Measuring risk in financial statements

Introduction

This 90-minute webinar on measurement of risk in banks’ financial statements will cover the aspects of risks to be reported, where these are to be found, and finally concrete examples. Whilst the dream of external stakeholders of a bank is to understand the risk profile of a bank, management may have a different perspective and a priority to attract potential investors and reassure the public and regulators. International regulators have made some tries at addressing the issue. This is pillar 3 and the art of disclosure, which includes the obligation for banks to know their risk appetite and to communicate about it.

Why should you attend?

It is increasingly difficult to understand and assess the idiosyncratic elements of future profitability of banks, let alone their risks and the way they can handle them. We offer here a few approaches to read the risk components of financial statements and annual reports.

Learning Objectives

• Refresh about the nature of risks incurred by banks
• Review the basic international texts on risk disclosure
• Understand what risk appetite statements are supposed to be about
• Banks’ regulatory and managerial stress-tests
• Get an overview at pillar 3 disclosures, motivations of regulators, aims of banks
• Acquire a critical view on the risks actually run by banks and how these can creep into financial statements

Areas covered in the Webinar

• Banks risks and the ways to handle them
• Basel texts: pillar 3
• A bank’s risk appetite statement
• Regulatory constraints and necessities regarding stress-tests
• Disclosure: applied game theory
• Analysis, through examples, about a few risks and their communication

Who Will Benefit?

This webinar is primarily aimed at financial institutions.

Speaker : Fred Vacelet

Fred Vacelet is a Financial Risk Management Consultant and trainer with an international expertise in Risk Management methodological frameworks. His experience spans some 25 years, advising banks, software houses and others on risk management. Fred holds various degrees, including from London Business School, with post-graduate studies at the Technische (then West)-Berlin and Keio (Japan) universities. He is a published author on risk management and Basel Accords, and a regular speaker at conferences. Fred runs training courses and workshops with participants from various banks around the world.

Time: 01:00 PM EST| 10:00 PM PST | Duration: 90 Minutes