Risk Management Training Programs
The Fundamentals of Basel IV
Réf: FOB4-205
The Fundamentals of Basel IV
IN-PERSON OR REMOTE CLASS
Duration: 2 days
➕ Remote learning activity
2050,00 € VAT Exempt (*)
📌 Reference: FOB4-205
(*) 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
Test Your Knowledge!
Assess your knowledge and enhance your learning.
- ✅ Identify your strengths.
- ✅ Focus on key concepts.
- ✅ Improve your efficiency!
📌 Dive Deeper into the Topic
Want to better understand risk management mechanisms and their application in financial risk management? Explore our detailed articles:
📖 Understanding Wrong-Way Risk in Simple Terms 📚 Understanding Funding Value Adjustment in Simple Terms