Basel II University

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The heart of Basel II regulations is around the amount of capital that financial institutions should put aside to safeguard against significant financial and operational risks that may arise from the course of doing business.

In practice, Basel II accomplishes this objective by asking banks to adopt a rigorous set of risk and capital management rules, guidelines and best practices designed to ensure that sufficient capital reserves are held to commensurate to the risks that the bank has exposure to through its investment and lending businesses.

Advocates of Basel II have argued that by requiring all financial institutions to maintain a minimum level of economic solvency and stability, the international financial system will be protected from the domino effect of collapse should one or more major banks fail.

More risk, more capital. If we lived in an ideal world, this simple principle would work well - Philipp Hildebrand, Vice-Chairman, Swiss National Bank

However, as banking crisis in the recent past have shown, risk management regulations may prove to be fruitless as risk exposures can be less than transparent without intelligent, rigorous enforcement by informed finance professionals. At the minimum, finance professionals involved in the management, supervision or audit of Basel II rules, guidelines and best practices should be able to:

• Fully comprehend Basel II requirements and background
• Specify data-set requirements for calculations involved in various Basel II approaches
• Perform both Standardized and IRB approach basic calculations
• Understand credit risk and operational risk management at an advanced level
• Identify specific issues to be addressed under supervisory review process (Pillar 2)
• Understand general considerations for disclosure requirements (Pillar 3)

The Finance 3.0 Basel II University program contains a library of 39 courses that deal comprehensively with the Basel II requirements per the revised “International Convergence of Capital Measurement and Capital Standards” framework. The 63 course module program ensures that all primary components, or pillars, i.e., minimum capital requirements, supervisory review process and market discipline, are covered in sufficient depth.

The 39 courses covered in the Finance 3.0 Basel II University program are:

• Basel II – An Overview
• Scope of Application
• Credit Risk – Standardized Approach
• Standardized Approach – Credit Risk Mitigation
• Simplified Standardized Approach
• IRB Approach – Overview
• IRB Approach – Rules for Exposures
• IRB Approach – Minimum Requirements
• Credit Risk – Securitization Framework
• Operation Risk Measurement Approaches
• Qualifying Criteria for Operational Risk
• Market Risk – Measurement Framework
• Market Risk – Standardized Measurement Approach
• Market Risk – Internal Models Approach
• Key Principles
• Specific Issues
• Supervisory Review Process for Securitization
• Market Discipline
• An Overview of IRB Systems for Corporate Credit
• Ratings for IRB Systems
• Quantification of IRB Systems – PD
• Quantification of IRB Systems – LGD
• Quantification of IRB Systems – EAD and Maturity
• Data Maintenance Framework
• Control and Oversight Mechanisms
• An Overview of IRB Systems for Retail Credit
• Retail Risk Segmentation Systems for IRB
• Quantification of IRB Systems – PD
• Quantification of IRB Systems – LGD
• Quantification of IRB Systems – EAD and Maturity
• Quantification – Special Cases
• Validation
• Data Maintenance Framework
• Control and Oversight Mechanisms
• Operational Risk – AMA and Corporate Governance
• Operational Risk Management Framework
• Elements of an AMA Framework
• Risk Quantification and Mitigation
• Data Maintenance and Testing
• Benchmarking Template
• Dislosures
• Global Best Practices
• Measurement Tools
• Regulations

Enrollment into the Finance 3.0 Basel II University program also provides you with access to a detailed collection of Basel II Benchmarking Data, Disclosures, Global Best Practices, Measurement Tools and Regulations.

$400 – 12 Month Program – Enroll Now