Bank Risk Governance and Regulation

This course provides:

(1) The basic methods of risk analysis and decision making, including SWOT-Analysis, risk behavior, risk communication, hypothesis testing and the limitations for risk modeling.

(2) The evaluation of strength and weaknesses of the corporate sector for credit risk management: rating scheme, financial parameters, reasons for growth, analysis of the strategic options of a corporate, why corporates fail and go bust, corporate restructuring, credit risk and portfolio management.

(3) The characteristics of global financial markets, the impact of global players and reasons for increasing volatility. The course gives examples of financial market crises and their reasons and discusses the risks for financial stability within the next couple of years. It explains the six possible measures to stabilize financial markets and describes the major risk governance institutions and the implementation of the Banking Union in Europe.

(4) The course highlights macroeconomic challenges for the financial industry like globalization, global/environmental risks, population dynamics and the 4th industrial revolution (cyber-physical systems).

(5) Within the Corporate Governance Part are explained: the principle – agent conflict, goals and tools of Risk Governance, the Risk Management Organization of a Bank, the 3 lines of defense concept, the BIS Corp. Gov. Principles, the legal responsibilities of Bank Managers (Compliance Risk, Business Judgement Rule), the core elements of good risk governance and why Risk Committees could fail

Contact

Ludmila Ketterer

Senior Manager -
Degree & Corporate Programs
+49 69 798 33512
E-Mail

Learning objectives

Upon completion of this course, you will be able to understand the following concepts and their application in practice:

  • Philosophical quotes, definition of risk, typical risk types for the financial industry, frequency and belief type probabilities, the role of long options within the decision making process
  • The influence of risk behavior/awareness and motivation
  • The difficulties of risk communication
  • Systematization technics and the limitations of risk modeling
  • How to analyze the success of a corporate and the challenges of corporate restructuring
  • The special requirements and characteristics of financial institutions
  • The nature of financial crisis
  • The essentials of good and modern bank regulation, supervision and risk governance
  • The goals and the concept of the European Banking Union
  • The tools for micro- vs. macro-prudential Risk Management
  • The meaning and consequences of “globalization”
  • The major environmental global challenges of this century
  • How to analyze complex problems
  • Positive and negative effects of the 4th industrial revolution
  • Reasons for people to get connected and other industry trends
  • How to organize good risk management and governance in financial institutions
  • The challenges of compliance risk management
  • That management decisions  need to be compliant and have to fulfill the Business Judgment Rule(BJR)
  • Weaknesses in risk assessment and management evaluation
  • How to prepare and manage the communication process for crucial and risky decisions


Key concepts

  • Decision making theory
  • Corporate valuation
  • Bank regulation and supervision
  • Risk governance: modelling vs. expert knowledge, weaknesses in risk assessment and in management evaluation
  • The elements of the Business Judgment Rule
  • Instruments and parameters to regulate and supervise banks
  • Requirements for the target oriented communication between management and governance in financial institutions

Course format

This course is offered in the part-time Master in Finance program and may be attended on a “no credit” basis by individuals not enrolled in the program. Course participants are visitors who are not responsible for assignments and do not take an exam or earn academic credits. As the number of seats in the course is limited, we recommend to register online early.

Key Facts

Course materials
Course materials except books will be provided in electronic form.

Language
English

Course fee*
€ 950 (fee is exempt from VAT). Goethe Business School students and alumni receive a 20% discount off the regular fee.

Certificate of participation
A GBS certificate of participation is awarded upon completion of the course.

Venue
House of Finance, Goethe University, Theodor-W.-Adorno-Platz 3, 60323 Frankfurt

*Withdrawal and fee refund

In case the course withdrawal request is received two weeks prior to the start of classes, we will retain a withdrawal fee of EUR 50. In case the course withdrawal request is received less than two weeks prior to the start of classes, we will retain 50% of the payment made.

Faculty

Dipl.-Volkswirt Wolfgang Hartmann

Wolfgang Hartmann graduated from Goethe University Frankfurt as the best student in Economics. Mr. Hartmann lectures “Risk Governance” at the Frankfurt School for Finance & Management within the Executive Master Program for Risk Management and Regulation and has been research scholar at the University of North Texas, Denton, USA.

Wolfgang Hartmann is Honorary Chairman of the Frankfurt Institute for Risk Management and Regulation (FIRM); single Board Member of the state owned Austrian Resolution Company ABBAG, winding down Hypo Alpe Adria; Chairman of the Investment Committee of Rantum Capital; member of the Board and the Executive Committee of “Frankfurt Main Finance”, and Deputy Chairman of the Association of the Institute of Banking and Banking Law at the University of Cologne.

Course schedule - 2017

DateSessions
Friday, July 6, 2018

13:00-15:00

15:30-17:30
Saturday, July 14, 2018

09:00-11:00

11:30-13:30

Saturday, July 21, 2018

11:30-13:30

14:30-16:30

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Program Registration

Register for "Bank Risk Governance and Regulation"