Enterprise Risk Management Advanced Professional Development Program

October 1-5, 2018 • Ronald Reagan Building and International Trade Center • Washington, DC

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A partnership between the American Bankers Association and the University of Maryland Robert H. Smith School of Business


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The Enterprise Risk Management Advanced Professional Development Program is a comprehensive, five-day curriculum designed to foster in-depth learning through expert instruction, team exercises, active learning modules and case studies. Limited in class size, the hands-on program will deliver the insights you need to identify, monitor, measure and control for risk across the enterprise.

​(Program Subject to Change)


Module 1 – Elements of Effective Enterprise Risk Management
Learning Objectives:

  • Understand what ERM encompasses and who in the organization is responsible for overseeing its processes
  • Articulate why ERM is important for the firm
  • Explain the various types of risks within banking
  • How to manage risks holistically
  • Learn how to balance qualitative and quantitative aspects of risk management

Module 2 – Principles of Risk Governance
Learning Objectives:

  • Establish the expectations for risk governance across the organization
  • Learn why establishing a risk appetite statement is important and what goes into putting it together
  • Articulate roles and responsibilities among the business, risk management and audit organizations in the context of the “three lines of defense” framework
  • Understand the importance of establishing compensation programs that align incentives to balancing risk and return

Module 3 – Emerging Risks in Banking:
Learning Objectives:

  • Articulate major risks to the banking sector and relate them to your particular institution
  • Describe how these risks are likely to affect the banking sector in general
  • Be able to describe potential strategies for addressing these risks for your firm

Module 4 – Strategic Risk Management
Learning Objectives:

  • What is strategic risk management and why it is important to the organization, board and management team
  • What goes into building a strategic risk management framework
  • Articulate important strategic risks facing the bank and how they are incorporated into board and executive committee strategy sessions


Module 5 – Liquidity Risk

Learning Objectives:

  • Provide an overview of liquidity risk and its importance to banks
  • Survey methods for evaluating liquidity risk including development of a static maturity ladder, among others
  • Learn how to project cash shortfalls and surpluses across the balance sheet
  • Learn the importance of contingency liquidity planning and scenario analysis
  • Introduce the mechanics of the Liquidity Coverage Ratio and Net Stable Founding Ratio and how to implement them

Module 6 – Interest Rate Risk Principles:
Learning Objectives:

  • Learn what interest rate risk is and how banks are exposed to this risk
  • Understand what key metrics are used to assess interest rate risk including duration measures and their limitations
  • Introduce the concept of portfolio immunization and why it is important to banks in managing interest rate risk

Module 7a &b– Stress Testing (Track 1 and Track 2)
Learning Objectives:

  • Understanding the importance of stress testing in assessing financial strength of your bank
  • Describe various approaches to stress testing
  • Survey data and models used in conducting stress tests
  • Provide an overview of regulatory stress test efforts including CCAR and DFAST and how they can be adapted to your organization

Module 8 – Cyber Risk
Learning Objectives:

  • Learn about different types of cyber threa5ts affecting banks
  • Understand what strategies exist for mitigating cyber risk
  • What are the essential ingredients for developing a robust cyber risk management process


Module 9 – Model Risk
Learning Objectives:

  • Understand why model risk management is critical to the organization
  • Learn what good model governance looks like
  • Understand the importance of data quality in developing analytic models
  • Survey the basics of model validation and what to look out for in evaluating model performance
  • Learn what goes into the model assessment and monitoring process after a model has been deployed
  • Be able to understand the feedback loop between models and business results

Module 10 – Enterprise Performance Measurement & Objectives
Learning Objectives:

  • Describe the desirable characteristics of key metrics that can be used in expressing risk at an enterprise level
  • Explain what value-at-risk is and how it can be used to quantify risk tolerance
  • Understand the importance of establishing a risk data warehouse
  • Lay the foundation for a robust risk monitoring and reporting framework that provides the right information to the right party at the right time

Module 11 – Developments in Regulatory & Economic Capital
Learning Objectives:

