Risk Management for Banks
Banking business is in most cases risk management. Banks have to make profits for competitive survival. Their day to day activity is nothing other than management of various risks associated with their businesses which include credit risk, liquidity risk, interest rate risk, and foreign exchange risk.It is along this background that the Bank of Tanzania Training Institute has organised a five (5) days course on Risk Management for Banks
The programme is designed to equip course participants with the necessary knowledge and skills that will enable them manage various inherent risks in their Institutions.
WHAT YOU WILL LEARN
The course covers the following modules:
- Risk concept: An Overview
- Credit Risk:
- What constitute Credit Risk?
- The four different components of Lending function that are risk exposed.
- Credit Policy, Credit culture
- Hempel and Simonson (1999) model of monitoring Credit Risk indicators
- Diversification Strategy as a Credit Risk Management Process
- Basel II, model for Risk Management
- Interest Rate Risk
- Interest Rate Risk defined
- Bank Balance Sheet mix
- Rate Sensitive Assets (RSA) and Rate Sensitive Liabilities (RSL)
- Effects on rising and falling of market Interest Rates
- Methods of Interest Rate Risk Management
- Refinancing Risk and reinvestment Risk
- Liquidity Risk
- What it all means
- Different ways that lead to Bank Liquidity Risk
- Consequencies of Liquidity Risk
- Liquidity Risk Management Process
- Foreign Exchange Risk
- Foreign Exchange defined
- Features of Foreign Exchange Markets
- Forex Risk Management Framework
- Market (or trading) Risk and Credit Philosophy
- Traditional ways to monitor Credit Risk
- What constitute market risk?
- Conditions that influence/ increase market risk
- Important indicators of market risk in banking business
- Foreign currency sovereign Credit Ratings highlights
- Operational Risk
- Issues of Operational Risk
- Operational Risk event types
- Off-Balance Sheet Risk
- Aspects of OBS Risk
- Caution with OBS trading
- Capital Risk and Solvency Risk
- What they mean
- Interelationship with other Risks
- Basel II Framework for Risk Management for Banks
- The Three Pillars
- Framework for Risk measurement
WHO ARE TO ATTENDSenior and Middle level Officers in Commercial Banks and Other Financial Institutions.
One (1) Week: 5th – 9th March 2012 - DSM
One (1) Week: 23rd – 27th July 2012 – DSM.
Bank of Tanzania Training Institute
To effectively facilitate the development of Central Banking knowledge and skills commensurate with the Bank of Tanzania objectives.
Grow into a superior and dynamic Training Institution of excellence that promotes effectiveness of the role of the Central Banking Functions.