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Basel IV – Credit Risk

– Basel IV–Credit Risk: Changing Regulatory Landscape

The course is presented by Mark Dougherty, CPA (Chartered Professional Accountant), CMA (Certified Management Accountant). He is a top performing and internationally experienced Risk Professional with Chief Risk Officer (CRO)/Head of Risk expertise. 

Background – Basel IV 
Basel IV is now part of the regular vernacular. Basel IV is not a single regulatory framework, but, rather a collection of changing international banking standards. In fact, the Basel Committee views these reforms as simply completing the Basel III Accord and contests the use of the unapproved term ‘Basel IV’. The Basel Committee itself calls them simply "finalised reforms" and the UK Government has called them "Basel 3.1". Critics of the reform, in particular those from the banking industry, argue that Basel IV will most likely require a significant increase in capital and should be treated as a distinct round of reforms being introduced by the Bank for International Settlements (BIS) and its Basel Committee on Banking Supervision (BCBS).

Course Outline
The Webinar includes a number of very interesting topics including:  
  • History of Basel – Basel I, Basel II, Basel III and now Basel IV
  • Revisions to Standardised Methodology for Credit Risk (SA–CR)
  • Focus on CCR - Standardised Approach for Counterparty Credit Risk (SA-CCR)
  • Credit Valuation Adjustment (CVA)
  • Basel IV–Credit Risk - Market Discipline / Disclosure (Pillar 3)
  • Basel IV - Implementation Timeline, and Output Floor
  • Basel IV – Regulatory views, Implementation Challenges and the Potential Impacts of Basel IV on Credit Risk Capital
  • Other Related Topics   

Basel IV – Implementation Timeline
On 27 March, 2020, the Basel Committee on Banking Supervision (BCBS).announced the deferral of Basel IV (regular vernacular) to increase operational capacity of the banks and supervisors to respond to the impact of the Coronavirus disease (Covid-19) on the global banking system. The implementation date has been deferred by one year to 1 January 2023.  
While 2023 may appear to be a long way away, financial services firms need to recognise that this is the most comprehensive transformation package in the history of the Basel regulations and extensive preparatory work will be required in areas such as: 
  • Capital Management and Optimisation
  • Business and Strategy
  • Portfolio Composition and Product Structure  
  • Legal Entity Structure
  • Capital Requirements and Adequacy 
  • Risk and Capital Models
  • Data and IT, and Operations  
  • Reporting
  • Governance and Controls  ​
IaS is a global provider of internal audit, risk consulting, data analytics, accounting, financial advisory, enterprise risk management, AML, compliance and related services. IaS provides advisory services globally to Banks, Asset Managers, Insurance Cos, Pension Funds, Hedge Funds, and other corporations.   
 - https://www.idealadvisoryservices.com/
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​
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