CPEs: 32
Instructor: Yiannos Ashiotis
Level: Intermediate
Tuition: £3,495.00
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NEW Auditing Risk Management for Banks and Financial Institutions IARM001

Location: UK EU MENA GCC Time Zone

First Date: Dec 5 - 8 2022

Duration: 4 days

Programme Director: Yiannos Ashiotis FCSI CAMS CPA

All Dates & Locations
Venue Details

Experience the highly-interactive expert-led social learning through Virtual Classroom via Cisco WebEx from Risk Reward.

All our 2022 Virtual Classroom events feature shared (or discrete) live chat between delegates and the expert, participate in topical surveys, polling questions, group exercises and case studies for a tried -and- true engaging and gratifying learning experience.

Need to bring this course in-house, certify the audit team Face-to-face or train 1:1 ? Simply contact us for significant cost savings and dates to support your business and professional development goals.


"Delivering This programme for both the risk managers and the internal auditors succeeded in raising awareness of critical areas of concern for the business. "
Nedbank, South Africa
Agenda Highlights

Session 1: Enterprise Risk Management

Session 2: Corporate Governance

Session 3: Key Risk Management Tools

Session 4: What is Operational Risk?

Session 5: The Building Blocks of Operational risk

Session 6: Credit Risk

Session 7: Credit Modelling

Session 8: Credit Risk Management

Session 9: Liquidity Risk

Session 10: Liquidity Planning

Session 11: Contingency Funding

Session 12: Changing Regulation and Liquidity Risk

Session 13: Market Risk

Session 14: Market Risk Models

Session 15: Market Risk Management Issues


"'Did not realise we could train and certify an entire department.'"
Investec, South Africa
The financial services sector represents a challenge to internal auditors. Banks have created risk functions with ever increasing responsibilities This course looks at the risk function and considers the approach that internal auditors should adopt when auditing this function.

Risk departments of banks have become increasingly complex driven by the demands of regulation and the business. This level of increase in sophistication has accelerated in recent years as many banks have created risk functions with ever increasing responsibilities.

Since the internal audit function needs to address all areas of a financial institution, including risk management, this provides risk management with additional challenges. This 5-day course looks at the risk function and considers the approach that internal auditors should adopt when auditing this function. The course is modular by nature with the first day focusing on the general approach to be adopted when approaching the risk management function and the audit of key areas of common interest to all risk areas. The subsequent four days are separable and consider the audit of:

  • Enterprise Risk
  • Operational risk
  • Credit risk
  • Market risk
  • Liquidity risk

The course refers to the Basel 3 and Basel 2 papers, the IIA Three Line Model and the BIS Operational Resilience papers where appropriate as well as regulations in consultation as to their potential impact on internal audit.

"{The trainer] was very knowledgeable and able to give opinions across a wide variety of subjects. Very well informed. "
Sumitomo Mitsui Bank Corporation, New York
Who Should Attend

Designed primarily for bank internal auditors, risk managers, bank IT auditors and HR managers supporting those business functions and for CAE/CIA’s seeking to set up-to-the-minute, uniform standards and international best practise across the bank’s audit function.

All delegates who complete the course will receive a Certificate in Bank Internal Audit with 40 CPD/CPE credits accredited by CPD UK.

Additional Course Information

What Does It Cover?
Day One: Auditing Enterprise Risk Management and the Risk Department

 Enterprise Risk Management

  • The functions of risk management
  • What is enterprise risk management?
  • The ownership of risk management
  • Policies and procedures
  • The role with regard to:

o    Credit Risk

o    Market Risk

o    Operational Risk

o    Liquidity Risk

o    Strategic Risk

o    Reputational Risk

  • Reporting lines for risk management departments

Discussion session: The role of risk management within a major financial services organization, by reviewing public information on current company structures.

Corporate Governance

  • Corporate governance and risk management
  • What are the risks that risk management are trying to control?
  • What are the controls that are normally applied?
  • Best practise guidance and regulation
  • What is a risk management framework?
  • Reporting risk management
  • The role of the various committees

Case Study: Develop an audit program for the audit of the governance of risk management

Key Risk Management Tools

  • Risk appetite and its calculation
  • The role of risk appetite
  • The risk register
  • Risk ownership
  • Evaluating risk
  • Stress testing and scenario modelling

Day Two: Auditing Operational Risk

What is Operational Risk?

