Developing an effective ICAAP framework

Venue: Hong Kong

Location: Hong Kong, Hong Kong

Event Date/Time: Dec 04, 2009
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# Gain a comprehensive, practical understanding of the ICAAP
# Understand how the ICAAP fits in with risk and capital management, and the Basel II regulations
# Understand how to best use the more advanced techniques of economic capital and stress testing, and current approaches being introduced
# Appreciate the business benefits of producing an ICAAP, beyond achieving regulatory compliance
# Understand how best to structure necessary documentation, and what the regulator expects to see

This course is designed for anyone needing to understand the fundamentals of the Internal Capital Adequacy Assessment Process. It will give participants an understanding of the components required for an effective ICAAP, the best way to carry out within an organisation and what results the regulator is looking for.

An overview of risk and capital management will be given, explaining how ICAAP should fit alongside risk management practices and how it integrates with the Basel II capital regulations. The need to assess risks of all types that may be material to an institution, in addition to those specified in Basel Pillar 1, is critical. The course will look at areas such as concentration risk, interest rate risk and liquidity risk.

The course director will share industry best practice and regulatory views on preparation and adoption of ICAAP, including how to ensure integration with senior management and decision making, and how this can be demonstrated. A key outcome of ICAAP is preparation of documentation for the regulator. The best approaches to this, and descriptions of what must be included will be discussed.

The course will also look at some of the more advanced techniques being used alongside ICAAP for better risk and capital management. This includes the use of economic capital and how this can bring business benefit. The use of stress testing techniques has come under scrutiny following the recent economic events. The importance of stress testing, both for ICAAP and wider risk management, will be highlighted and the latest techniques in testing and scenario selection will be reviewed.