Skip to content

Internal Capital Adequacy Assessment Process (ICAAP)

European Institute of Management and Finance

Summary

Price
£110 inc VAT
Or £36.67/mo. for 3 months...
Study method
Online
Duration
4 hours · Self-paced
Qualification
No formal qualification
Certificates
  • Certificate of completion - Free

Overview

This course will show you how this is accomplished by considering the process required to properly develop and undertake the ICAAP along with the associated stress tests needed to establish its parameters. Particular focus is given to understanding how stress tests are formed and articulated in ways suitable for a bank's board and its regulators, along with extensive discussion of the New Rules in relation to the old.

Description

Under Pillar 2 of the second Basel accord, a bank must have an Internal Capital Adequacy Assessment Process (ICAAP) in place. ICAAP consists of internal procedures and systems that ensure that the bank will possess adequate capital resources in the long term to cover all of its material risks. It involves the determination of economic capital as opposed to regulatory capital and is a process that is run in parallel to the regulatory capital requirement determination process.

Economic capital is the capital required to cover all risks that are estimated using internal risk models of the bank. ICAAP should be an integral part of the bank’s processes and must be embedded within the organization. Senior management and the Board of Directors (BOD) should be supportive and fully engaged in the process.curves for interest rate derivatives.

Summary of course content

  • The intended role of the ICAAP and its place in Basel II
  • The amendments to Basel II (New Basel Rules), with focus on those related to the ICAAP
  • How initial capital adequacy can be determined and how capital can be allocated in accordance with the bank's risk profile
  • How to structure and draft the ICAAP
  • How to consider group-wide methodologies for risk measurement
  • How to stress test various risk measures
  • How to formulate and articulate stress tests
  • Developing ICAAP documentation for presentation to boards, shareholders and regulators

Who is this course for?

The course is aimed primarily at banking professionals and individuals responsible for risk management within banks who need to review or refresh their understanding of Capital Adequacy regulations for work, professional review, audit or personal development.

Requirements

The candidate should have some familiarity with debt, equity & FX markets and risk management frameworks.

Questions and answers

Currently there are no Q&As for this course. Be the first to ask a question.

Ask a question

Certificates

Certificate of completion

Digital certificate - Included

Reviews

2.3
Course rating
100%
Service
20%
Content
20%
Value

Legal information

This course is advertised on reed.co.uk by the Course Provider, whose terms and conditions apply. Purchases are made directly from the Course Provider, and as such, content and materials are supplied by the Course Provider directly. Reed is acting as agent and not reseller in relation to this course. Reed's only responsibility is to facilitate your payment for the course. It is your responsibility to review and agree to the Course Provider's terms and conditions and satisfy yourself as to the suitability of the course you intend to purchase. Reed will not have any responsibility for the content of the course and/or associated materials.

FAQs

Study method describes the format in which the course will be delivered. At Reed Courses, courses are delivered in a number of ways, including online courses, where the course content can be accessed online remotely, and classroom courses, where courses are delivered in person at a classroom venue.

CPD stands for Continuing Professional Development. If you work in certain professions or for certain companies, your employer may require you to complete a number of CPD hours or points, per year. You can find a range of CPD courses on Reed Courses, many of which can be completed online.

A regulated qualification is delivered by a learning institution which is regulated by a government body. In England, the government body which regulates courses is Ofqual. Ofqual regulated qualifications sit on the Regulated Qualifications Framework (RQF), which can help students understand how different qualifications in different fields compare to each other. The framework also helps students to understand what qualifications they need to progress towards a higher learning goal, such as a university degree or equivalent higher education award.

An endorsed course is a skills based course which has been checked over and approved by an independent awarding body. Endorsed courses are not regulated so do not result in a qualification - however, the student can usually purchase a certificate showing the awarding body's logo if they wish. Certain awarding bodies - such as Quality Licence Scheme and TQUK - have developed endorsement schemes as a way to help students select the best skills based courses for them.
View all
Related searches: Online courses