Risk Based Supervision Program

for insurance and banking supervisors

Monday, August 26, 2019 - Friday, August 30, 2019

RISK-BASED SUPERVISION

 

Objectives

Risk-based supervision (RBS) is a supervisory approach that has either been implemented, or is in the process of being implemented, by many supervisory authorities. In addition, risk-based supervision concepts are embedded in core principles developed by international standard-setting bodies (such as the BCBS, IOSCO, IOPS and IAIS) and are part of the IMF and World Bank’s Financial Sector Assessment Programs (FSAPs) of countries.

 

In today’s fast moving and interconnected world, along with carrying out on-site and off-site activities at financial institutions, supervisors need to be forward-looking, and develop plans for intervening early, if a material problem surfaces at one or more of their domestic systemically important banks. This program on risk-based supervision offers the opportunity to learn and share experiences on this subject. The Program is designed to provide participants with tools to assist them in understanding risk-based supervision methodologies. It also aims to strengthen the capacity of supervisory officials to implement risk-based supervision in their financial sector.

 

The program will be conducted based on a comprehensive case study on the application of risk-based supervision more useful for the participants.

 

Main Topics to Be Covered

  • Key concepts, principles and general approach for an effective RBS framework.
  • How to assess business models of financial groups/entities.
  • How to identify the significant activities in a financial institution and, in turn, rate the inherent risks for these activities.
  • How to assess and rate the performance of board, senior management and the independent oversight functions such as internal audit, risk management and compliance, which oversee a financial institution.

 

The Expected Outcome

Upon completion of the 5-day course participants will better understand:

  • Key principles in developing a risk based supervisory framework in a twin peak model.
  • How to comprehensively assess business models and identify significant activities in a financial institution.
  • The dynamics of a business environment and how to focus on the important risks
  • Why risk identification is not enough – it is what you do to confront identified problems head on.
  • The importance of early intervention and how this can lead to a stronger supervisory authority, enhanced public confidence, and greater financial stability.

Methodology

  • Toronto Centre uses a highly interactive approach teaching through the use of case studies, lectures, simulations (for crisis preparation programs only) and exercises; and participants have to work in table groups on group activities on issues raised in the case studies and lectures.

 

Medium of Instruction: The program will be conducted in English.

Target Audience: The program is designed for middle-to-senior level officials from central banks and supervisory agencies involved in the supervision of financial institutions, financial surveillance and managing financial stability.


Program Materials

There are no resources available for this program at the moment.

Program Venue

Hotel Protea Pretoria

Program Contact

Madina Ibragimova
mibragimova@torontocentre.org