MALTA INTERNATIONAL TRAINING CENTRE
Risk Management in
Financial Services
3rd November 2015 – 21st June 2016
AL SERVICE OPERATIONS AND COMPLIANCE
Malta International Training Centre
Suite 3 Level 1, TG Complex, Brewery Street, Mriehel BKR 3000
e-mail : info@mitcentre.com
website : www.mitcentre.com
Telephone (00356) 21230831, 21233931
Fax (00356) 21244638
Vat Reg no 1064-7207 - Company no C5663 – NCFHE Licence no 113
MITC is licensed by The National Commission for Further and Higher Education as a Further and Higher Education Institution, is a
member of the MFSA Education Consultative Council and Board Member of the European Certification Body EFICERT
Objectives
The RISK MANAGEMENT IN FINANCIAL SERVICES programme will strengthen the participants’ knowledge
in Financial Services Risk Management, providing the right qualification in the pursuance of a successful
career in Malta’s financial services industry.
It is an important tool for people who
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are already working in the financial services sector
intend to take up a career within this environment, complimenting their acquired specialised studies
in various other disciplines
are engaged in the functions and operations of Risk Management
The programme will provide participants a solid grounding in risk measurement and its application. The
skills gained during this programme will equip participants to perform effectively in insurance
companies, insurance management companies, banks, asset managers, audit firms and regulators as
well as provide them with the foundations required to follow further studies in Risk Management.
Course Organisers
Malta International Training Centre
Intended Participants
The course is intended for the following categories of prospective participants:
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Employees in the financial services sector who wish to build upon their ‘on the job’ experience
Graduates or professional qualification holders who are seeking to apply their expertise in financial
services particularly in Risk Management
Other practitioners wishing to add value to their expertise
Members of risk Management committees in financial services
Employees reporting to Risk Management committees/ engaged in Risk Management operations
Entry Requirements
Holders of a financial services qualification at level 3 or higher or any other qualification deemed
equivalent by the selection committee appointed by the MITC and/or those holding at least 2 years
experience in the field / related field of risk Management.
A C.V. detailing qualification/experience will be required together with the application.
Duration
The course consists of 140 contact hours, 48 sessions of 3 hours duration held twice a week. Another 350
hours of self study is expected.
Assessment
3 hour written examination:
Section A: Short Questions
Section B: Essay Questions
The pass mark is set at 55%.
Certification and Recognition
A certificate will be issued by the Malta International Training Centre. Possession of such an Award will
be taken into positive consideration by the MFSA when determining levels of competence of staff
employed by institutions licensed to operate within the financial services sector.
Level within the National and European Qualifications Framework
The Malta Qualifications Council deems this CPD Award of 19 credits to be at Level 4 on the Malta
Qualifications Framework (MQF) and on the European Qualifications Framework (EQF) for Lifelong
Learning. The programme also qualifies for CPE/CPD credits by established Institutes including the Malta
Institute of Accountants
Course Venue
Malta International Training Centre, Suite 3 Level 1, TG Complex, Brewery Street, Mriehel BKR 3000
Fee
€1,550 per participant; which includes tuition, notes, examination and certification.
Discounts and Cancellation Policy
 Companies effecting group bookings (four or more participants) are entitled to a 10% discount.
 A 25% cancellation fee is payable for cancellations received within 15 days of the start of the
programme.
Terms of Payment
In full upon registration unless otherwise agreed with MITC.