  • Learn about the latest issues affecting regulatory capital requirements from the Basel Committee and regulatory agencies
  • Understand what economic capital is, how it differs from regulatory capital and how it can be used in the capital allocation process
  • Review the latest techniques and methods for implementing effective regulatory and economic capital determination processes

Module 12a– Integrating Macroeconomic Outlooks into Risk Analyses (Track 1)
Learning Objectives:

  • Learn how integrating macroeconomic factors into your risk management processes can improve your ability to identify, measure and manage your risk
  • Understand how specific macroeconomic factors drive risk outcomes and where they can link to important processes in your organization
  • Identify potential sources of macroeconomic projections from regulatory and industry data sources

Module 12b– Hedging Interest Rate Risk (Track 2)
Learning Objectives:

  • Understand the importance of hedging a portfolio from interest rate risk
  • Learn how financial instruments such as futures and options contracts can be used to hedge interest rate risk
  • Be able to describe how key strategies such as portfolio immunization fit into the interest rate risk management process


Module 13 – Consumer Credit Risk:
Learning Objectives:

  • Survey best practices in establishing sound credit policy and how compensating factors can be used in setting policy
  • Learn how to develop a delegation of authority process in approving credits
  • Understand what risk layering is and how it arises and can be addressed
  • Learn how to set up a robust exception management process
  • Understand the basic techniques used for assessing credit risk
  • Learn about the mechanics of collections and default management processes and loss mitigation strategies

Module 14 – Operational Risk
Learning Objectives:

  • Learn what operational risk is and where it can show up in the organization
  • Review standard approaches for assessing operational risk including risk-controlled self-assessments
  • Understand the vendor management process and what is needed to ensure your organization is assessing vendors appropriately   
  • Learn basic techniques for quantifying operational risk as well as gain an understanding of data limitations, methods and alternative sources of data for measuring operational risk exposure

Module 15 – Counterparty Credit
Learning Objectives:

  • Describe what counterparty risk exposure is and how it arises
  • Understand the importance of evaluating the performance of counterparties
  • Explore various methodologies for assessing counterparty risk exposure
  • Learn how to mitigate counterparty risk exposure

Module 16 – Commercial Credit Risk
Learning Objectives:

  • Understand what elements are entailed in the process of commercial C&I and CRE loan evaluation including obligor and facility rating development
  • Describe the loan review process and how it is used to manage commercial credit performance dynamically
  • Review the essential features of loan syndication including what to look out for in these arrangements


Module 17a– Leveraging Data and Analytics to Manage Risk (Track 1)

Learning Objectives:   

  • Understand the importance of data and analytics to informing risk management decisions
  • Learn what to look out for in developing risk data warehouses, how to manage data quality issues and ensure the ongoing integrity of risk performance data
  • Provide a survey of best practices in the use of analytics in the risk management process

Module 17b –Market Risk Management (Track 2)
Learning Objectives:

  • Learn how market risk affects bank portfolios
  • Understand how to use different measures of price sensitivity by asset class to assess market risk
  • Learn how to use VaR techniques for quantifying market risk exposure
  • Describe what position limits are and how they can be used to manage market risk exposure

Module 18a – Managing Concentration Risk (Track 1)
Learning Objectives:

  • Learn how to measure and report portfolio concentrations to management and the board
  • Understand the linkages between concentration and credit exposure
  • Describe how to develop a concentration risk policy for your firm leveraging various  concentration risk metrics

Module 18b – Hedging Market Risk (Track 2)
Learning Objectives:

  • Learn the basics of futures and options valuation and payoffs
  • Understand how delta hedging can be used to manage risk, what its limitations are and how they can be addressed
  • Survey various hedge strategies used to manage market and interest rate risk

Module 19  & 20 – Group Exercise
Learning Objectives:

  • Apply what you have learned in the program to a real world risk management exercise
  • Sharpen your skills at identifying, measuring and managing multiple risks under simulated conditions
  • Improve your ability to communicate, negotiate and garner support for your risk decisions in a team environment

Program Questions? Please contact Sheryl Brannon.


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