Risk Management Training Programs

The Fundamentals of Basel IV

Understand the challenges of Basel IV and its impact on banking risk management: capital requirements, revision of credit risk calculation, adjustments to operational risk, capital floor (output floor) and implications for the strategic management of financial institutions. This module enables you to acquire a clear and structured view of the new prudential rules and their effects on risk professions.

IN-PERSON OR REMOTE CLASS

Duration

2 days

Additional activity

Remote

2,550 € VAT excluded

VAT exemption according to article 261-4-4° of the French Tax Code

Reference

FOQF-255

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(*) As a training organization, Finance Tutoring benefits from a VAT exemption under Article 261-4-4° of the French General Tax Code (CGI).

Course Description

The Fundamentals of Basel IV

2-day intensive training (14 hours) - Regulatory approach and practical applications

The Fundamentals of Basel IV training enables you to gain operational mastery of the new regulatory requirements and their impact on banking risk management, with a particular focus on counterparty risk and trading activities.


◉ Regulatory Context

In response to evolving international standards, this training addresses the critical challenges facing financial institutions:

  • Transition from Basel III to Basel IV
  • New capital requirements (SA-CCR, FRTB)
  • Impacts on valuation and counterparty risk

Curriculum

1. Regulatory Framework

  • Evolution from Basel III to Basel IV
  • New capital requirements
  • Implementation timeline

2. Counterparty Risk

  • SA-CCR (Standardised Approach)
  • Advanced EAD calculation
  • CVA management

3. Trading Book (FRTB)

  • Capital requirements
  • Internal models vs standardized approaches
  • Practical application cases

Training Objectives

  • Master the key developments of Basel IV
  • Apply SA-CCR and FRTB methods
  • Calculate capital requirements
  • Optimize counterparty risk management
  • Anticipate operational impacts
  • Integrate new CVA standards

Target Audience

Practical Benefits by Profession

◉ Risk Managers

Master the impacts of Basel IV on risk management and optimize your compliance processes.

  • Integration of new SA-CCR and FRTB requirements
  • Development of counterparty risk mitigation strategies
  • Improvement of regulatory reporting

◉ Derivatives Traders

Understand the impact of Basel IV on trading activities and optimize your strategies.

  • Application of new FRTB requirements
  • Optimized counterparty risk management
  • Analysis of impacts on derivatives valuation

◉ Compliance Officers

Ensure your institution's regulatory compliance with the new Basel IV standards.

  • Implementation of adapted internal control processes
  • Assessment of regulatory risks related to Basel IV
  • Interpretation and application of new requirements

◉ Quantitative Analysts

Develop advanced risk models for implementing Basel IV.

  • Modeling of SA-CCR and FRTB requirements
  • Validation of counterparty risk models
  • Quantitative analysis of capital requirement impacts

◉ Regulatory Auditors

Ensure internal processes comply with the new Basel IV standards.

  • Assessment of compliance with Basel IV requirements
  • Identification of risks related to internal processes
  • Recommendations for improving control processes

◉ Training available in-person and remotely ◉ Educational materials provided ◉ Training certificate

FAQ - Basel IV Training

1. What is Basel IV and why is it important? +

Basel IV is a set of regulatory reforms aimed at strengthening banks' capital requirements, particularly regarding counterparty risk and trading activities. It is crucial for ensuring financial stability.

2. What are the prerequisites for this training? +

Basic knowledge of banking risks and previous regulations (Basel III) is recommended but not mandatory. Key concepts will be explained in detail.

3. What types of risks are covered in the training? +

The training primarily covers counterparty risk (SA-CCR) and risks related to trading activities (FRTB), which are the main focuses of Basel IV.

4. How will this training help me in my role? +

It will enable you to understand and apply the new Basel IV requirements, optimize your risk management processes, and ensure your institution's compliance.

Training Program

Fundamentals of Basel IV

I. Introduction to Basel IV Fundamentals

  • Regulatory evolution: From Basel III to Basel IV
  • Main objectives: financial stability, improved risk management, stronger capital base
  • Specific impacts for counterparty desks

II. Key Measures of Counterparty Risk under Basel IV

  • Exposure at Default (EAD): Advanced calculation methods
  • Standardized Approach for Counterparty Credit Risk (SA-CCR)
  • Expected Positive Exposure (EPE) and Potential Future Exposure (PFE)

Case Study:

Calculating EAD of a derivatives portfolio under SA-CCR

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