Executive Programme on Risk Management and Supervision 30 September 04 October 2013 Including cultural visit to the Oktoberfest in Munich EDUCATION MADE IN GERMANY
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Welcome to Frankfurt. 3
Content 5 Introduction 6 Welcome to a New Level of Education 7 Risk Management and Supervision 8 The Approach of Frankfurt School s Executive Education 9 Your Trainers 10 Apply now! 11 Your Contact
Introduction Pressing global financial and economic crises, deregulation and globalization of financial services, the growing sophistication of financial technology all these trends and developments boost the complexity entailed in banking. As a consequence, risk management has top priority on the agendas of decision makers in financial and nonfinancial institutions, of policy makers and individual citizens. Risk is entailed in banking. It is inherent in the delivery of financial services. Financial institutions must adequately manage risk to achieve their financial and social objectives and to provide value to their clients. Poor risk management practices may lead to huge financial losses and in extreme cases force financial institutions out of business. It is therefore important for financial institutions to develop a systematic risk management approach. Frankfurt School of Finance & Management addresses risk management in its broad range of activities. With one of the biggest faculties and the largest group of finance professors in Germany, we are proud that our Master of Risk Management and Regulation and the Master of Finance with its risk concentration received the premium accreditation seal of FIBAA. Furthermore, our Master of Finance is the only German Master of Finance programme listed in the Financial Times ranking. Serving on the board of the Frankfurt Institute for Risk Management and Regulation (FIRM), I am heavily involved in risk related debates concerning the definition of new industry standards in risk management and regulation. Many faculty members conduct research projects together with FIRM and other industry partners. Within our International Advisory Services our staff is managing numerous risk management projects in developing and emerging countries all around the globe turning up-to-date research into international best practice. Through our Executive Education programmes you get the best from all of it benefit from the outstanding research results in combination with field experiences from all over the world to gain from the perfect combination of theory and practice! Prof. Dr. Udo Steffens President Frankfurt School of Finance & Management Introduction 5
Welcome to a New Level of Education Today s executives face major challenges in extremely diversified and dynamic markets, growing global competition and increasingly self-reliant customers and suppliers. In such a complex business environment, the organizations that survive are those which have well-developed strategies and highly skilled managers. Executive Education programmes can help executives sharpen their leadership and management skills, give them the opportunity to learn from best practices, and to establish a peer network with some of the most successful leaders and companies from around the globe. Frankfurt School has 50 years of experience in educating executives and employees. We offer numerous Executive Education programmes and other customized trainings, designed to ensure that executives are able to meet the requirements of today s demanding market. Frankfurt School s executive course on Risk Management and Supervision is a comprehensive qualification for executives with a special emphasis on the particular requirements of emerging and developing financial markets. It gives you the tools to measure risks and devise appropriate risk-taking and mitigation strategies. Our risk management experts provide you with an in-depth understanding of methodologies and the practical implementation of credit and liquidity risk management with a strong focus on regulatory environment (Basel III) and stress testing processes. You will learn how to cope with the challenges of the financial sector in and post the crisis and support your institution in delivering financial services in a rapidly evolving environment. 6 Welcome to a new level of education
Risk Management and Supervision Agenda Introduction Risk management approach by banks and recent changes Identification of risk management challenges and learnings from the crisis Risk governance Credit risk Short overview: Elements of credit risk PD, LGD and EAD Measuring credit risk now and then Assessing risks of credit portfolios Measuring credit risks on a systemic basis Market and operational risk Market risk measurement methodologies Advantages and disadvantages of the different methodologies Operational risk measurement and management methodologies Operational risk governance and control Reporting of operational risks Liquidity risk Sources of liquidity risk Modelling liquidity risk Liquidity risk management Regulatory environment and Basel III Reasons for Basel III Overview of key aspects of Basel III Implementation challenges of Basel III Outlook ongoing regulatory discussions Stress testing Approaches to stress testing and sensitivity testing Defining scenarios Calculating impacts Mitigating systemic risks Case study: stress testing Risk management through the economic cycle Integrated risk measures across risk types enterprise wide risk measurement and management Holistic planning for bank risk management Practical implementation and pitfalls Defining risk appetite and setting objectives Data environment and data issues Problems with risk models Assumptions and their risk Risk Reporting Good and bad reporting Detailed information and audience interaction Reporting practices Risk measurement validation Model validation Back testing Integrated risk management and validation Benchmarks Summary: Current challenges for banks in and post crisis Risk management in the crisis Risk management and strategic planning Risk Management and Supervision 7
