

OUTCOMES• Who are the Bank’s key external stakeholders and how

they measure performance?• What drives the Bank’s share price and credit rating and

how does it compare?• Understand the impact of changes in regulation and how all

these factors impact strategy.

CONTENT• Regulation: Meeting Basel III capital and liquidity targets:

CET1, net stable funding and liquidity coverage • Understand the impact of changes in regulation and how all

these factors impact Bank strategy• Compare the perspectives of the Bank’s key external

stakeholders. • Identify the key drivers of the Bank’s share price and credit

rating.

III. RISK AND FINANCIAL DRIVERS

AIM: Identify the bank's key risks and understand how they are measured and managed. Appreciate the key performance indictors used to measure risk and how they benchmark against peers.OUTCOMES• Identify and quantify key risks • Recognise the progress that the Bank has made towards

its strategic goals• Understand the challenges faced by banks in the current

macro-economic, regulatory and competitive environment

CONTENT• Measuring and managing key risks at the bank: credit,

market, operational, conduct and compliance.• Principles of sound banking: Asset quality, stability of

funding, liquidity and adequacy of capital (CAMELS).• Key indicators of performance:

• Asset quality: impaired loans and reserves• Earnings: RoE, Net interest margin, Cost / income;

non performing loans

eWorkbook Catalogue

Self-paced study Real life examples Knowledge and understanding checks

Foundations of Banking & Risk SERIES 1

01 Banking Overview

02 Core Products

03 Key Risks

Designed as bank-wide training: provides fundamental knowledge applicable to all.

Regulatory, Risk & Performance Drivers SERIES 2

04 Key Performance Measures

05 Bank Capital Management

06 Liquidity and Funding

07 Enterprise Risk Management

Designed for senior managers who require more in-depth understanding of regulatory and performance measures.

Bank Financial Strength SERIES 3

08 Accounting Principles

09 Capital Adequacy

10 Asset Quality

11 Management

12 Earnings

13 Liquidity

14 Sensitivity to Market Risk

Designed for FIG professionals.

Click on each series for further content information

Introduces the main business models, core products and key risks of banking.

types of banks; how different business models are reflected in a bank’s financial statements.

include loans; deposits; derivatives; repurchase agreements; securities; contingent liabilities.

covering credit, counterparty, market, operational, liquidity and regulatory risks.

Foundations of Banking & Risk SERIES 1

01 Banking Overview

02 Core Products

03 Key Risks

Designed to give experienced managers and risk professionals more insight into the governance and regulation of risk and how it impacts performance.

introduces key analytical issues and core ratios used to evaluate bank performance through the application of the CAMELS framework.

covers key definitions and types of capital: book, market and regulatory capital (with optional advanced content available to extend learning for specialists).

Basel III principles of sound liquidity management and key ratios: net stable funding and liquidity coverage.

risk governance, regulatory and compliance risk; identifying, measuring and monitoring risks.

Regulatory, Risk & Performance Drivers SERIES 2

04 Key Performance Measures

05 Bank Capital Management

06 Liquidity and Funding

07 Enterprise Risk Management

For FIG professionals, this series uses the CAMELS framework and provides further depth and insight into key indicators of performance and financial strength

08 Accounting Principles

09 Capital Adequacy

10 Asset Quality

11 Management

12 Earnings

13 Liquidity

14 Sensitivity to Market Risk

includes loan accounting; held-to-maturity investments; fair value; available-for-sale.

measurements of capital adequacy, sustainability, risk weighted asset intensity and capital vulnerability.

measurements of the quality of asset portfolios: loans, securities and derivatives. Includes loan portfolio growth and concentration; reserve adequacy; market, credit and counterparty risks in securities and derivatives.

analysis of management strategy, risk management, corporate governance and shareholder support. Including market indicators, such as price/book and CDS prices.

measurements of diversity and stability of earnings and cost control. Focus on net interest, other revenues and cost / income as well as overall measures, eg. ROE, ROA, RORWA

measuring diversity and stability of funding sources as well as sufficiency of liquidity and alternative back up sources to cover stress outflows.

measuring both trading book and banking book market risk. Focus on VaR, trading revenue sources and exposure to rates and FX in the banking book.

Bank Financial Strength SERIES 3

Adeva Partners specialises in providing highly tailored training solutions and consulting services in credit, risk and corporate finance to clients in the financial services industry.

We work in partnership with our clients in the design, development and delivery of classroom training, blended learning solutions, and more to enable a strong analytic and risk culture in tandem with a sound “do business” approach.

Our clients include many global systemically important financial institutions, developments banks and we have been trusted to provide curriculum training for one of the world’s leading banking supervisors.

ABOUT US

• Acquisition and leveraged finance• Market risk management: derivative

solutions from a corporateperspective

• Identifying and devising supply chainsolutions

• Debt structuring solutions• Origination for distribution: DCM and

private placements• Business development: an analytical

approach to uncover opportunities

Covering multinationals, mid and small cap, SME, emerging market companies

• Corporate credit applications• Financial statement analysis• Forecasting and stress testing• Credit analysis and debt structuring

• Writing effective credit applications• Warning signs and lesson learned• Restructuring problem credits• Relative value: Fixed income credit

analysis

• Banking and risk: A graduate inductionprogramme

• Enterprise risk management• Risk management in banks

• Liquidity risk management• Operational risk management• Credit portfolio management

• Banks: Regulatory and risk drivers ofperformance

• Basel III / Dodd Frank: implications andopportunities

• RWA Management & Regulation• Insurance: Solvency II implications

Corporate Credit Analysis

Risk and Regulatory Training

Corporate Finance

Covering banks, insurance, funds, Non-bank FIs

• Credit assessment: foundations/intermediate / advanced• Macro economic, sovereign and

regulatory impact• Accounting and financial analysis• Structuring exposures

• Warning signs and lessons learned• Market risk management: derivative

solutions for FI’s• Business development: an analytical

approach to uncover opportunities

Financial Institutions Analysis