Risk Management essentials

The risk management sector has been undergoing an unprecedented evolution as the result of the financial crisis that started in 2008. In particular, financial institutions and regulators alike have become more and more demanding as to what they expect from the risk management function in general and the risk manager in particular. The demands are becoming so important that it has become very hard to combine this role with another function within a bank or investment firm.

The above has been made even more visible and acute since the advent of the Eurozone’s Single Supervisory Mechanism (SSM), also known as ‘Banking Union’, where the regulatory and supervisory expectations are particularly high. The SSM may be more visible for so-called ‘significant banks’ but is also applicable to all Luxembourg-based banks regardless of size.

In this context, PwC’s Academy has thought that it would be useful to summarise in one place and in one course an overview of the different subjects and regulations applicable today and, especially, in 2016 and 2017. The key aspects are the likely revision to the expectations in terms in Internal Capital Adequacy Assessment Process (ICAAP) and the introduction of the Internal Liquidity Adequacy Assessment Process (ILAAP).

23 October 2020 (ENG) - Webinar format - 10am-12pm

11 December 2020 (ENG) - Webinar format - 10am-12pm

22 January 2021 (ENG) - 9am-1pm

18 March 2021 (ENG) - 9am-1pm

Price:
Classroom based: 650.00 €
Webinar: 300 €

Duration:
Classroom based: 4h
Webinar: 2h

Language: English

Number of participants: 15

Objectives

By the end of this training, the participants will be able to:

Describe the concepts underpinning banking union (SSM, SRM, BRRD, DGSD etc) and how these connect with the Supervisory Review & Evaluation Process (SREP);
Have a good understanding of the supervisors’ expectation in terms of structure and content of both ICAAP and ILAAP;
Identify the issues impacting the firm’s business and be in a position to take appropriate actions.

Content

The training programme has been divided under 4 separate topics:

Essentials of banking union

Brief overview of the various building blocks of banking union and how these impact banks.

Focus on the Supervisory Review & Evaluation Process (SREP)

The SREP is a highly formalised and regulated process that imposes how supervisors should assess banks in terms of business models, risk control framework, internal governance, capital, liquidity and funding.
This section will elaborate on what exactly is assessed and how banks can best prepare for the exercise

Internal Capital Adequacy Assessment Process (ICAAP)

Essentials of Pillar 2 as per CRD IV/CRR
Reminder of key features of Circular CSSF 07/301 on ICAAP
Deep dive on how such features are impacted by the SSM’s expectations and how these will lead to a likely revision of ICAAP expectations

Internal Liquidity Adequacy Assessment Process (ILAAP)

Brief reminder of the ILAAP’s ancestor: Circular CSSF 09/403
Focus on key ILAAP features: structure, contents, guidance based on SREP expectations
Lessons learned from The Netherlands where an ILAAP has been required of banks for a number of years.

Target audience

Chief Financial Officers (CFOs);
Risk Managers;
Personnel and executives working for the internal audit or compliance department;
Personnel and executives working for the accounting & reporting department;
Financial analysts;
Credit analysts;
Liquidity specialists.

Our lead experts

This training is coordinated by Jean-Philippe Maes, Partner (Regulatory Compliance Services).

Jean-Philippe has been providing governance and risk management services to a wide banking and PFS audience over the last 12 years. He is a Partner within PwC Luxembourg, where he leads the firm’s Banking and PFS Risk Advisory team. He chairs the Basel IV Taskforce and is the lead advisor for CRD IV/CRR topics. Jean-Philippe has coordinated assignments in banking and PFS risk management topics such as: stress testing, capital requirements and liquidity adequacy analysis, internal governance and operations, regulatory reporting and others. He is the holder of an MBA from Warwick Business School combined with the engineering background from previous studies.