Basel III and Basel IV: Regulatory Capital and Risk Management

The global banking and financial services industry continues to experience significant regulatory changes aimed at strengthening financial stability, improving risk management practices and enhancing the resilience of financial institutions. The Basel III framework, developed by the Basel Committee on Banking Supervision (BCBS), introduced comprehensive regulatory reforms designed to ensure that banks maintain adequate capital, manage financial risks effectively and remain resilient during periods of economic and financial uncertainty.

This programme provides an in-depth understanding of the Basel III regulatory framework and the final Basel III reforms, commonly referred to in the banking industry as Basel IV. It examines the evolving requirements for regulatory capital, capital adequacy, risk-weighted assets, liquidity management, leverage ratios and enhanced risk management practices.

Participants will explore the fundamental principles of regulatory capital management, including Common Equity Tier 1 (CET1), Additional Tier 1 (AT1) and Tier 2 capital, as well as the importance of maintaining appropriate capital buffers to absorb unexpected financial losses.

The programme will also examine the revised approaches to measuring credit risk, market risk and operational risk, with particular attention to the standardised approaches, internal risk models and the output floor introduced under the final Basel III reforms.

Furthermore, participants will gain insights into liquidity risk management, stress testing, supervisory review processes, regulatory reporting and disclosure requirements. The training will highlight how financial institutions can strengthen their internal risk management frameworks, improve regulatory compliance and enhance their ability to withstand economic shocks.

Through practical discussions, industry examples, case studies and interactive sessions, participants will develop the knowledge and practical skills required to interpret Basel regulatory requirements and apply effective capital and risk management strategies within their organisations.

The programme will also consider the relevance of Basel standards to the Nigerian financial services industry, including regulatory expectations and the importance of aligning institutional risk management practices with applicable Central Bank of Nigeria (CBN) requirements.

Note: Basel IV is an informal industry term commonly used to describe the final Basel III reforms; it is not a separate Basel accord.

Benefits Of Attending

By the end of this training programme, participants will be able to:

1. Understand Basel Regulatory Frameworks: Develop a comprehensive understanding of Basel III and the final Basel III reforms commonly referred to as Basel IV.
2. Improve Capital Adequacy Management: Understand regulatory capital requirements and how to maintain adequate capital levels to support institutional stability.
3. Strengthen Risk Management Practices: Acquire practical knowledge of identifying, assessing, monitoring and mitigating credit, market and operational risks.
4. Understand Risk-Weighted Assets (RWAs): Learn how risk-weighted assets are calculated and how they influence regulatory capital requirements.
5. Enhance Liquidity Risk Management: Understand the application of the Liquidity Coverage Ratio (LCR) and Net Stable Funding Ratio (NSFR).
6. Improve Regulatory Compliance: Gain knowledge of regulatory expectations, supervisory requirements, reporting obligations and disclosure standards.
7. Understand Capital Buffers: Learn the importance of capital conservation buffers, countercyclical capital buffers and other regulatory capital requirements.
8. Develop Effective Stress-Testing Skills: Understand how to conduct financial stress tests and evaluate the potential impact of economic shocks on institutional capital and liquidity positions.
9. Strengthen Financial Risk Assessment: Develop the ability to evaluate financial exposures, identify vulnerabilities and implement appropriate risk mitigation measures.
10. Improve Strategic Decision-Making: Understand how regulatory capital and risk management considerations influence lending decisions, investment strategies and overall financial performance.
11. Enhance Institutional Resilience: Develop strategies for strengthening financial institutions against economic instability, unexpected losses and financial market disruptions.
12. Build Professional Competence: Improve technical knowledge and professional capabilities in banking regulation, financial risk management and regulatory capital planning.

Who Should Attend?

This programme is designed for professionals working in the banking, financial services, regulatory and corporate sectors who are involved in financial management, risk assessment, regulatory compliance and institutional governance.

It will be particularly beneficial to:

1. Managing Directors and Chief Executive Officers of banks and financial institutions.
2. Chief Risk Officers (CROs) and Risk Management Professionals.
3. Risk Analysts and Risk Management Officers.
4. Banking and Financial Services Professionals.
5. Finance Directors and Chief Financial Officers (CFOs).
6. Credit Risk Managers and Credit Analysts.
7. Treasury Managers and Treasury Officers.
8. Compliance Officers and Regulatory Affairs Professionals.
9. Internal Auditors and External Auditors.
10. Financial Controllers and Accountants.
11. Banking Supervisors and Financial Regulators.
12. Investment and Portfolio Managers.
13. Asset and Liability Management (ALM) Professionals.
14. Financial Analysts and Banking Consultants.
15. Operational Risk Managers.
16. Corporate Governance Professionals.
17. Microfinance Bank Executives and Managers.
18. Fintech Executives and Financial Technology Professionals.
19. Professionals working in Central Banks and Other Regulatory Institutions.
20. Consultants, Academics and Researchers in Banking, Finance and Risk Management.

Course Booking

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