Programme Schedule
Every Tuesday and Thursday between 1700-2000hrs
Topic
Date
Topic 1
Foundations of Risk Management
Tuesday 3rd November 2015
Topic 1
Foundations of Risk Management
Thursday 5th November 2015
Topic 1
Foundations of Risk Management
Tuesday 10th November 2015
Topic 1
Foundations of Risk Management
Thursday 12th November 2015
Topic 1
Foundations of Risk Management
Tuesday 17th November 2015
Topic 1
Foundations of Risk Management
Thursday 19th November 2015
Topic 1
Foundations of Risk Management- 2hrs
Tuesday 24th November 2015
Topic 2
Banking Products & Markets
Thursday 26th November 2015
Topic 2
Banking Products & Markets
Tuesday 1st December 2015
Topic 2
Securities Products & Markets
Thursday 3rd December 2015
Topic 2
Insurance Life & Non-Life Products
Thursday 10th December 2015
Topic 2
Derivatives, their Market & Strategies
Tuesday 15th December 2015
Topic 2
Alternative Investment Strategies & Markets
Thursday 7th January 2016
Topic 2
Alternative Investment Strategies & Markets2hrs
Tuesday 12th January 2016
Topic 3
Financial Regulation & Capital Management
Thursday 14th January 2016
Topic 3
Financial Regulation & Capital Management
Tuesday 19th January 2016
Topic 3
Financial Regulation & Capital Management
Thursday 21st January 2016
Topic 4
Quantitative Techniques & Analysis
Tuesday 26th January 2016
Topic 4
Quantitative Techniques & Analysis
Thursday 28th January 2016
Topic 4
Quantitative Techniques & Analysis
Tuesday 2nd February 2016
Topic 4
Quantitative Techniques & Analysis
Thursday 4th February 2016
Topic 4
Quantitative Techniques & Analysis
Tuesday 9th February 2016
Topic 4
Quantitative Techniques & Analysis
Thursday 11th February 2016
Topic 4
Quantitative Techniques & Analysis
Tuesday 16th February 2016
Topic 4
Quantitative Techniques & Analysis
Thursday 18th February 2016
Topic 4
Quantitative Techniques & Analysis
Tuesday 23rd February 2016
Topic 4
Quantitative Techniques & Analysis
Thursday 25th Februyar 2016
Topic 4
Quantitative Techniques & Analysis- 2hrs
Tuesday 1st March 2016
Topic 5
Financial Risk Management 1
Thursday 3rd March 2016
Topic 5
Financial Risk Management 1
Tueday 8th March 2016
Topic 5
Financial Risk Management 1
Thursday 10th March 2016
Topic 5
Financial Risk Management 1
Tuesday 15th March 2016
Topic 5
Financial Risk Management 1
Thursday 17th March 2016
Topic 5
Financial Risk Management 1
Tuesday 22nd March 2016
Topic 5
Financial Risk Management 1
Thursday 24th March 2016
Topic 6
Financial Risk Management 2
Tuesday 29th March 2016
Topic 6
Financial Risk Management 2
Tusday 5th April 2016
Topic 6
Financial Risk Management 2
Thursday 7th April 2016
Topic 6
Financial Risk Management 2
Tuesday 12th April 2016
Topic 6
Financial Risk Management 2
Thursday 14th April 2016
Topic 6
Financial Risk Management 2
Tuesday 19th April 2016
Topic 6
Financial Risk Management 2
Thursday 21st April 2016
Topic 7
Business Ethics & Sales
Tuesday 26th April 2016
Topic 7
Due Diligence
Thursday 28th April 2016
Topic 7
Standards
Tuesday 3rd May 2016
Topic 7
BASLE, CRO,MIFID, RMICAAP
Thursday 5th May 2016
Topic 7
ORSA, FIAOR, Solvency II
Tuesday 10th May 2016
Topic 7
Information Risk & Data Quality
Thursday 12th May 2016
Topic 7
Financial Disasters & Crisis/RM-Code of
Conducts
EXAM: 0930 – 1230hrs
Tuesday 17th May 2016
Tuesday 21st June 2016
Exam results will be submitted by post on 2nd August 2016
Syllabus
1. Foundations of Risk Management - 20 hours
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The theory and practice of risk management
The concept of enterprise risk management
The nature of risk and the aims of risk including systematic, strategic, liquidity, regulatory,
credit, market and operational risks
Typical approaches to risk management policy and responsibilities including the
importance of culture and communication
Techniques for identification, evaluation and analysis of risks
Good governance and the link with business objectives
Methods for risk treatment, transfer, tolerance and termination
Audit, risk assurance and social responsibility
Provide an overview of current risk management thinking, regulations
Practices and how they impact modern organisations across the world
A comprehensive and balanced approach to risk management
An overview of Frameworks (COBIT, ISO, XBRL and Others)
Global perspective of risk including cultural, political, ethical and economic challenges
2. Financial Institutions Industry and Products - 20 hours
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Banking Products and Markets
Securities Products and Markets
Insurance Life and Non-Life Products and Markets
Derivatives, their Markets and Strategies
Alternative Investment Strategies and Markets
3. Financial Regulation and Capital Management – 9 hours
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Provide a brief history of the financial regulation (Basel I, Basel II, Basel 2.5, Basel III and
Solvency II) as well as the applicable regulations to the local financial industry, viz. CRD
IV and CRR.
