Risk Management Training Programs

The Fundamentals of Basel IV

Réf: FOB4-205

The Fundamentals of Basel IV

PUBLIC TRAINING
IN-HOUSE TRAINING
TAILOR-MADE TRAINING

IN-PERSON OR REMOTE CLASS

Duration: 2 days

➕ Remote learning activity

2050,00 € VAT Exempt (*)

📌 Reference: FOB4-205


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(*) As a training organization, Finance Tutoring benefits from a VAT exemption under Article 261-4-4° of the French General Tax Code (CGI).

Training Description

The Fundamentals of Basel IV

The training course "The Fundamentals of Basel IV" aims to provide an in-depth understanding of regulatory developments and their impact on counterparty risk management.


Designed for risk managers, analysts, and compliance professionals, this training covers essential topics:

  • Evolution from Basel III to Basel IV: New challenges and impacts for financial institutions
  • Counterparty risk measurement: Advanced approaches to Exposure at Default (EAD) calculation and SA-CCR
  • CVA management: Credit Valuation Adjustment and new regulatory methods
  • Integration of the FRTB framework: Capital requirements and internal model approach

Training Objectives

  • Understand the evolution and objectives of the Basel IV agreements
  • Master the calculations of exposure at default and capital requirements
  • Apply new standards for counterparty risk and CVA
  • Integrate the FRTB approach and its implications for trading portfolios
  • Anticipate future trends, including ESG integration and emerging technologies

Target Audience

  • Counterparty risk managers
  • Traders and derivative product sales professionals
  • Regulatory compliance officers
  • Quantitative analysts (Quants)
  • Auditors and consultants in banking regulation

Training Duration

  • 2 days (14 hours)

Training Program

The Fundamentals of Basel IV

I. Introduction to the Fundamentals of Basel IV

  • Regulatory evolution: From Basel III to Basel IV
  • Main objectives: Financial stability, improved risk management, strengthened capital
  • Specific impacts for counterparty desks

II. Key Measures for Counterparty Risk under Basel IV

  • Exposure at Default (EAD): Advanced calculation methodologies under Basel IV
  • Standardized Approach for Counterparty Credit Risk (SA-CCR)
  • Expected Positive Exposure (EPE) and Potential Future Exposure (PFE)

Practical Case:

Calculating the EAD of a derivatives portfolio under SA-CCR.

III. Managing CVA Risk under Basel IV

  • Understanding Credit Valuation Adjustment (CVA) and its challenges in the new regulatory framework
  • Calculation methods: Basic Approach (BA-CVA) vs Standardized Approach (SA-CVA)
  • Integrating CVA into proactive counterparty management

Practical Case:

Evaluating CVA under different methodologies (Excel, Python)

IV. Integration of the FRTB Framework

  • Overview of changes introduced by FRTB
  • Calculating capital requirements: Standardized Approach and Internal Model Approach
  • Implications for derivatives and structured transactions

Practical Case:

Assessing capital requirements under the FRTB framework for a sample portfolio

V. Advanced Counterparty Risk Management

  • Identifying and managing Wrong-Way Risk (WWR)
  • Advanced stress testing and regulatory scenarios under Basel IV
  • Innovative approaches: Integrating ESG and Blockchain technology into risk management

Practical Case:

Simulating a regulatory stress test integrating ESG risk

VI. Future Trends and Regulatory Innovations

  • Emerging technologies: Blockchain and Smart Contracts
  • Impact of ESG criteria on counterparty risk management
  • Perspectives on future developments in banking regulation

Practical Case:

Exploring blockchain applications in collateral management

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📌 Dive Deeper into the Topic

Want to better understand risk management mechanisms and their application in financial risk management? Explore our detailed articles:

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