Overview

This course will provide an overview of the various types of risk that can occur. This course will detail credit, market, operational, strategic, interest rate, liquidity, and reputational risk. After completing this program, the learner will understand how to:

• Differentiate between the types of risk that can occur.
• Identify, address, and avoid risk by implementing various procedures and preventative measures.
• Understand the bank products, services, and individuals which are most likely to pose these risks.

Contents

T1. Credit Risk: This topic will provide a broad analysis of credit risk, including information on how to identify it by looking at financial institution products, services, and financial instruments which are most likely to pose these risks.

T2. Market Risk: This topic will provide a comprehensive look at market risk, the risk of losses in the trading portfolio of a financial institution, and will include information on identifying market risk by understanding the factors involving other types of risk, such as interest rate, FX, and equity position risk.

T3. Operational Risk: This topic will provide the learner with an overview of operational risk, the risk of loss resulting from inadequate or failed internal processes, people, and systems, and will include information on identifying operational risks and determining the causes and probably impact of those risks on the bank.

T4. Strategic Risk: This topic will introduce the learner to strategic risk, the risk of losses in earnings or capital arising from the financial institutions business decisions or improper implementation of those decisions, and will include information on identifying strategic risks and what causes them.

T5. Interest Rate Risk: This topic will explore interest rate risk, the risk of losses or adverse impact on the financial institutions margins, earnings, and capital caused by the financial institutions exposure to adverse movements in interest rates, and will include information on identifying interest rate risk.

T6. Liquidity Risk: This topic will discuss liquidity risk, a natural effect of the financial services industry, and generally the result of many other risks, and will provide information on identifying liquidity risks by following several indicators for identification of liquidity in portfolios, such as frequency of the treasury accessing the money market for funds.

T7. Reputational Risk: This topic will provide details concerning reputational risk, which refers to the risk of losses due to negative publicity or public opinion regarding the financial institutions business practices, financial health, conduct, or employees.

Please note that any legal and compliance references in this course will pertain to US legislation.