Illustrate the basic principles emanating from Basel III, with specific emphasise on those
relating to capital and liquidity requirements (in particular the LCR and the NSFR)
Succinctly, show how to calculate a credit institution’s level or regulatory capital based
on the CRD IV.
Explain the rationale for stress testing in the Banking Industry and the process thereof.
Make reference to the workings for the ongoing capital requirements of credit institutions
and what risks such requirements cover.
4. Quantitative Techniques and Analysis - 32 hours
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Probabilities
Basic Statistics
Distributions
Hypothesis Testing and Confidence Intervals
Linear Regression
Monte Carlo Methods
Estimating Volatilities
Estimating Correlations and Copulas
Hedging
Multiple Regression Models
Dummy Variable Regression Models
Heteroscedasticity
Autocorrelation
5. Financial Risk Management 1 - 21 hours
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Risk vs. Return for Investors
The Efficient Frontier
The Capital Asset Pricing Model
Arbitrage Pricing Theory
Risk vs. Return for Companies
Risk Management by Financial Institutions
How Traders Manage Their Risks (the Greeks)
Introduction to Value at Risk
Market Risk – Basic and Historical
Economic Capital an RAROC
Risk Management Mistakes to Avoid
Scenario Analysis and Stress Testing
Operational Risk
Documentation and Legal risk
6. Financial Risk Management 2 - 21 hours
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Interest Rate Risk
Market Risk - The Model Building Approach
Credit Risk - Estimating Default Probabilities
Counterparty Credit Risk
Value at Risk
Derivatives
Liquidity Risk
Model Risk
Enterprise Risk Management
7. Industry Values and Corporate Culture- 20 hours
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Business Ethics and Sales
Due Diligence
Rules and Requirements
Standards, Regulations and (ORSA, RMICAAP, FLAOR, BASLE, Solvency II, CRD, MIFID)
Information Risk and Data Quality
Financial Disasters and Crisis
RM - Code of Conduct
Reading List
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Risk Management and Financial Institutions, + Web Site (Wiley Finance) John Hull
Principles of Risk Management and Insurance - (Global Edition Pearson) George E. Rejda 12th
GARP - FRM Part 1 Books - http://www.garpdigitallibrary.org/display/product.asp?pid=2475
GARP FRM Part 2 Books - http://www.garpdigitallibrary.org/display/product.asp?pid=2496
The Essentials of Risk Management Michel Crouhy, Dan Galai, Robert Mark ISBN: 9780071429665
Essentials of Risk Management in Finance Anthony Tarantino with Deborah Cernauskas. Wiley ISBN:
978-0-470-63528-5
7) Essentials of Financial Risk Management Karen A. Horcher. Wiley
8) Fundamentals of Risk Management: IRM
Freely Available Readings
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"Risk Taking: A Corporate Governance Perspective," (International Finance Corporation, World
Bank Group, June 2012.).
René Stulz, "Risk Management Failures: What are They and When Do They Happen?" Fisher
College of Business Working Paper Series (Oct. 2008).
GARP Code of Conduct.
"Principles for Sound Stress Testing Practices and Supervision" (Basel Committee on Banking
Supervision Publication, May 2009).
Market Risk Measurement and Management
"Messages from the Academic Literature on Risk Measurement for the Trading Book", Basel
Committee on Banking Supervision, Working Paper No. 19, Jan 2011.
Credit Risk Measurement and Management
Adam Ashcroft and Til Schuermann, "Understanding the Securitization of Subprime Mortgage
Credit," Federal Reserve Bank of New York Staff Reports, no. 318 (March 2008).
Operational and Integrated Risk Management
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"Range of practices and issues in economic capital frameworks" (Basel Committee on Banking
Supervision Publication, March 2009).
Brian Nocco and René Stulz, "Enterprise Risk Management: Theory and Practice," Journal of
Applied Corporate Finance 18, No. 4 (2006): 8 - 20.
