Risk Management – Governance and Organisation for Banks

In its publication Corporate Governance Principles for Banks (2015), the Basel Committee on Banking Supervision underlined the importance of governance in risk management: "Effective corporate governance is critical to the proper functioning of the banking sector and the economy as a whole."

The objective of this course is to give participants a good understanding of corporate governance and organisation with regard to their impact on Risk Management within banks. The course covers various aspects of governance and organisation, such as Basel’s principles of risk and governance, risk appetite, the three lines of defence model and the importance of organisation charts.

• Understand the interaction between governance, organisation and risk.
• Apply the principles of risk and governance from the Basel Committee.
• Define a bank’s risk appetite.
• Apply the three lines of defence model.
• Formulate and apply processes, procedures and policies.

• Introduction
• Governance
  • Principles of risk and governance (BCBS)
    • Risk Management function
    • Risk identification, monitoring and control
    • Risk communication
• Defining an optimal governance for banks
• Players
• Risk Appetite
  • Definition
  • Implementation
  • Management
• Organisation
• Processes, procedures and policies
  • Processes
  • Procedures
  • Policies
• Three lines of defence
  • Business Lines
  • Risk Management
  • Audit
• Organisation charts
  • Interaction
  • Reporting lines
• Impact of governance and organisation on risk
• Future trends

This module is part of the Risk Management Certification. To obtain their certificate, candidates must complete 12 days of training in Risk Management and pass the exam for each course.