financial_services_brochure.pdf

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Risk Management inFinancial Services

The Institute o Risk Management Qualifcations


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The eects o the global fnancial crisis are still apparent to us all as theywork their way through the world economy in the orm o widespread public

debt and economic slowdown. The events o that period certainly came as awake-up call or risk management, some even placing the sole blame or thecrisis on poor risk management in fnancial institutions or questioning theundamental useulness o risk management as a business discipline.

Employers are now recognising theneed to invest in enterprise-wide risk

education, instead o relying on piecemealapproaches to market, credit, regulatoryand operational risks. A ully enterprise-wide approach will ensure good riskmanagement is eectively incorporatedinto decision-making processes acrossthe organisation at every level. Thisqualifcation addresses these needs.

The individual skills o those responsibleor leading the risk activities within

an organization provide insight intothe competencies needed to drive asustainable risk program... the enterpriserisk manager will need to pay specialattention to developing leadership skills,strategic thinking, ethical judgment,innovative decision-making andcommunication, to name a ew.

Risk and Insurance Management SocietyExecutive Report on the 2008 Financial Crisis

What makes IRM stand outThe Institute o Risk Management (IRM) is the worldsleading enterprise-wide risk education Institute. We

are independent, well-respected advocates o the riskproession, owned by practising risk proessionals.IRM passionately believes in the importance o riskmanagement and that investment in education andcontinuing proessional development leads to moreeective risk management. We provide qualifcations,short courses and events at a range o levels romintroductory to expert. IRM supports risk proessionalsby providing the skills and tools needed to put theoryinto practice to deal with the demands o a constantlychanging, sophisticated and challenging businessenvironment. We operate internationally, with membersand students in over 50 countries, drawn rom a variety o

risk-related disciplines and a wide range o industries.Indeed, IRMs pan-sector approach sets us apart romtraditional providers in the sector and ensures thatlessons learned in other industries are eectively appliedto fnancial services.

As a not-or-proft organisation, IRM reinvests any surplusrom its activities in the development o internationalqualifcations, membership, short courses and events.


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The qualifcation that sets you apartThe global fnancial crisis starkly demonstrated whatcan happen when an enterprise-wide approach to risk

is not taken.This qualifcation provides you with a broad practicalknowledge o enterprise-wide risk managementtechniques relevant to a successul risk management careerin fnancial services.

It is ideal or risk management generalists who need toquickly adapt to a fnancial services environment. It is alsoa logical progression or aspiring chie risk ofcers in thefnancial services sector.

Learn rom top risk practitioners

This practical qualifcation addresses the real issuesacing organisations in the fnancial services sector,in particular banking and insurance. The course hasbeen developed by a team o international industrypractitioners who, together with leading universityand business school experts have imparted theirextensive ront-line experience.

Course aimsThe qualifcation provides a thorough introductionto sources o risk and describes the tools, techniques,systems, processes and strategies necessary or managing

risk in banks and insurance companies. The course alsoocuses on the critical importance o personal skills inimplementing eective risk management and the needor commitment rom all levels within an organisation.

The course outlines how regulatory environments havedriven approaches to managing risk and explores whetherthe global fnancial crisis has shown previous approachesto be inadequate.

The purpose o the course is to develop the essentialskills or the application o enterprise-wide risk to thespecifc requirements o the fnancial services sector.It also provides an understanding o technical terms toenable communication with specialists such as credit risk

modellers and actuaries.