The Approach of Frankfurt School s Executive Education As one of Germany s leading business schools, Frankfurt School is a powerful platform for research, best-practise management and teaching. Our Executive Education portfolio includes open enrolment, in-house and customized programmes. Furthermore, we organize conferences and lectures. We develop and publish our own study materials and offer various distance learning programmes. First-class teaching, small study groups, personal contact with professors and faculty staff and a campus equipped with a state-of-the-art infrastructure with these high-quality resources Frankfurt School turns Bachelor and Master degree courses, specialist workshops and Executive Education programmes into powerful tools for building professional success. Frankfurt School is about partnership, innovation, integration, entrepreneurship, dynamic and open discourse, rather than closed, assembly-line thinking. Frankfurt School is about fresh approaches to significant issues. Focus on practical orientation This executive training on Risk Management and Supervision provides knowledge with a clear hands-on approach that is tailored to address the global realities of today. Our trainers have extensive practical experience in the field of risk management and supervision, assuring that real life examples from different regions and continents are discussed in the classroom. Integrated knowledge The interactive sessions will be a mixture of lectures, discussions and case studies. Each training session is carefully designed and led by our highly qualified trainers. Beyond the training Throughout the training, a special social programme will be offered giving you not only the perfect networking opportunity outside the classroom but also the chance to experience the various facets of Frankfurt. We will show you around and bring the history of Frankfurt closer to you; you will experience the cosmopolitan and the historical Frankfurt by seeing and tasting. 8 The approach of Frankfurt Schools Executive Education
Your Trainers Prof. Dr. Martin Hellmich Prof. Dr. Martin Hellmich is professor for risk management at Frankfurt School. After graduating in Mathematics and Business Mathematics and obtaining his Ph.D., he worked first as a risk controller with Allianz Asset Management GmbH, then in fixed income portfolio management with Cominvest. From 2002 to 2004, Dr. Hellmich worked for LBBW in the field of Trading & Sales where he was responsible for the structuring and sale of credit spread products. In 2004 he moved from LBBW to Barclays Capital, ultimately advancing to a position on the European structuring team, where he was responsible for advising institutional clients in the fields of strategic employment of credit derivatives and strategic asset allocation with special reference to Basel II. In 2007, Dr. Hellmich moved to join DekaBank as head of the Liquid Credits division. His core duties here included the optimization of the investment and risk management process for the bank s own credit portfolio which he was also responsible for managing. From 2009 to 2011, Dr. Hellmich was Managing Director of Cantor Fitzgerald in London. In September 2011 he joined Mainfirst Bank, where he was responsible for fixed income business in Germany and Austria. Dr. Dietrich Matthes Dr. Dietrich Matthes is partner and co-founder of Quantic Risk Solutions since 2011 a boutique firm focussing on developing new frontiers in risk management. After his studies of Physics and Economics in Erlangen and London (Imperial College), he did his Ph.D. in Quantum Field Theory in New York, Erlangen and Tokyo (Komaba). He worked in risk management consulting for Oliver Wyman until 2006 and supported major banks in Europe, the US, the Middle East and Asia/Pacific in their risk modelling and management approaches. This work spanned both standard Basel II bespoke internal risk model development work and risk management approaches for banks with turnaround situations even before the financial crisis. After that, he was Chief Risk Officer of Hauck & Aufhäuser before becoming partner for risk management consulting with KDB. He then joined Roland Berger Strategy Consultants as partner and head of Financial Services consulting for the Middle East. In this role, he led the consulting for all banks in the Middle East next to acting as the risk management expert for multinational banks in other geographies. Specifically, he was one of the content development leaders for the stress testing of the Spanish Banking System in 2012. Your trainers 9
Apply now! Tuition and accommodation expenses The total fee for the executive education course on Risk Management and Supervision is EUR 4,300. The course fee includes all training materials and full-board accommodation in single rooms for the time of training. Handouts, documentation, and background literature will be assembled in a comprehensive participant handbook, which will also be provided on USB device by the end of the training. A colourful social programme as well as industry site visits will accompany the training. You have the opportunity to benefit from our early bird registration discount of 10 % when registering before 30 June 2013. Training venue The training will take place at Frankfurt School s campus from 30 September 04 October 2013. Participants will be accommodated in a high-class hotel within walking distance of Frankfurt School. The programme finishes with a daytrip to the Oktoberfest in Munich on 04 October 2013. Travel costs and entrance included in the programme fee. Language The language of instruction will be English. No translation will be provided. Target Group This programme is aimed at executives of banks and financial institutions focusing on Risk Management or Supervision. Application The application deadline for the course is 16 August 2013. Please note that we do select appli cations on a first-come, first-served basis. The number of participants is limited to 25. You can apply online at: www.frankfurt-school.de/exed-riskmanagement 10 Apply now!
Your Contact Whatever assistance or information you require, we would be delighted to help. Frankfurt School Executive Education Office Margarita Djurkov Tel: +49 (0)69 154008-235 Fax +49 (0)69 154008-4235 exed@fs.de www.frankfurt-school.de/exed Disclaimer: The contents of this brochure are current at the time of going to press. All information published in this brochure is intended merely to provide a general overview of the programme: Frankfurt School of Finance & Management reserves the right to modify the curriculum, the schedule or any parts thereof. For the updates, please contact the International Office (IAS) Frankfurt School of Finance & Management. Your Contact 11
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