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NEW Board Credit, Investment and Governance Committees – What Really Matters CGS410
Location: Global Markets and Time Zones
First Date: May 13 - 15 2024
Duration: 3 days
Programme Director: Dennis Cox FCSI FRISM FCA AIIA BFP
All Dates & Locations
Venue Details
Experience the highly-interactive expert-led social learning through Virtual Classroom via Cisco WebEx from Risk Reward.
All our 2024 Virtual and Face-to-Face 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 and/or at your location anywhere worldwide? Simply contact us for a prompt and courteous reply offering significant cost savings and dates to meet your specific requirements.
"Most valuable aspect? Considering how to make my role on the Board more pro-active."Bank Board Director, Investment Bank, Nigeria
Agenda Highlights
Session 1: Introduction
Session 2: Corporate Governance
Session 3: The 3 Lines Model and Corporate Governance
Session 4: Key corporate governance Best Practice
Session 5: Corporate Governance and Strategy
Session 6: Independence, Remuneration and Conflicts of Interest
Session 7: Credit Responsibilities and Lending Controls
Session 8: Loan Pricing & Required Return
Session 9: Corporate Lending
Session 10: Credit Portfolio Management
Session 11: The Role of the Committee regarding investments
Session 12: Current Issues in Investment Governance
Session 13: Assessing Investment Proposals
" It became clear that there is room for the Board to redefine its role and responsibilities as part of our brand value proposition. Excellent and thought provoking."Deputy Audit Committee Chair, Development Bank, Europe
Overview
A major concern of stakeholders has been the failure of many major international firms to adopt an integrated approach to risk management linking all risk areas including governance and compliance with strategy and performance management.
Poor standards of risk management including governance and compliance risk have led to extensive criticism of the sector and to catastrophic problems and failure of some of the largest and best-known institutions. In the aftermath of such failures, both market and regulatory expectations have increased significantly, increasing the responsibilities placed on senior management.
Developing a sound understanding of risk management best practice and comparing this with the approach adopted within your firm is a challenging but essential undertaking. There is a clear challenge of building consistent governance frameworks that also add value to a retail bank. This will be addressed on this course explaining the main issues and identifying the approaches to be adopted.
This course focusses on the role of the Board Credit, Investment and Governance Committee, considering the key roles that need to be addressed and concentrating on the challenges that are likely to be faced in practice.
"Very helpful ideas about the impact of the three lines model and how it impacts our corporate structure."Board Bank Non-Executive Director, Commercial Bank, New York
Who Should Attend
By the conclusion of this event delegates will have
- Gained a high level understanding of international corporate governance best practice
- Understanding the principles of Corporate Governance and its impact on the overall business performance
- Clarifying the role of the compared with that of the Executive Board members and senior management
- Understanding the potential cost of Corporate Governance failures – examples and lessons to be learnt
- Recognising the importance of stress testing
- Understanding the credit role and how it should be conducted
- Appreciating the key current challenges that are likely to be faced
- Understanding the committee role regarding investments and how to review due diligence
A working knowledge of the duties of a director and some knowledge of bank lending is assumed but if necessary the course will commence with a very brief refresher to deal with essential concepts.
Additional Course Information
What Does It Cover?
Introduction
- The role of the board and management
- The role of non-executive directors
- What makes a non-executive independent
- The value of independence on the board
- The Board Credit, Investment and Governance Committee
- Relationship to other committees
Group Discussion – Shared Stories: What constitutes your board governance ethos and culture?
Corporate Governance
- Why do we need Corporate Governance?
- Key features of Corporate Governance
- The challenge of corporate governance
- The changing expectations on directors
- What really matters to a Board
- The current risk universe – what is important?
- What really matters to other stakeholders?
- Implementing corporate governance within a firm – key lessons and issues
- What appears to work best?
- Current challenges
- Moving to more agile reporting
The 3 Lines Model and Corporate Governance
- What is the 3 lines model?
- How does that differ from the 3 lines of defence?
- What does this mean for corporate governance?
- Does this change the governance structure?
- What does this mean for a firm and reporting to the Board?
- Will this add value?
Key corporate governance Best Practice
- The relationship between corporate governance and risk management
- Current guidance and expectations
- Increasing emphasis on prevention of bribery and corruption
- Financial crime deterrence and tax transparency responsibilities
- Disclosure and transparency
Corporate Governance and Strategy
- The role of Strategy and Strategic Risk
- The challenges currently faced
- Dealing with change
- The mission and governance
- Developing strategy
- What are firms saying?
Independence, Remuneration and Conflicts of Interest
- What is a non-executive director?
- What are their responsibilities?
- Identifying and dealing with conflicts of interest
- Ethical dilemmas in practice
- Succession planning
- What is CSR?
- What are banks doing?
- The role of the governance body
- ESG and corporate governance
- Examples of statements
Credit Responsibilities and Lending Controls
- Credit Responsibilities
- Challenges at present
- Lending limits and delegations
- Sanctioning
- Sector and other controls
- Target market analysis
Loan Pricing & Required Return
- Risk/reward
- Secured/unsecured and the value of collateral
- Return on capital
- Liquidity
- Impact on the committee
Corporate Lending
- The role of the relationship manager
- The credit report
- The problems with statutory accounts
- Models and model risk
- Model validation and model overlays
- Manual intervention and models
- Credit due diligence in practice
- Changing capital rules and their impact
- Assumptions and concentrations
- What really matters
Credit Portfolio Management
- What is credit portfolio management?
- Why is it important?
- Concentration risk and its impact
- Stress testing and scenario modelling
- Credit risk and liquidity
- What really matters?
The Role of the Committee regarding investments
- Strategy and investments
- The role of the committee in relation to internal Investment
- The role of the committee in relation to external Investment
- The members of the committee and their skills
- The level of direct involvement of Investment committee members
- Relationship to other committees
- Assets and products within the domain of the committee
- Reporting to the Investment committee
Current Issues in Investment Governance
- The changing face of internal Investment
- Risk based internal Investment – the challenges and benefits
- BIS and globally changing requirements
- Changes in Investment committee roles and responsibilities
- The role of the Board and regulators
- Benchmarking and tracking
- Performance attribution
Assessing Investment Proposals
- Reviewing applications
- Appropriate metrics for measurement
- Reviewing due diligence
- Investment to future
- Identifying conflicts and weaknesses
- Real life examples – what goes wrong?
- Implementing and using indicators
- Reviewing performance
Discussion, Q&A and Summary
END
Learning Objectives
This highly interactive workshop-style programme is designed for members of the Board Credit, Investment and Governance Committee of a bank or lending institution.
Delegates who complete the course will receive a Certificate with equivalent CPD/CPE credits via email; and for those who require an assessment as a demonstration of competency via training a 20- multiple-choice questions and answers quiz, remotely invigilated with results report and 1 resit, is available at no additional charge when requested at time of reservation.
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.)
Registration
NEW Board Credit, Investment and Governance Committees – What Really Matters
Course Fee
Apply 10% discount code RISK10 by December 15, 2023 at check-out
Course Fee (per person):
GBP £3,995.00 (+ UK VAT when applicable)
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