Duffie, Darrell, 2010. "Failure Mechanics of Dealer Banks." Journal of Economic Perspectives 24:1,
51-72.
"Principles for the Sound Management of Operational Risk," (Basel Committee on Banking
Supervision Publication, June 2011).
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"Observations on Developments in Risk Appetite Frameworks and IT Infrastructure," Senior
Supervisors Group, December 2010.
Til Schuermann. "Stress Testing Banks," April 2012.
Basel Readings
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"Basel II: International Convergence of Capital Measurement and Capital Standards: A Revised
Framework - Comprehensive Version" (Basel Committee on Banking Supervision Publication, June
2006).
"Basel III: A global regulatory framework for more resilient banks and banking systems" (Basel
Committee on Banking Supervision Publication, June 2011).
"Basel III: International framework for liquidity risk measurement, standards and monitoring" (Basel
Committee on Banking Supervision Publication, December 2010).
"Revisions to the Basel II market risk framework - Updated as of 31 December 2010" (Basel
Committee on Banking Supervision Publication, February 2011).
"Operational Risk - Supervisory Guidelines for the Advanced Measurement Approaches," (Basel
Committee on Banking Supervision Publication, June 2011).
Nadine Gatzert, Hannah Wesker, "A Comparative Assessment of Basel II/III and Solvency II,"
Working Paper, Friedrich-Alexander-University of Erlangen-Nuremberg, Version: October 2011.
Risk Management and Investment Management
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Stephen Brown, William Goetzmann, Bing Liang, Christopher Schwarz, "Trust and Delegation", May
28, 2010.
Greg N. Gregoriou and François-Serge Lhabitant, "Madoff: A Riot of Red Flags," December, 2008.
Andrew W. Lo, "Risk Management for Hedge Funds: Introduction and Overview", Financial Analysts
Journal, Vol. 57., No. 6 (Nov. - Dec., 2001), pp. 16-33.
Current Issues in Financial Markets
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Jaime Caruana and Stefan Avdjiev, "Sovereign creditworthiness and financial stability: an
international perspective." Banque de France Financial Stability Review, No. 16 (April 2012), pp.
71-85.
Li Lian Ong and Martin Cihák, "Of Runes and Sagas: Perspectives on Liquidity Stress Testing Using
an Iceland Example." IMF Working Paper WP/10/156, July 2010.
Andrew G. Haldane and Benjamin Nelson, "Tails of the unexpected" Speech from "The Credit Crisis
Five Years On: Unpacking the Crisis" conference at the University of Edinburgh (Bank of England,
June 8 2012.)
Andrew G. Haldane and Vasileios Madouros, "The Dog and the Frisbee." Speech from the Federal
Reserve Bank of Kansas City's 36th Economic Policy Symposium (Bank of England, August 31 2012.)
Gerald Rosenfield, Jay Lorsch, Rakesh Khurana (eds.), Challenges to Business in the Twenty-First
Century (Cambridge: American Academy of Arts & Sciences, 2011), Chapter 2, "Challenges of
Financial Innovation" by Myron S. Scholes.
Ananth Madhavan, "Exchange-Traded Funds, Market Structure and the Flash Crash," October
2011.Certification
Risk Management in Financial Services
Application Form
Participant Details
Name:
Address:
E-mail:
Mobile No.:
Date of Birth:
Sponsor Details
Company Name:
Company Address:
Tel. No.:
Fax No.:
Fee: €1,550 per participant
A recent CV detailing qualifications is to be submitted together with this application
Important Deadlines
Applications and CV to be received by: 22nd October 2015
Intake Date:
3rd November 2015
Examination Date:
21st June 2015
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Malta International Training Centre
Suite 3 Level 1, TG Complex, Brewery Street, Mriehel BKR 3000
e-mail : info@mitcentre.com / website : www.mitcentre.com
Telephone (00356) 21230831, 21233931 Fax (00356) 21244638
Vat Reg no 1064-7207 - Company no C5663 – NCFHE Licence no 113
MITC is licensed by The National Commission for Further and Higher Education as a Further and Higher Education Institution, is a member of the MFSA Education
Consultative Council and Board Member of the European Certification Body EFICERT