Consulting

Finance Best Practice
Training

Boards and Management are Expected to Know

Under Basel II, all material aspects of a bank’s credit risk rating and estimation processes must be approved by its governing body and senior management. They must possess a general understanding of the rating systems and a detailed comprehension of associated management reports.

This is just one example of regulators’ heightened expectations of those people who are in charge of banks. Boards of Directors and senior management teams are expected to have much more detailed technical knowledge than ever before.

Comments from regulators who have reviewed the readiness of banks for Basel II have included:

“There was in general a lack of breadth in the involvement of senior executives with only a limited number of executives involved in any detail. This is an aspect we see as integral to demonstrating the firm's embedding of the Basel principles."
 
“We also noted that whilst the senior management of firms had been involved in the early development of the their Basel plans, firms should ensure that appropriate senior management (and Board) training is undertaken so that senior management is in a position to understand and challenge the model process and reports.”

Following the financial crisis, regulators are also taking a much more hands on approach in terms of the appointment of non-executive Directors to bank boards, and there is a much greater emphasis on the understanding of complex subjects.

Training, therefore, at all levels of Financial Services Institutions has assumed a new and critical importance in the current climate.

Practitioner Led Training

Quadrant offers training to meet the requirements of the current environment to bankers and regulators of all seniorities. Examples of this include:

  • Basel II : pillars 1, 2 and 3, credit, market and operational risk
  • ICAAP : including stress testing and scenario analysis, and all relevant risk types
  • Liquidity Risk Management : with the plethora of new controls and reporting
  • Corporate Governance : it has never been more demanding to run a Financial Services Institution
  • Compliance Risk Management : regulators are determined to ensure that consumers get a fair deal, and are punishing banks which do not comply
  • Change Management : major change initiatives are likely to fail without the discipline of robust controls and standards.

Our training is delivered by former banking professionals, who are experienced in dealing with Board Directors and Senior Management and understand the pressures in the current climate.