Basel III, Risk Assessment and Stress Testing

This advanced DIXONTECH course explores the principles and applications of Basel III, focusing on risk assessment, capital planning, and stress testing frameworks used by leading financial institutions. Delegates will gain hands-on expertise in identifying, measuring, and mitigating risks under Basel III guidelines, ensuring compliance with BCBS, EBA, and IFRS 9 standards. The course blends theory with real-world case studies from global banking systems.

TRAINING TOPICS

• Basel Accords: Evolution from Basel I to Basel III
• Risk-Based Capital Requirements
• Credit, Market, and Operational Risk Frameworks
• Internal Capital Adequacy Assessment Process (ICAAP)
• Stress Testing Principles and Methodologies
• Liquidity Coverage Ratio (LCR) and NSFR
• Leverage Ratio and Capital Buffers
• Model Risk Management and Validation
• Supervisory Review and Regulatory Expectations
• Basel IV Developments and Future Directions

BY THE END OF THIS TRAINING COURSE, DELEGATES WILL BE ABLE TO:

Acquire expert understanding of Basel III compliance, risk modeling, and stress testing for enhanced financial resilience.

• Apply Basel III risk measurement frameworks
• Conduct stress testing and scenario design
• Calculate capital adequacy and buffers
• Evaluate credit, market, and operational risks
• Implement ICAAP and risk-based governance
• Interpret regulatory reporting and requirements
• Strengthen risk culture and board oversight

TRAINING IS TAILORED TO

Professionals in banking, finance, and regulation responsible for risk assessment, capital planning, and supervisory reporting.

• Risk Management Officers
• Basel and Regulatory Compliance Specialists
• Bank Supervisors and Central Bank Professionals
• Treasury and Capital Planning Managers
• Financial Analysts and Model Validators
• Chief Risk Officers (CROs) and CFOs
• Internal and External Auditors

TRAINING METHODOLOGY

DIXONTECH combines interactive lectures, real-life case studies, stress testing simulations, and Basel-compliant calculation exercises. Participants will apply international risk standards to model different scenarios and perform quantitative and qualitative assessments aligned with supervisory frameworks.

DAY 1

BASEL III FRAMEWORK AND GLOBAL REGULATORY EVOLUTION

• Overview of Basel I, II, and III frameworks
• Objectives and regulatory reforms in Basel III
• Pillars of Basel III: Minimum capital, review, and disclosure
• Global financial crisis and lessons learned
• Comparison between Basel II and Basel III reforms
• Role of the Basel Committee and national regulators
• Implementation timelines and jurisdictional differences
• Relationship between Basel III and IFRS 9

DAY 2

CAPITAL STRUCTURE AND RISK-WEIGHTED ASSETS (RWA)

• Regulatory capital structure and components
• Tier 1 and Tier 2 capital definitions
• Common Equity Tier 1 (CET1) importance
• Determining risk-weighted assets (RWA)
• Standardized vs Internal Ratings-Based (IRB) approaches
• Credit risk mitigation techniques and models
• Capital conservation and countercyclical buffers
• Practical RWA calculation exercises

DAY 3

RISK ASSESSMENT AND ICAAP IMPLEMENTATION

• Overview of the ICAAP process and objectives
• Integration of capital and risk management
• Evaluating credit, market, and operational risks
• Scenario analysis and reverse stress testing
• Internal control and governance requirements
• Risk appetite frameworks and board oversight
• Supervisory Review and Evaluation Process (SREP)
• Linking ICAAP to corporate strategy and budgets

DAY 4

STRESS TESTING FRAMEWORKS AND PRACTICAL APPLICATIONS

• Principles and objectives of stress testing
• Designing macroeconomic and idiosyncratic scenarios
• Quantitative modeling and risk factor sensitivity
• Liquidity and funding stress testing methodologies
• Using stress tests in capital and liquidity planning
• Integrating stress tests with ICAAP and ILAAP
• Stress testing disclosure and regulatory requirements
• Real-world case studies from global banks

DAY 5

BASEL III REPORTING, SUPERVISORY REVIEW AND FUTURE OUTLOOK

• Pillar 3 disclosure and transparency standards
• Reporting templates and data aggregation principles
• Regulatory technology (RegTech) for Basel compliance
• Basel IV updates: Output floors and revised RWA
• Model risk governance and validation practices
• EBA and BCBS stress testing frameworks
• Future of prudential regulation and digital risk
• Building sustainable capital adequacy systems