Basel ii Compliance Professionals Association
(BCPA)the largest
association of Basel ii Professionals in the world
Course Title
Basel II – Pillar 2:
Certified Pillar 2 Expert
(CP2E)
Prep Course
The Supervisory Review & Evaluation Process (SREP) and
the Internal
Capital Adequacy Assessment Process (ICAAP)
Objectives:This
course has been designed
to provide with the knowledge and skills needed to understand and
and work for the
Second Pillar of Basel II.The course
provides with the skills needed to pass the Certified Pillar 2
Expert (CP2E) exam.
Target Audience:
This course is intended for managers
and professionals from Banks, Financial Institutions,
Multinational Corporations, Supervisory Agencies who need to
understand and speak the specialized language of Basel ii
compliance, which has become the common language throughout their
organization.
This course is highly recommended
for:
Managers and
Professionals involved in Basel ii (decision making and
implementation)
Risk and Compliance
Officers
Legal
Counsels
Strategic
Planners
Analysts
Auditors
Management
Consultants
Course Synopsis:
Second Pillar: The two tier process
The internal assessment - the Internal Capital Adequacy Assessment
Process (ICAAP)
The evaluation of the Assessment - the Supervisory Review and
Evaluation Process (SREP)
Risks that are not adequately covered by Pillar 1
Enhancing the link between risk profile, risk management systems
and capital
The Internal Capital Adequacy Assessment Process (ICAAP)
The firm’s opinion and evidence of its internal capital adequacy
assessment
Structure of ICAAP
Corporate governance elements
The obligation to conduct an ICAAP
Processes, strategies and systems used in ICAAP
Documenting the ICAAP
Review of the ICAAP
The proportionality principle
Assumptions, methodology, coverage and outcome of the bank’s ICAAP
Group/parent ICAAPs
The framework from the Committee of European Banking Supervisors (CEBS)
- a model around the world
The 11 ICAAP High Level Principles
Templates, Examples and Case Studies
The Supervisory Review and Evaluation Process (SREP)
The supervisor’s review and evaluation of the firm’s risk profile
and the adequacy and reliability of the firm’s ICAAP
Is there sufficient capital to support all material risks?
Principles & Key Components of the SREP
The supervisory review of the group/parent ICAAPs
The Supervisory Review and Evaluation Process (SREP) as part of
the wider Supervisory Review Process
The framework from the Committee of European Banking Supervisors (CEBS)
The 11 SREP High Level Principles
The Basel ii / Pillar ii challenges
A. Technical
B. Organisational
C. Regulatory
Home and host supervisors
Synchronising Pillar 2 work across borders
Communicating home and hosts’ Pillar 2 assessments
Pillar 2 in the EU - The Capital Requirements Directive
Pillar 2 in the USA
Pillar 2 in countries around the world. Interesting differences
Regulatory Arbitrage: Using Pillar 2 as an advantage for the
country
Using Pillar 2 as an advantage for the financial firm
Basel ii Amendment (July 2009)
Bank for International Settlements, Enhancements to the Basel II
framework
