Smart About Risk  
Internal Rating Based

Internal Rating Based (IRB) approach

The seminar Internal Rating Based (IRB) approach is organized as an open seminar for employees from different institutions and also as an in-house seminar organized for employees of clients with tailor made requirements.

Objectives of the seminar

Attendees of the seminar will learn how to calculate the capital requirement for credit risk through the Internal Rating Based (IRB) approach and how to implement the IRB approach in order to meet the imposed quantitative and but also qualitative requirements. The seminar is based on current the valid wording of the banking regulations and mainly on practical experience gained from obtained in implementing the IRB approach in banks in the CEE.

For whom it is intended

The seminar is designed for risk and project managers responsible for the implementation of the IRB approach. 


Seminar Content

  1. Pillar 1: Minimum Capital Requirements
    1. Calculation of capital requirements and capital adequacy
    2. Credit Risk: Standardized Approach (only brief overview)
    3. Credit Risk: Internal Rating-Based Approach (IRB)
    4. Internal rating system - essential part of IRB approach
    5. IRB implementation
    6. Support from parent bank
    7. Corporate governance
    8. Reporting
  2. Pillar 2: Supervisory Review Process and Internal Capital Adequacy Assessment Proces (ICAAP)
    1. Importance of supervisory review
    2. Principles for supervisory review
    3. Specific supervisory issues
    4. Definition of economic capital
    5. Why analyze economic capital?
    6. Relationship between economic and regulatory capital
    7. Relationship of economic capital and Pillar 2
    8. Economic capital and ICAAP process
    9. Approaches to risk classification and development of model of economic capital
  3. Pillar 3: Market Discipline
    1. General rules
    2. Disclosure requirements
  4. Planned and Expected Changes to Regulations
    1. Basel Committee approach
    2. EU regulation (CRD I. - CRD IV.)  
Currently no open seminar is organized. If you are interested in this topic please contact us and we will be delighted to prepare an in-house seminar for you.