Learning outcomes at a glance

Ater completing the course, you willbe able to:

understand the main sources o risk inthe banking and insurance sectors

understand the approaches used bythe banking and insurance sectors tomanage risk

understand a typical enterprise-wide riskmodel in a fnancial services organisation

identiy the regulatory imperatives thathelp drive risk management in banking andinsurance and understand what regulators are

seeking to achieve understand the role o the chie risk ofcer

and the risk management unction in afnancial services organisation

examine whether the global crisis o 2007/8showed weaknesses in the approaches to riskmanagement and regulation in the bankingand insurance sectors that were in place atthe time

understand the dierences between banksand insurers with regard to risk management

matters identiy the importance o personal and

interpersonal skills, incentives, communicationand ethics in the fnancial services sector

www.theirm.org


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Course structure and content

Background to the fnancialservices sector

What is meant by fnancial servicesand why the sector is important tothe global economy

The importance o risk-taking withinthe sector

The interconnected nature o globalfnancial markets

Key concepts in fnancialservices risk management

The key fnancial and statisticaltechniques that underpin riskmanagement in fnancial services(e.g. VaR and Monte Carlosimulations.)

The importance o fnancial andnon-fnancial quantifcation

The concept o economic capitaland other methodologies such asscenario analysis and stress testing

The application o fnancial risktechniques in asset managementand hedge und businesses as wellas other, non fnancial organisations(e.g. trading desks in energy frms)

Operational risk infnancial services

Key sources o operational risk infnancial services people, processes,systems and external events

Common approaches used toidentiy, monitor and control keyoperational risks

The syllabus is logically structured into nine units.

Sources and approachesto risks in banks

Key sources o risk within the retailand wholesale banking industry Common approaches to the

identifcation, assessment andcontrol o key risks, such as creditrisk, market risk, operational riskand liquidity risk

Development o theregulatory rameworkor banks

The role o regulation in banking,including consumer protectionand improving confdence infnancial markets

Why regulation seeks to imposeminimum risk managementstandards

The background and limitations othe Basel Capital Accord

The development o bankingregulation through thedevelopment o Basel II andintroduces the concept o Basel III

The structure o and keyrequirements o, the Basel Accordand the Three Pillars

The purpose o the Sarbanes-OxleyAct and the approach taken bymajor fnancial institutions

Unit

1Unit

4

Unit

5

Unit

3

2

Unit


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Sources and approachesto risk in insurance

Key sources o risk within the lieand non-lie insurance industries Common approaches to the

identifcation, assessment andcontrol o insurance risk, credit risk,market risk, operational risk andliquidity risk

Development o theregulatory rameworkor insurers

The development o insuranceregulation starting with Solvency Iand why Solvency II was developed

The background, purpose, structureand implementation o Solvency IIand initiatives such as PSB (UK) andMaRisk (Germany)

The international context oinsurance regulation includingthe work o the InternationalAssociation o Insurance Supervisorscountries seeking equivalenceto Solvency II (e.g. Bermuda,

Switzerland and Mexico) The development o insurance

regulation in the USA (e.g. NAIC) The impact o regulation on the

role o the risk manager andthe actuary as well as other riskgovernance implications

Lessons rom ailure

The recent history o losses in thefnancial services sector including

Barings Bank, Lloyds o London(and the ormation o Equitas),Equitable Lie, Independent, AIG,Lehman Brothers and more

Why the losses occurred and thedevelopments in risk managementthat have evolved in response tothese losses

Responses to the global fnancialcrisis by regulators and the industry(e.g. Walker review in the UKand the possibility o new globalsuper regulators)

Was the global fnancial crisis causedby the ailure o risk managementor human practices?

Why group risk, contagion,brand and consumer confdenceare so important to the fnancialservices sector

The importance o thebehavioural and people elementso risk management

ERM in fnancialservices context

ERM in fnancial servicesorganisations, given the context othe regulatory developments andthe lessons learnt rom ailures

Unit

Unit

6

Unit

7

Unit

8

4

Unit

9

The most remarkable fnding is that most risk proessionals on the whole a highly analytical, data rational group believethe banking crisis was caused not so much by technical ailuresas by ailure in organisational culture and ethics.

The RiskMinds 2009 Risk Managers Survey designed and conductedby Moore, Carter & Associates and Cranfeld School o Management


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Who should take thequalifcation?

