Risk
Combating Money Laundering and Terrorist Financing - Advanced
Most nations and their banking systems have rules and regulations in place to combat money laundering. Anti money laundering training is a vital part of this process. It is often mandatory for bankers.
Objectives:
This Program will help participants to:
· Be able to list the processes involved in Money Laundering
· Understand the implications and penalties for non-compliance with Anti-Money Laundering legislations
· Understand the measures undertaken by Kuwaiti banks to deter money laundering
· Regulations applicable to Kuwaiti banks - Mar 2002 Emiri Decree, June 2003 CEBK Resolution
Contents:
What is Money Laundering ?
- Different stages – placement , layering, integration
Different sources of illegal funds :
- Drugs, terrorism, vice, gambling, counterfeiting, kidnapping, extortion, fraud, tax evasion
- Scale of problem and prevention measures
Kuwait experience with AML:
- March 10 2002 Emiri decree in Kuwait criminalised money laundering, set up know your customer rules and mandatory AML training
- June 23 2003 CEBK resolution Anti-money laundering established KFIU – Kuwaiti Financial Inquiries Unit
Target Audience:
Every professional involved in the global financial services industry
Methods :
Lecture, slides, case studies, discussions & exercises
Language:
The program will be conducted in English
Duration:
18 hours, 3 days, Mornings & Afternoons
Operational Risk Management - AdvancedLearn how to transform the building blocks of your firm's operational risk management programs into a cohesive operational risk management strategy. This advanced course examines operational risk management in the financial services industry on two fronts: 1) current and emerging practices in the operational risk management discipline, and 2) the organizational, regulatory, and governance factors that affect how a financial institution addresses operational risk. Participants will build a solid conceptual foundation and apply this in practice through hands-on case studies and exercises.
Objectives:
This Program will help participants to:
- Gain a more strategic understanding of operational risk and the tools available to identify, measure, control, mitigate, and monitor it.
- Understand and articulate your institution’s operational risks and exposures, and learn how these fit into its overall risk picture.
- Recognize what is needed to deliver appropriate policies and programs to address the operational risks in your organization.
- Learn how to raise awareness and build collaboration with your management, business, and risk partners regarding management of operational risk.
- Understand the relationship between operational risk exposures and risk capital.
Contents:
1- A Fresh Look at Operational Risk
What is operational risk? How does it fit into a bank's overall risks?
In this session, we will look at how operational risk is defined and the role it plays in effective enterprise risk management.
Key outcome: A more strategic understanding of operational risk.
2- Regulatory Expectations
What is happening with Basel II? What are the Basel Sound Practices? What is Basel III? What is the Use Test? What is ICAAP? What do regulators really want?
Though the spotlight glared on credit risk during this past year, operational risk managers know the problem wasn't credit risk at all. Sloppy underwriting practices, unproven black-box models, and human greed slipped through the operational risk radar. In this session, we will explore the impact current regulatory discussions may have on regulation related to operational risk management and measurement. We will also review current U.S. regulation that affects operational risk.
Basel II has been implemented in many jurisdictions outside the United States. We will review implementation of the operational risk components of Basel II in other jurisdictions, including an overview of approaches taken by banks in those jurisdictions with respect to operational risk management and measurement.
Key outcome: An understanding of what regulators expect beyond a mere capital number with respect to operational risk.
3- The Operational Risk Management Framework
Frameworks, frameworks everywhere, but nary a guidepost to see (apologies to poet Samuel Taylor Coleridge). What is this operational risk management framework I keep hearing about?
In this session, we will discuss the concept of a framework as a set of principles, strategies, policies, and tools for managing and measuring operational risk within a financial institution. Participants will discuss the role of the operational risk management framework and learn what is needed to craft, formalize, and implement a framework to support effective operational risk management. Working with a framework outline in breakout groups, participants will develop a framework for a fictional bank.
In subsequent sessions, the group will explore and discuss the different aspects of the framework in more depth.
Key outcome: A more strategic understanding of the established and developing tools that can be used to manage and measure operational risk, including the linkages between these tools.
4- Components of the Operational Risk Management Framework
Participants will explore the key practices that support effective management of operational risk:
- Understanding the bank's operational risks and exposures through risk and control identification and assessment, analysis of internal event data, review of external event data, and scenario analysis.
- Monitoring those risks and related drivers using key risk indicators.
- Providing senior management with actionable information on the operational risk profile and exposure of the bank.
- Protecting the bank with adequate operational risk loss backstops such as insurance and operational risk capital.
Operational risk practice has evolved considerably in the past ten years. Despite this, definitive right answers and best practices have yet to emerge in the still young discipline of operational risk management. Participants will learn about the approaches and methods currently being used by other institutions in the industry. The discussion on operational risk capital and measurement of operational risk will explore models, inputs, and challenges in a non-quantitative way that is suitable for all audiences. Several case studies will be used to illustrate the key concepts. Participants will work with the case studies in breakout sessions to help build hands-on knowledge that they can apply to operational risk management practices in their own institutions.
Key outcome: A practical understanding of the practices and tools used to strengthen and measure operational risk and to protect the bank in the event of an operational risk incident
5- Risk Governance and Oversight
In this critical and broad-ranging topic, we will discuss the responsibilities and accountabilities of the different operational risk players in a bank. Participants will examine questions such as: Who owns the risk? What is tone at the top and why does it matter? What impact does bank culture have on risk-taking and risk management? This session will draw on what was learned in earlier sessions to help participants explore and debate organizational aspects of managing operational risk, the key conditions for successful implementation of operational risk management programs, and the effective management of operational risk.
Key outcome: An enhanced understanding of the intangible aspects of operational risk management--culture, communication, oversight--and how to more effectively deal with the challenges of creating a risk-aware organization from top to bottom.
6- Emerging Trends and Thoughts
Operational risk management continues to evolve. This session will look at some of the recent developments and ideas emerging in the industry.
Target Audience:
Operations, Risk, Compliance and Audit Departments Staff.
Methods:
Lecture, slides, case studies, discussions & exercises
Language:
The program will be conducted in English
Duration:
24 hours, 4 days, Mornings & Afternoons
Risk Management is a significant function at the core of every banking activity. Regulators have placed increasing emphasis on risk management and the scope and importance of risk management has been further expanded under the Basel II regulations. Banks having advanced risk management and measurement tools get rewarded by way of a lower capital charge, better ratings and eventually lower funding costs thereby enhancing profitability and shareholder value
OBJECTIVES
This Program will help participants to:
- Balance the Risk Reward Relationship
- Understand the risks in the Banking Industry
- Appreciate of the Risk Management function in banks
- Manage, measure, monitor and control material risks in Banking
- Utilize measurement tools for quantifying risks
- Be familiar with the Basel II Guidelines and its impact on the Industry
CONTENTS
- Scope and importance of risk management in banks
- Risk management structure in banks
- Key risks faced by banks:
a. Credit risk
b. Market risk
c. Operational risk
d. Strategic risk
e. Reputation risk
- Measurement tools to quantify risks
Risk Framework to monitor and control all material risks in banks under Basel II context
METHODS
Lectures, discussions, exercises and cases
TARGET AUDIENCE
Bankers interested in pursuing a career in Risk Management
LANGUAGE
The Program will be presented in English
DURATION:
The Program will be conducted for 36 hours (Twice weekly). Sessions will be held from 5.00pm – 8.00 pm plus 2 hours for the final exam
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