The Professional Diploma in Banking Risk Management Practices is a specialist risk management programme specifically designed for risk professionals (including compliance professionals) who are working in the banking industry.
The programme was designed in conjunction with risk management and compliance professionals working in banking and will equip participants with the necessary technical risk skills and risk knowledge as well as providing participants with a benchmark qualification that is recognised in the Irish banking industry.
The programme is designed to provide participants with a deep and practical understanding of key risks including inter alia:
Banking risk management frameworks
Conduct risk management frameworks
Funding and liquidity risk
Risk based pricing
It will also provide the tools to identify, measure and mitigate those risks to improve business performance.
The programme is relevant to individuals who are risk professionals and those who wish to develop a career in risk management including:
Holders of the Professional Certificate or Diploma in Compliance
Banking and financial institutions’ central functions, risk and compliance professionals including: Compliance, Operational risk, Internal audit, Credit review, Legal, Finance, Technology, Change management
Financial institutions’ frontline staff who wish to gain a deeper understanding of banking risk management practices.
A thorough understanding of the key practical and relevant operational risks facing banking professionals in Ireland today including inter alia: financial crime prevention/AML/CFT, KYC, external and internal fraud, information security, IT resilience, cybercrime, outsourcing, business continuity planning, data quality, data protection, impact on capital and other practical areas;
A deep and practical understanding of the requirements and responsibilities of operational risk and conduct risk management.
An understanding of regulatory capital and economic capital and the regulatory capital requirements for a bank including the different types of capital instruments.
An understanding of liquidity risk management and the role of asset and liability management
An understanding of the core principles relevant for effective credit risk management, encompassing credit risk management frameworks, credit risk measurement techniques, bad debt provisions.
An understanding of the risk-based pricing for credit products.
Global best practice tools for the identification, assessment, measurement and management of operational risks and conduct risks.
Knowledge and skills to capture, report and investigate operational risk events and conduct risk events, how to produce meaningful risk MI including Key Risk Indicator (KRI) data and trend analysis, and how to implement operational risk appetite and conduct risk appetite.
An understanding of how to manage an operational and conduct risk assessment programme and apply it in the workplace
Enhanced business judgement, critical analysis and problem solving skills.
If you hold an IOB designation or a designation managed by IOB, CPD hours may be awarded on successful completion of this programme.
Operational Risk Management Practices module is assessed by:
Continuous assessment - 10%
An end of trimester two-hour written exam - 90%
Banking Risk Framework, Culture and Conduct Risk module is assessed by:
An end of trimester two-hour written exam - 100%.
Introduction to Economic and Regulatory Capital Requirements, Credit Risk and Pricing module is assessed by:
Continuous assessment - 20%.
An end of trimester two-hour written exam - 80%.
Portfolio and Front Line Pricing for Risk, Funding and Liquidity Risk module is assessed by:
Continuous assessment - 30%
An end of trimester two-hour written exam - 70%.
Successful participants will be awarded the Professional Diploma in Banking Risk Management Practices by UCD.
This is a level 8 qualification on the NFQ and carries 25 ECTS.
Operational Risk Management Practices: €595
Banking Risk Management Framework, Culture and Conduct Risk: €495
Introduction to Economic and Regulatory Capital Requirements, Credit Risk and Pricing: €495
Portfolio and Front Line Pricing for Risk, Funding and Liquidity Risk: €495
Aisling O'Sullivan - Programme Manager
a) Individuals seeking admission to the Professional Diploma in Banking Risk Management Practices will have 3 years’ experience (full time) in a relevant banking role and completed the Professional Diploma in Financial Advice or equivalent 30 ECTS Level 7 programme.
b) Individuals who possess an honours degree (Min. Hons. 2.2, Level 8 NFQ).
c) Admission will also be considered from experienced professionals who do not meet the minimum admission requirements as set out above, who can demonstrate learning based on work and training experience e.g. Individuals employed in a Risk role with responsibility for decision-making.
You must be a current member of IOB, or become a member, to undertake this programme.
(NFQ Level 8, 10 ECTS)
Operational risk defined. The importance of operational risk and the Probability Risk and Impact SysteM (PRISM). The differences between operational risk and other types of risk. Recent failures in operational risk. Operational risk basics. Three lines of defence. Operational risk taxonomies. Operational risk management frameworks. Risk capacity. Risk appetite statements. Risk policies. Risk pricing and capital. Risk information, Key Risk Indicators (KRIs) reporting and KRI framework. Risk assessment. Risk management and action plans. Risk modelling. Insurance mitigation.
The practical workshop areas will include inter alia: Financial crime prevention. Anti–Money Laundering/Countering of Financing of Terrorism. Know Your Customer, Irish and UK. Anti- Corruption laws. External and internal fraud. Information security, IT resilience, cybercrime. Outsourcing. Business continuity planning. Data quality and other practical areas.
(NFQ Level 8, 5 ECTS) Definition of conduct risk: How does conduct risk transpire. Application to retail and wholesale markets. Conduct risk as defined by the FCA and what lies at its core i.e. seeking the best outcome for the customer. Drivers/causes of conduct risk. Constituents of conduct risk including behavioural economics. Conduct risk frameworks and its relationship with the overall banking risk framework. Conduct risk appetite statements. Conduct risk policies and common metrics for assessing conduct risk performance in an organisation. How conduct risk relates to operational risk. The difference between conduct risk and compliance. Conduct risk impacts on customers, on employees, the financial institution and on markets (positive/negative). How ethical behaviours and decisions can improve customer outcomes. Applying the theory to a number of real life Irish and UK examples using case studies. Risk governance. People, roles and responsibilities. The Board .The CRO. Wider reporting. Systems and documentation. Risk management process. Risk culture. Leadership and risk culture. The role of the risk management function in risk culture. The place of other staff in risk culture. Evaluating risk culture.
(NFQ Level 8, 5 ECTS)
Economic Capital. Regulatory Capital. The different types of capital instruments. CRD IV. Risk Weighted Assets. ICAAP. Risk and Return Methodologies. Customer Grading and Scoring. Principles of Credit Risk Management. Calculation of Impairment Provisions.
(NFQ Level 8, 5 ECTS)
Asset and Liability Management. The underlying risks inherent in a balance sheet, e.g. liquidity risk. The main pre-crisis practices in liquidity risk management that lead to unstable balance sheet structures. The impact of current regulatory developments on balance sheet structures. Pricing for Risk.