Introduction

In the complex world of financial regulation, staying compliant with ever-evolving frameworks like Basel III and IV is a major challenge for banks and financial institutions. Manual calculation processes are not only prone to errors but also incredibly time-consuming, hindering agility and strategic decision-making. The automation of these capital calculations is now a strategic imperative, enabling faster, more accurate, and more frequent reporting while freeing up valuable resources for higher-value tasks like risk analysis and business strategy. This Code-Driven Compliance: Automation of Basel III/IV Capital Calculations training course is a 10-day intensive program designed to provide you with the practical skills and knowledge to automate these critical processes.

This course will guide you through the intricacies of the Basel framework, from understanding its rules to implementing automated solutions using a combination of modern programming languages and data management techniques. You will learn to build scalable and auditable systems that can handle large datasets, perform complex calculations, and generate compliant reports. By the end of this training, you will be equipped to lead automation initiatives within your organization, ensuring that your firm remains at the forefront of regulatory compliance and operational efficiency.

Duration: 10 Days

Target Audience

• Regulatory compliance officers
• Capital planning analysts
• Risk model validators
• Financial data engineers
• IT professionals in finance
• Financial programmers and developers
• Chief Financial Officers (CFOs)
• Auditors and consultants
• Treasury and funding managers
• Portfolio managers

Objectives

• Understand the key pillars and rules of Basel III/IV.
• Identify the specific data and calculation requirements.
• Learn to translate regulatory rules into code.
• Master the use of programming languages for financial calculations.
• Build a scalable and auditable automation solution.
• Understand data lineage and governance in an automated context.
• Implement error handling and data validation.
• Integrate automated solutions with existing systems.
• Create automated reports for regulatory submission.
• Discuss best practices for maintenance and updates.

Course Modules

Module 1: Foundations of Basel III/IV

• An overview of the Basel framework and its history
• Understanding the three pillars (Pillar 1, 2, and 3)
• The transition from Basel III to Basel IV
• Key concepts like RWA, capital ratios, and leverage ratio
• The role of the regulator in the compliance process

Module 2: The Regulatory Challenge

• The complexity of regulatory rules and formulas
• The data requirements for accurate calculations
• The challenges of manual processes and spreadsheets
• The cost of non-compliance and regulatory fines
• The strategic advantage of automation

Module 3: Introduction to Automation Tools

• The role of scripting languages (e.g., Python, R)
• An introduction to financial libraries
• The use of databases for data storage
• Data visualization for results monitoring
• The basics of version control and collaboration

Module 4: Calculating Capital Ratios (Pillar 1)

• The standardized vs. internal ratings-based approach
• Calculating risk-weighted assets (RWA)
• The credit valuation adjustment (CVA) framework
• Operational risk capital calculation
• Market risk capital calculation

Module 5: Credit Risk Automation

• Automating the calculation of credit risk exposure
• Using a programmatic approach for credit risk
• The impact of credit mitigation techniques
• Automating the calculation of default probabilities
• Generating and processing large datasets of loan portfolios

Module 6: Operational and Market Risk Automation

• Automating the calculation of operational risk
• Applying automation to market risk metrics
• The use of Monte Carlo simulations in automation
• Calculating and reporting Value at Risk (VaR)
• Ensuring data consistency across risk types

Module 7: Data Management for Automation

• The importance of a clean and consistent data source
• Implementing a robust data pipeline
• Data validation and reconciliation
• The use of data governance in automation
• Building an auditable data trail

Module 8: Building a Scalable Architecture

• Designing a modular and flexible system
• The use of cloud services for scalability
• The benefits of a microservices architecture
• Implementing an API for data retrieval
• Ensuring the system is future-proof

Module 9: Reporting and Visualization

• Automating the generation of regulatory reports
• Creating custom dashboards for key metrics
• The importance of clear and concise visuals
• Generating reports in various formats
• Ensuring data integrity in the final report

Module 10: Capstone Project Part 1: Design

• Defining a specific capital calculation to automate
• Mapping the data flow and system architecture
• Outlining the key technical requirements
• Creating a detailed project plan
• Presenting the design to a mock review board

Module 11: Capstone Project Part 2: Development

• Writing the code for the selected calculation
• Implementing data validation and error handling
• Connecting to a data source and retrieving data
• Building a simple report generator
• Debugging and testing the code

Module 12: Capstone Project Part 3: Presentation

• Presenting the final automated solution
• Demonstrating the efficiency and accuracy
• Discussing the challenges and solutions
• Q&A and peer feedback session
• Receiving expert recommendations and insights

Module 13: Model Risk and Validation

• The role of automation in model validation
• Ensuring the automation system is a "model"
• The importance of independent validation
• Documenting the automation process for validation
• Ongoing monitoring and backtesting

Module 14: Future of Regulatory Automation

• The impact of AI and machine learning
• The potential of distributed ledger technology
• Integrating climate and ESG risk into automation
• Adapting to new regulatory changes
• The evolving role of compliance professionals

Module 15: Course Certification

• A final comprehensive assessment
• A final review of key concepts and objectives
• Issuance of a certificate of completion
• Post-course career guidance and networking
• A final Q&A with instructors

Training Approach

This course will be delivered by our skilled trainers who have vast knowledge and experience as expert professionals in the fields. The course is taught in English and through a mix of theory, practical activities, group discussion and case studies. Course manuals and additional training materials will be provided to the participants upon completion of the training.

Tailor-Made Course

This course can also be tailor-made to meet organization requirement. For further inquiries, please contact us on: Email: info@skillsforafrica.org, training@skillsforafrica.org  Tel: +254 702 249 449

Training Venue

The training will be held at our Skills for Africa Training Institute Training Centre. We also offer training for a group at requested location all over the world. The course fee covers the course tuition, training materials, two break refreshments, and buffet lunch.

Visa application, travel expenses, airport transfers, dinners, accommodation, insurance, and other personal expenses are catered by the participant

Certification

Participants will be issued with Skills for Africa Training Institute certificate upon completion of this course.

Airport Pickup and Accommodation

Airport pickup and accommodation is arranged upon request. For booking contact our Training Coordinator through Email: info@skillsforafrica.org, training@skillsforafrica.org  Tel: +254 702 249 449

Terms of Payment: Unless otherwise agreed between the two parties’ payment of the course fee should be done 10 working days before commencement of the training.