Safeguarding Stability: Crisis Management & Resolution Planning For Capital Markets Training Course

Introduction

Ensuring the stability and orderly functioning of capital markets necessitates robust crisis management and effective resolution planning for systemically important entities under central bank purview. This critical training course explores global best practices in developing and implementing comprehensive frameworks to manage and resolve crises affecting key capital market infrastructures (CMIs) and significant participants. Participants will gain a deep understanding of the essential elements of effective crisis management and the strategic considerations for designing credible and executable resolution plans, ultimately enhancing the resilience of the financial system. Mastering crisis management and resolution planning for capital market infrastructures is paramount for mitigating systemic risk and ensuring market continuity during periods of stress.

This intensive training course delves into the specific challenges and complexities of crisis management and resolution planning for entities like exchanges, central counterparties (CCPs), and systemically important investment firms. We will examine the key stages of crisis management, from early intervention and liquidity support to communication strategies and cross-border coordination. Furthermore, the course will focus on the development of effective resolution plans, including recovery and resolution strategies, bail-in mechanisms, and the establishment of resolution authorities and frameworks under central bank oversight. Participants will learn how to anticipate potential crisis scenarios, develop actionable plans, and coordinate effectively to minimize disruption and maintain financial stability within capital markets.

Target Audience

• Central Bank Officials
• Resolution Authority Staff
• Financial Market Infrastructure Oversight Specialists
• Risk Management Professionals
• Legal Professionals
• Compliance Officers
• Financial Stability Analysts

Course Objectives

• Understand the importance of robust crisis management and resolution planning for systemically important capital market entities.
• Identify the key components and best practices of effective crisis management frameworks for FMIs and key participants.
• Learn the principles and methodologies for developing credible and executable resolution plans for systemically important entities.
• Understand the specific challenges and considerations for crisis management and resolution of different types of capital market infrastructure (e.g., CCPs, exchanges).
• Explore the application of resolution tools, including bail-in and other mechanisms, for systemically important firms.
• Learn about the role and responsibilities of central banks and resolution authorities in crisis management and resolution.
• Understand the importance of cross-border cooperation and information sharing in the crisis management and resolution of global entities.
• Develop strategies for effective communication and coordination during a capital market crisis.
• Learn how to conduct resolvability assessments for systemically important capital market participants and infrastructures.
• Understand the legal and regulatory frameworks underpinning crisis management and resolution regimes.
• Explore the interplay between crisis management planning and business continuity planning.
• Learn about early intervention strategies and triggers for activating crisis management and resolution plans.
• Understand the considerations for post-crisis review and lessons learned to enhance future preparedness.

Duration

10 Days

Course content

Module 1: Foundations of Crisis Management and Resolution Planning

• Understanding the objectives and importance of crisis management and resolution regimes for financial stability in capital markets for your module.
• Distinguishing between crisis management and resolution planning and their respective roles.
• Exploring the key principles and international standards for effective crisis management and resolution frameworks.
• Analyzing the potential impact of disorderly failures of systemically important entities on capital markets.
• Examining the roles and responsibilities of central banks, resolution authorities, and other stakeholders.

Module 2: Best Practices in Crisis Management for Capital Market Infrastructures

• Developing effective governance structures and decision-making processes for crisis management within FMIs for your module.
• Establishing clear communication protocols and stakeholder engagement strategies during a crisis.
• Implementing robust liquidity management and collateralization frameworks to withstand stress events.
• Designing effective operational resilience and business continuity plans to ensure continuity of critical functions.
• Conducting regular crisis simulation exercises and scenario testing to enhance preparedness.

Module 3: Developing Credible Resolution Plans for Systemically Important Entities

• Understanding the key elements of a resolvability assessment and its role in resolution planning for your module.
• Identifying critical functions and core business lines of systemically important capital market participants and infrastructures.
• Developing resolution strategies tailored to different types of entities (e.g., CCPs, investment firms).
• Exploring various resolution tools and their applicability in the capital markets context.
• Ensuring the legal and operational feasibility of resolution plans.

Module 4: Crisis Management and Resolution of Central Counterparties (CCPs)

• Understanding the specific risks and vulnerabilities of CCPs and their systemic importance in capital markets for your module.
• Analyzing the unique challenges in managing and resolving a CCP crisis, including default management and tear-up procedures.
• Exploring the application of CCP-specific resolution tools and powers.
• Understanding the role of central bank liquidity support for CCPs in crisis situations.
• Examining international standards and best practices for CCP crisis management and resolution.

Module 5: Crisis Management and Resolution of Exchanges and Trading Venues

• Understanding the potential for operational and financial crises affecting exchanges and trading venues for your module.
• Developing strategies for ensuring orderly trading and market continuity during periods of stress.
• Analyzing the challenges of managing clearing and settlement disruptions at exchanges.
• Exploring the role of circuit breakers and other market safeguards in crisis situations.
• Examining resolution considerations for systemically important trading venues.

