Course Overview

What is Basel III? Basel III is a universally accepted set of measures developed by the Basel Committee on Banking Supervision, as a result of the financial situation of 2007.

It is a regulatory worldwide framework set up voluntarily and covers areas such as capital adequacy, stress testing and market liquidity risks.

The main aim of forming this framework is to strengthen the capital requirements of banks by increasing bank liquidity and decreasing bank leverage.

This Zoe training course will empower you with a greater understanding of Basel III, covering all important facts and concepts.

This course will prepare you for any responsibility coming to you in the areas concerning Basel III. With the knowledge and experience gained through this course, you will be able to help your organisation in any changes, amendments or enhancements needed in response to Basel III.

Course Objectives

The key objective of this training course is to empower professionals to—

• develop a thorough understanding and detailed knowledge of Basel III
• train other professionals on important facts and concepts of Basel III
• review existing documentation and processes of one’s organisation to check for adherence to required standards and practices as per Basel III
• help one’s organisation transition smoothly to a state of operations that is completely compliant with all requirements of Basel III
• introduce and implement advanced technological systems to make operations smarter and more accurate to meet the objectives of Basel III, thus contributing to organisational credibility and development
• devise robust stress testing and capital regulation measures to prevent the organisation from facing issues otherwise
• contribute to organisational development and credibility, thereby helping one’s organisation stay competent in the industry
• acquire the skillset and capabilities to assume higher roles and responsibilities concerning Basel III within or outside one’s organisation, thereby promoting one’s growth and development across a wide range of avenues

Training Methodology

Zoe Talent Solutions is extremely focused on offering relevant training courses to its training audience. Therefore, before the start of each session, the content is thoroughly reviewed according to the professional backgrounds of the training audience.

The training is delivered by highly experienced professionals from a relevant domain, using detailed audio-visual presentations. Trainees are encouraged to participate in the training program through various platforms and group activities, including role-plays, experience sharing, case study discussions, etc.

This useful training format is proprietary to Zoe Talent Solutions and is used for all its courses. It is called the Do–Review–Learn–Apply Model.

Organisational Benefits

Organisations whose professionals undertake this course will benefit in the ways mentioned below:

• Strong and successful operations to ensure capital adequacy with all major functions managed by trained and experienced professionals
• Regular review of existing documentation and processes to ensure that security is high and all facets of operation meet the required standards and benchmarks required
• Application of technology to make operations smarter and enhance security to prevent financial leakage
• Organisational credibility and growth as a result of operational excellence and better management overall
• Smooth and seamless transition of any measure or process or function within the organisation to a system suiting that specified as per Basel III
• Robust stress testing and capital regulation measures to prevent organisational risks and challenges through financial leakage
• Application of advanced concepts, measures and calculations to keep an eye on fund management within the organisation
• Frequent training of other employees on best practices and measures related to Basel III

Personal Benefits

Professionals opting for this training course will benefit in the several ways mentioned below:

• Complete information and knowledge about all requirements and measures of Basel III
• Increased knowledge and confidence to review existing processes and documentation within the organisation to check for changes as per the requirements outlined under Basel III
• Greater understanding and experience to set up robust stress testing and capital regulation measures, in adherence with whatever is required as per Basel III
• Enhanced experience and confidence to help one’s organisation transition certain functions and areas to systems expected as per that outlined under Basel III
• A sense of pride contributing to organisational credibility and development through robust measures to regulate capital and prevent financial leakage
• Increased knowledge and experience to train other professionals on expectations and requirements of Basel III
• Enhanced skill set and capabilities to work in any role concerning Basel III across any organisation, thus not restricting oneself to one organisation and increasing scope for opportunities for career growth and development

Who Should Attend?

• Managers and professionals involved in Basel III decision making and operations
• Senior leaders of the organisation providing strategic guidance for organisational growth and development
• Risk and compliance officers responsible for checking adherence and operational integrity to prevent financial leakage and other such risks to the organisation
• Information technology professionals involved in maintenance and establishment of technology to support adherence to Basel III requirements and measures
• Process owners responsible for overseeing the performance of operations and functions with a definite set of guidelines
• Any other professional interested in knowing more about Basel III

Course Outline

The course covers the following topics to gain a thorough understanding of Basel III:

Module 1 – Overview of Basel III

• Definition, history and information asymmetry
• Moral hazard
• Revised disclosure regime
• Disclosure hierarchy

Module 2 – Pillars of Basel III

• Minimum capital requirement
• Supervisory review process
• Market discipline

Module 3 – Principles of Basel III

• Capital requirements
• Leverage ratio
• Liquidity requirements

Module 4 – Benefits of Revised Regulator Framework (Risk-Weighted Asset Calculation)

• Enhancing robustness and risk sensitivity of standardised approaches
• Constraining use of internally modelled approaches
• Complementing risk-weighted capital ratios with the finalised leverage ratio

Module 5 – Drivers of Market Risks

• Commodity prices
• Equity prices
• Interest rates
• Credit spreads
• Foreign exchange

Module 6 – Revised Market Risk Framework

• The boundary of banking and trading book
• Measurement of market risk capital requirements
  • Internal model approach
  • Standardised approach
• Model testing

Module 7 – Credit Risks

• Definition
• Key elements/framework
  • Exposure at default
  • Loss given default
  • Probability of default
• Approaches
  • Standardised approach
  • Foundation internal ratings-based approach
  • Advanced internal ratings-based approach
• Risk mitigation techniques
  • Netting
  • Collateral
  • Credit derivatives
• Credit valuation adjustments

Module 8 – Operational Risks

• Principles of operational risk management
• Approaches
  • Basic indicator approach
  • Standardised approach
  • Advanced model approach

Module 9 – Liquidity Risks

• Regulatory capital: recapitulation
• Liquidity ratios: rationale, calculation, interpretation
• Liquidity monitoring tools

Module 10 – Capital Management

• Composition of capital
• Capital allocation
• Regulatory versus economic capital
• Capital allocation models
• Risk appetite
• Capital adequacy and capital optimisation

Module 11 – Stress Testing

• Regulatory and managerial principles
• Methodologies
• Reverse stress-testing
• Role in risk governance