The course has been designed toprovide you with a broad practicalknowledge o enterprise-wide riskmanagement techniques relevant tofnancial services and thereore willbe o beneft to those working in:

banks - retail and wholesale

insurance - lie, general,international and brokers

regulators and credit ratingagencies

hedge unds and asset management

actuarial, legal and accountingpractices

What support dostudents get?

As a student, you will receivea detailed course handbookcovering course aims, learningoutcomes, syllabus, directed readingand sel assessment questions.Reading materials include a mix

o physical textbooks and a varietyo websites, reports, surveys, papersand other reerences.

Support is also provided through theInstitutes online student supportarea, which includes access to:

online discussion orums

course tutors

practice examination papers

In addition, students may attend apractical revision workshop which is

designed to help you prepare or theexamination at the end o the course.Attendance also provides you withthe opportunity to meet and networkwith other students and tutors.

What are the entryrequirements?

The course is open to all and doesnot have any ormal prior learningrequirements.

Are there any exemptions?

The course is an integratedprogramme, so no exemptionsare granted.

How is the course assessed?

The course is assessed througha 3 hour written examination.

Where can I take the course?Distance learning enables studentsto study anywhere in the world.The Institute has existing examinationcentres in over 30 countriesworldwide and can assist in settingup special centres i there is currentlyno centre in your country.

When are the examinations?

There are two intakes each year.Enrolment is open rom October toDecember and March to May.

Examinations take place in June andNovember/December respectively.

What is includedin the course ee?

Fees are reviewed annually. Current

rates can be ound on IRMs website.The course ee includes:

detailed course handbook

essential learning materials

online discussion orum

practice examination papers

attendance at a practicalrevision workshop

examination ees

complimentary membership othe Institute

access to IRMsonline resource centre

access to special interest groupsincluding ERM, Solvency IIand Financial Services

subscription to Risk ManagementProessional magazine

For non-UK students, there isa discounted ee available,which excludes the cost o therevision workshop.

What happens ater I havecompleted the course?

Successul completion enables you toapply or Specialist membership o theInstitute o Risk Management, which

entitles you to use the designatoryletters SIRM.

Membership ensures continuity inreceiving IRM benefts, and ongoinglearning through continuingproessional development (CPD)or urther qualifcations such asIRMs International Diploma in RiskManagement. Completion o thiscourse also entitles the holder to anexemption rom one o the specialistmodules o the International Diplomaprogramme.

The ailure o the fnancial system is oten explained in termso sub-prime mortgages, CDOs and a resulting liquidity crisis.But these are just the symptoms that happened to be aroundbecause o a much more undamental malaise. That malaisecan be best described as a undamental breakdown o twocritical balancing acts in the boardroom. Firstly, the balancebetween risk taking and risk avoidance. The second balance isthat between the perormance culture and corporate ethics.

Richard Anderson o Wipro Consulting,Risk: not just or banks, CIR October 2009


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A selection o organisations who havesupported sta to study with IRM

Allianz

Amlin

Aon

Aviva

AXA Corporate Solutions

Bank o England

Bank o Latvia

Bank o New York

Barclaycard

Barclays

FSA

Lloyds Banking Group

Lloyds o London

Marsh

Nationwide

Prudential

Royal Bank o Scotland

SantanderWillis

XL Group

Zurich

How to apply?

Application orms can be downloaded rom IRMswebsite www.theirm.org or requested rom IRMsofce. All orms and ees should be returned by theclosing date o enrolment to either:

[email protected]

The Institute o Risk Management6 Lloyds AvenueLondon, EC3N 3AXUnited Kingdom

Complimentary membershipEveryone studying or the qualifcation will be givencomplimentary membership o IRM or the duration otheir studies. This provides a wealth o benefts such asaccess to our online resource centre, networking at themembers groups, ree or discounted entry to IRM eventsand copies o the Institutes magazine: Risk ManagementProfessional.


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The Institute o Risk Management6 Lloyds AvenueLondonEC3N 3AX

+44 (0)20 7709 9808 [email protected] www.theirm.org

Limited by Guarantee Registered in England No.2009507IRM is proud to be a member o IFRIMA

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