Module 6: Resolution Tools for Systemically Important Capital Market Participants

• Exploring the application of bail-in as a resolution tool for systemically important investment firms and other participants for your module.
• Understanding the legal and operational requirements for effective bail-in execution.
• Analyzing the potential impact of bail-in on creditors and market confidence.
• Examining other resolution tools, such as asset sales and bridge institutions, and their applicability.
• Considering the interaction of different resolution tools in a comprehensive resolution strategy.

Module 7: Roles and Responsibilities of Central Banks and Resolution Authorities

• Defining the specific roles and responsibilities of central banks in crisis management and resolution of capital market entities for your module.
• Understanding the powers and functions of designated resolution authorities.
• Analyzing the coordination mechanisms between central banks and resolution authorities.
• Exploring the legal frameworks establishing resolution regimes and central bank powers.
• Examining the accountability and governance of resolution authorities.

Module 8: Cross-Border Cooperation in Crisis Management and Resolution

• Understanding the challenges of managing and resolving crises involving global capital market entities and infrastructures for your module.
• Exploring international agreements and protocols for cross-border cooperation and information sharing.
• Analyzing the role of crisis management groups (CMGs) for global systemically important institutions.
• Understanding the complexities of applying resolution tools across multiple jurisdictions.
• Examining the importance of home-host authority coordination in resolution planning and execution.

Module 9: Effective Communication and Coordination During a Capital Market Crisis

• Developing clear and timely communication strategies for engaging with market participants, the public, and other stakeholders during a crisis for your module.
• Establishing effective coordination mechanisms among relevant authorities and industry participants.
• Understanding the importance of managing market expectations and preventing contagion.
• Exploring the use of communication channels and platforms during a crisis.
• Analyzing the role of public statements and press releases in managing a crisis.

Module 10: Conducting Resolvability Assessments for Key Capital Market Entities

• Understanding the methodologies and criteria for conducting resolvability assessments for systemically important capital market participants and infrastructures for your module.
• Identifying impediments to orderly resolution and developing strategies to address them.
• Analyzing the operational and legal complexities of resolution.
• Exploring the use of heat maps and other tools for visualizing resolvability challenges.
• Understanding the role of resolvability assessments in informing resolution planning.

Module 11: Legal and Regulatory Frameworks for Crisis Management and Resolution

• Examining the key legal and regulatory frameworks underpinning crisis management and resolution regimes in different jurisdictions for your module.
• Understanding the powers and limitations of resolution authorities under these frameworks.
• Analyzing the legal basis for the application of resolution tools, including bail-in.
• Exploring the impact of insolvency laws on resolution processes.
• Understanding the implications of cross-border legal differences for resolution effectiveness.

Module 12: Interplay Between Crisis Management Planning and Business Continuity Planning

• Understanding the relationship and distinctions between crisis management planning and business continuity planning within capital market entities for your module.
• Analyzing how effective business continuity plans can contribute to crisis management and resolution efforts.
• Exploring the integration of cyber resilience planning into both crisis management and business continuity frameworks.
• Understanding the importance of testing and exercising both crisis management and business continuity plans.
• Ensuring alignment and coordination between these critical planning functions.

Module 13: Early Intervention Strategies and Triggers for Crisis Action

• Developing frameworks for early identification of potential distress in systemically important capital market entities for your module.
• Establishing clear triggers for activating crisis management protocols and resolution planning processes.
• Exploring the use of supervisory data and market indicators for early warning.
• Analyzing the challenges of timely intervention and the need for decisive action.
• Understanding the importance of pre-emptive measures to mitigate the likelihood and impact of crises.

Module 14: Post-Crisis Review and Lessons Learned for Enhanced Preparedness

• Establishing processes for conducting thorough post-crisis reviews to identify lessons learned for your module.
• Analyzing the effectiveness of crisis management and resolution actions taken.
• Identifying areas for improvement in preparedness, planning, and coordination.
• Implementing changes to regulatory frameworks, supervisory practices, and resolution plans based on lessons learned.
• Fostering a culture of continuous improvement in crisis preparedness.

Module 15: Developing a Comprehensive Crisis Management and Resolution Framework

• Guiding participants in developing a comprehensive and tailored crisis management and resolution framework for systemically important capital market entities within their own jurisdictions for your module.
• Defining clear objectives and responsibilities for crisis management and resolution.
• Establishing robust governance structures and operational procedures.
• Developing credible and executable resolution plans.
• Planning for effective communication, coordination, and cross-border cooperation.

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 7 working days before commencement of the training.