  • The key risks in operational risk
  • The boundaries with credit and market risk
  • The governance of operational risk
  • The operational risk sound practices paper
  • The role of operational risk in the area of transaction investigation
  • The relationship of operational risk and internal audit
  • The role of operational risk with regard to money laundering deterrence and financial fraud

The Building Blocks of Operational risk

  • The development of the internal loss database
  • Specific requirements
  • The importance of scaling and relevance
  • Trying to make it work
  • What causes bank failure?
  • Using external loss data in practice
  • Business process modelling
  • Evaluating operational risk
  • Control and risk self-assessment and its limitations
  • Control indicators, performance indicators and risk indicators
  • Leading and lagging indicators
  • Operational risk stress tests
  • Reporting and monitoring operational risk

Case Studies: Develop audit programs for the audit of internal loss data, control and risk self-assessment and key risk indicators.

Day Three: Auditing Credit Risk and Credit Models

 Credit Risk

  • Measuring and managing credit risk
  • The key requirements of the advanced measurement approach
  • The structure and reporting of credit risk
  • The roles of the credit committees
  • The relationship to ERM
  • The credit policy manual
  • Credit portfolio management

Credit Modelling

  • The role of credit models
  • Building a model
  • Validating a model
  • Approving a model
  • Documenting a model
  • The credit model risk rules
  • Good predictive ability
  • What is a pool?
  • How to deal with the maths

Case Study: Develop an audit program for credit modelling

 Credit Risk Management

  • Retail credit risk
  • Corporate credit risk
  • Counterparty (financial institution) credit risk
  • Exposure at default
  • Loss given default
  • Probability of default
  • Stress testing and scenario modelling
  • Arrears and arrears management
  • Credit provisioning policy

Case Studies: Develop audit programs for EAD, PD, LGD, credit risk stress testing and arrears management

Day Four: Auditing Liquidity Risk and Contingency Funding

Liquidity Risk

  • What is liquidity risk?
  • Who controls it?
  • The relationship between treasury and risk
  • The Basel liquidity risk sound practices paper
  • Liquidity risk management
  • What are liquid assets
  • How liquidity changes under different conditions
  • The liquidity of financial instruments
  • Reporting liquidity risk
  • Behavioural analysis
  • Mitigating liquidity risk

Case Studies: Develop an audit program for liquidity risk management

Liquidity Planning

·         Developing a liquidity plan

·         What should it include?

·         The issues to be faced

·         Dealing with uncertainty

·         The link to capital planning

Case Study: Develop an audit programme for the audit of the liquidity plan

 Contingency Funding

  • Stress testing liquidity risk
  • The role of the contingency funding plan
  • How to select where to obtain funding
  • The role of the central bank
  • Investments locally
  • How assets change their liquidity
  • Developing a plan
  • Approving and reporting

Case Study: Develop a plan to audit the contingency funding plan

Changing Regulation and Liquidity Risk

  • Gearing ratio and its impact on liquidity risk
  • Short term funding requirement
  • Long term funding requirement
  • New types of assets and haircuts

Day Five: Auditing Market Risk, the ICAAP and the Recovery and Resolution Plan

Market Risk

  • What is market risk?
  • How is it controlled?
  • Who does it report to?
  • The regulatory approach to market risk
  • What is VAR?
  • How could it be supplemented?
  • How is it calculated?
  • What can be done to offset market risk?
  • What are the consequences?

Market Risk Models

  • Risk management and market risk
  • The use of market risk models
  • Mark to market and mark to model
  • Developing market risk models
  • Good predictive ability
  • What can go wrong
  • Validating the model
  • Banking book and trading book
  • Hedging and instruments

Case Studies: Develop audit program for market risk models

Market Risk Management Issues

  • Reporting market risk
  • Stress testing and scenario modelling
  • Applying market risk stress events to other risks
  • The impact of the changing economy
  • How markets vary




Learning Objectives

By the completion of this course delegates will have gained specialist technical and behavioural knowledge, techniques and practical approaches to key risk areas of bank internal audit functions and best practise with a global banking perspective specifically developing audit programmes for

  • Enterprise risk management
  • Operational risk management
  • Credit risk management
  • Liquidity and treasury risk management
  • Market risk management

Led by a Tier 1 global bank risk and audit expert, delegates will be trained to appreciate the practical approaches and nuanced behaviours needed towards the designing and conducting audits in these core bank areas.

Delegates who complete the course will receive a Certificate in Auditing Risk Management for Banks and Financial Institutions accompanied by solutions to in-class case studies, group-developed audit programmes and with 30- days Q&A access to the trainer following the course dates.


Social Learning & Methods

Highly interactive expert-led intensive presentation, Q&A, group real-time in-depth case studies, regulation and discussion supported by key principles and theory. The virtual learning platform uses safe, industry preferred encrypted Cisco WebEx to optimize live face-to-face visual interaction, discrete chat, for polling and quizzes.

(An invitation via email with access link is included for all participants.)


NEW Auditing Risk Management for Banks and Financial Institutions

Course Fee

Add voucher RISK10 at check out by Feb 28, 2023

Course Fee (per person):
GBP £3,495.00 (+ UK VAT when applicable)

Number of delegates:

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