Key Benefits
- Prepare, populate, and complete an ICAAP under the regulations at a level appropriate for your business
- Create, update, and proportionately apply ICAAP/ILAAP to meet PRA expectations without overcomplicating the process
- Strengthen your risk and capital planning, including ensuring enough capital and liquidity are available to support the risks management chooses to take
Do You Need to Attend This Course?
This ICAAP Workshop is a must-know for:
Senior and top managers seeking to gain a better understanding of their responsibilities for ICAAP Regulation, Modelling & Asset Management
Compliance & Risk Officers who are charged with creating and updating the ICAAP
Department Heads, Team Leaders and Supervisors
Any professionals with an interest or whose roles and responsibilities involve the ICAAP in part or whole
Before taking this ICAAP Workshop, you should have some familiarity with financial services and principles of risk and capital management.
Technical Content
Part One
Session 1: The Essence of Risk Management
What is an ICAAP?
What is an ILAAP?
Why do we need an ICAAP, and why are there regulations?
Risk Appetite set by the board
The strategic vision: set by the board
Using risk appetite and strategy as the route map, senior management compiles the ICAAP risk management tool to confirm that the Board’s vision is within the capacity of the business
ILAAP guidelines: created to confirm that sufficient liquidity is always maintained
Why the board must oversee, validate, approve and ensure the ICAAP and ILAAP are deployed effectively, especially the ICAAP modelling methods used
The finished ICAAP & ILAAP are presented to the PRA, who do not “approve” it but have the right to review and challenge
Session 2: The Basel III & CRD IV Framework - Overview
The Regulations - Basel III Overview
Going Concern Capital Tier 1
Gone Concern Capital Tier 2
ICAAP & ILAAP Basel III further requirements – overview
CAR, Leverage Ratio, and Capital Buffers
The concept of risk-weighted assets and its impact on ICAAP Asset Management
LCR & NSF – two critical liquidity measures in the ILAAP requirements
ICAAP Workshop Discussion/Case Study: Looking at Pillar 1 (The “Key”) Risks in more detail
Session 3: Internal Capital Adequacy Assessment Process
The key ICAAP principles
Identifying risks and allocating risk capital
Pillar One & Pillar Two risks
Challenge and independent review
Capital buffers – optional and mandatory
Regulatory versus economic capital
Arriving at the agreed CAR
Session 4: The Detail
Suggested Internal Capital Adequacy Assessment Process framework, content, and layout
The ICAAP risk assessment process from preparation to Board approval
Challenge and independent review
Internal Capital Adequacy Assessment Process ‘Hot Buttons’ and the regulatory feedback
Discussion/Case Study: Pillar 1 Additions, when are they needed?
Part Two
Session 5: Risk Components
Pillar 1 Risks: Credit
ICAAP Operational Risk
Market
Liquidity
Calculating the key risks
ICAAP Pillar 2 risks – 2a process
Revised Standardised Approaches - delayed in the UK & USA until 01.01.2027
Putting it all together
Session 6: Liquidity Risk - Internal Liquidity Adequacy Assessment Process (ILAAP Training)
What is an ILAAP?
Prime Liquid Assets
What is the ILAAP meant to achieve?
Asset Liability Management (ALM)
Yield curves
Discussion/Case Study: The impact of LCR & NSF in practice
Session 7: ESG
What is ESG?
The current regulatory position
The future depends on US Policy – President Trump is not a supporter
Actions needed now
Assessing the bank
Assessing clients
“Greenwashing”
“Greenium”
Session 8: Stress Testing / Scenario Analysis
Definition
Doing these well and properly
BIS – Sound Principles
Key concerns
ICAAP stress testing scenarios single high-impact events – ‘Shockwaves’
Discussion/Case Study: The Importance of Stress Testing & Scenario Modelling on both Pillar 1 & Pillar 2 Risks
Session 9: Moving Forward
Revised standardised risk modelling that will change ICAAP modelling for larger institutions, and is designed to simplify the Modelling process: The changes will take us back to basics
These changes have been postponed to 01.01.2027 in the UK & USA but parallel running is in place
City overhaul and the likely regulatory focus
The impact of ESG
The impact of US foreign policy
Final thoughts
Session 10: ICAAP Course Wrap-Up and Final Discussion
Training Objectives
Redcliffe Training's ICAAP course will cover the following:
The significance and purpose of the ICAAP and ILAAP, their critical role in risk management and how regulation impacts the firm
Understand how it can be adopted proportionately - so that simpler and less complex businesses don’t need a “War & Peace” version
What is required and what the PRA expects from both ILAAP & ICAAP submissions to meet their definition of “proportionate”
To appreciate that it is not only a document, but a process
To understand that the Internal Capital Adequacy Assessment Process must be constantly fine-tuned and updated if it is to perform its function
How to prepare, populate and complete an ICAAP under the regulations and pitched at a level appropriate for your business
To understand it is a 3-5-year forward-looking risk document that compels top management to plan for the risks they are prepared to take. To ensure that enough capital and, through the ILAAP, liquidity is available to support those risks
The challenges faced at the implementation and updating stage, as well as the ICAAP Modelling stage
Why regulators consider the Internal Capital Adequacy Assessment Process to be a crucial risk management tool
The impact of ESG & the imminent Post-Brexit financial reforms
Training Course Summary
Redcliffe Training's ICAAP Workshop is a comprehensive training designed to enhance your understanding and practical application of the Internal Capital Adequacy Assessment Process.
The ICAAP is a crucial regulatory framework that financial institutions must adhere to. This course provides in-depth insights, practical tools, and hands-on exercises to master the complexities of the ICAAP and capital planning.
Our workshop-style format features the use of real-life case studies. Each session will conclude with a discussion of the principles covered, their relevance, and their application to the ICAAP method and the associated plan.
Your trainer
Course Trainer · 40 yrs experience
- Credit Risk Management Courses
This ICAAP training expert has had a long, varied and “fast track” career. With Lloyds Bank, he earned a very senior management position in the bank’s private banking and wealth management division from an early age. He was then headhunted to join a merchant bank at the main board director level to head both the private bank and the group risk management function. He now has over 40 years of experience in managing risk in the UK banking and financial services sector.
Since retiring, he has been a freelance risk management training consultant and is currently an external Master Trainer at both HSBC and Bank of China. Here, he has delivered major projects on a wide range of topics. At HSBC, he helped design their global flagship Risk Management Programme for senior middle managers and has delivered this globally for the past 5 years. He has also created and delivered training to a vast range of clients, from global giants to small firms and partnerships, which includes ICAAP training courses. He is an accomplished global trainer and has delivered extensive programmes in the UK, USA, South America, Europe, Africa, Asia, and the Middle East.
He is an adaptive, hands-on, and very sought-after facilitator. Feedback from delegates is always excellent, and he is comfortable training at any level of seniority and experience. This includes training “black belts” and novices.
Besides his risk management specialism, his expertise includes but is not limited to Risk Management, Trade Finance, Regulatory Compliance, FCC & AML, and all aspects of Corporate, Private & Retail Banking. He is also an experienced soft skills trainer and has completed many “train the trainer” assignments.
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