In an era of unprecedented market volatility and interconnectedness, the ability to monitor and assess counterparty risk in real time is no longer a luxury but a fundamental necessity. This training course is meticulously crafted to empower finance and risk professionals with the advanced techniques and tools required to move beyond static, periodic reviews. By adopting a dynamic surveillance approach, participants will learn how to anticipate and respond to emerging risks, ensuring the stability and resilience of their financial operations.

This program provides a comprehensive framework for implementing a robust counterparty surveillance system, leveraging modern technologies and data analytics to capture early warning signals. Participants will gain practical skills in setting up automated alerts, interpreting a continuous stream of financial and non-financial data, and integrating surveillance insights into their decision-making processes. The course is a strategic investment for any institution aiming to proactively manage credit, operational, and reputational risks, thereby safeguarding their assets and fostering greater confidence among stakeholders.

Duration: 10 days

Target Audience:

• Credit Risk Managers
• Counterparty Risk Analysts
• Portfolio Managers
• Traders and Front Office Personnel
• Compliance Officers
• Operational Risk Managers
• Internal Audit Professionals
• Financial Crime Analysts
• Relationship Managers
• Treasury Professionals

Objectives:

• Understand the paradigm shift from periodic to real-time counterparty surveillance.
• Master the use of technology and data analytics for continuous monitoring.
• Develop a comprehensive framework for identifying and tracking key risk indicators.
• Implement an effective early warning system to detect signs of distress.
• Learn how to integrate surveillance insights into credit and trading decisions.
• Enhance the resilience of portfolios against sudden counterparty events.
• Understand the regulatory and compliance aspects of continuous surveillance.
• Build a proactive and agile risk management culture.
• Identify and mitigate a wide range of counterparty risks, including financial, operational, and reputational.
• Create a robust, data-driven counterparty surveillance function.

Course Modules:

Module 1: The Evolving Landscape of Counterparty Risk

• Understanding the limitations of traditional counterparty risk management
• Drivers for the shift to real-time surveillance
• The role of technology in risk monitoring
• The cost of inaction: lessons from past crises
• Setting the stage for a proactive risk culture

Module 2: Foundational Framework for Real-Time Surveillance

• Defining key objectives and scope for a surveillance program
• Identifying critical data sources for continuous monitoring
• Designing a surveillance architecture
• Integrating internal and external data feeds
• Establishing a governance model for the surveillance function

Module 3: Data and Technology for Continuous Monitoring

• Leveraging big data and machine learning in risk analysis
• Overview of surveillance software and platforms
• The role of APIs for data integration
• Data quality, governance, and management
• Implementing a secure and scalable surveillance infrastructure

Module 4: Key Risk Indicators (KRIs) and Early Warning Signals

• Identifying and categorizing financial and non-financial KRIs
• Building a custom KRI dashboard
• Setting up automated alerts and thresholds
• Differentiating between noise and true risk signals
• The psychology of early warning systems

Module 5: Financial Statement Analysis in Real Time

• Automating the analysis of financial reports and filings
• Monitoring liquidity and cash flow indicators
• Tracking changes in profitability and leverage ratios
• Using alternative financial data for a complete picture
• The role of real-time market data in financial health checks

Module 6: Behavioral and News-Based Surveillance

• Sourcing and analyzing news, social media, and market sentiment
• Using natural language processing (NLP) for risk event detection
• Monitoring for reputational and operational risks
• Tracking key personnel changes and strategic announcements
• The impact of negative news on a counterparty’s risk profile

Module 7: Supply Chain and Operational Risk Monitoring

• Mapping and monitoring critical supply chain dependencies
• Identifying signs of operational distress in real time
• Tracking changes in logistics, production, and service delivery
• The use of geospatial data for risk assessment
• Surveillance of third-party vendors and partners

Module 8: Legal and Regulatory Surveillance

• Monitoring for changes in legal and regulatory frameworks
• Tracking litigation, bankruptcies, and court filings
• Staying abreast of sanctions and politically exposed persons (PEPs) lists
• The role of real-time monitoring in anti-money laundering (AML) and know your customer (KYC)
• Ensuring compliance through continuous data checks

Module 9: Credit Portfolio Surveillance

• Applying real-time surveillance to an entire credit portfolio
• Identifying concentration risk and correlations in real time
• Aggregating counterparty-level risks to a portfolio view
• Stress testing a portfolio with real-time data
• Using surveillance insights to optimize portfolio allocation

Module 10: Counterparty Surveillance in Trading and Hedging

• Integrating real-time risk checks into trading workflows
• Setting up automated triggers for margin calls and collateral adjustments
• Monitoring the credit risk of trading partners
• The use of surveillance in over-the-counter (OTC) derivatives
• Managing and mitigating settlement risk

Module 11: Alerting and Incident Response

• Designing an effective alert notification system
• Triage and prioritization of high-risk alerts
• Developing a clear incident response plan
• The role of human analysts in interpreting alerts
• Post-incident analysis and process improvement

Module 12: Visualization and Reporting

• Building interactive dashboards for real-time risk visualization
• Creating clear and concise reports for senior management
• Communicating risk insights to business units
• Using data storytelling to highlight key trends
• The importance of a single, unified view of counterparty risk

Module 13: Case Studies in Real-Time Surveillance

• Analyzing successful implementations of surveillance systems
• Learning from high-profile counterparty failures
• The impact of real-time monitoring on risk mitigation
• Group exercises on live case scenarios
• Lessons learned and best practices

Module 14: Integrating Surveillance with Decision-Making

• How real-time insights inform credit decisions
• Using surveillance to adjust credit limits and terms
• The role of surveillance in credit renewals and restructuring
• Integrating surveillance data into risk-based pricing models
• Fostering a continuous feedback loop between surveillance and front-office teams

Module 15: The Future of Counterparty Surveillance

• The role of AI and predictive analytics
• The rise of distributed ledger technology (DLT) for counterparty data
• The ethical implications of continuous surveillance
• New data sources and their potential for risk monitoring
• Anticipating future regulatory and technological changes

Module 16: Building Your Surveillance Function

• Developing a strategic roadmap for implementation
• Sourcing and vetting technology providers
• Training and upskilling your risk team
• Change management and stakeholder buy-in
• Action planning for a successful go-live

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.