Banks And Bank Risks

Banks play a critical role in the national economies of most countries including South Africa and sound banking systems are a crucial element of domestic and global financial stability.

An inherent element of banking is risk taking, in fact it is said that risk is the business of banks. However excessive, poorly managed risk can lead to losses and endanger the safety of depositors’ funds.

The workshop will explain the role of banks in the economy and the functions performed by them as well as describe the main risks that banks face namely capital risk, credit risk, market risk, liquidity risk, operational risk and strategic/business risk. The workshop will analyse how these risks are incurred and best practice ways of managing them.

Outline:

• The role and function of banks
• Banks as managers of risk
• Best practice risk management framework
  • Risk philosophy
  • Risk appetite
  • Risk culture
  • Risk policies and principles
  • Risk management governance structure
  • Roles, responsibilities and authority
  • Staff and other resources
• Nature of, implications of and methods of controlling:
  • Capital risk
  • Credit risk
  • Market risk
  • Liquidity risk
  • Operational risk
  • Strategic/business risk (including reputation risk)
  • Country and political risk
• Interrelationship between risks
• Market discipline and disclosure of risks
• Supervision of risks