Introduction

The potential for a Central Bank Digital Currency (CBDC) represents one of the most significant shifts in the history of money, promising greater financial inclusion, efficiency, and stability. However, this transformative technology is not without its challenges. The introduction of a CBDC creates a new landscape of risks, from cybersecurity threats and privacy concerns to the potential for destabilizing the commercial banking sector. This course is designed to provide you with the essential knowledge and tools to identify, assess, and manage these multifaceted risks effectively.

This comprehensive program will guide you through the intricacies of CBDC and its inherent risks. You will explore the technical, legal, and economic implications of a digital currency, learning how to analyze its impact on monetary policy, financial stability, and international transactions. The course will also cover the latest in security protocols and governance frameworks, enabling you to develop robust strategies for mitigating risks associated with CBDC implementation. By the end of this training, you will be proficient in navigating this new financial frontier, ensuring that your organization is well-prepared for the challenges and opportunities presented by digital currencies.

Duration: 10 Days

Target Audience

• Financial risk analysts
• Monetary policy experts
• Central bank officials
• Financial regulators
• Cybersecurity professionals
• Legal and compliance officers
• Economists and researchers
• Financial technology (fintech) professionals
• Commercial bank executives
• Payment system operators

Objectives

• Understand the core concepts of a Central Bank Digital Currency.
• Master the principles of a fair and transparent CBDC framework.
• Analyze the key risks in a digital currency ecosystem.
• Learn to build and validate advanced risk models.
• Use quantitative tools for risk detection.
• Understand the regulatory framework governing these practices.
• Develop a framework for CBDC risk analysis.
• Assess the impact of CBDC on a lending portfolio.
• Understand the ethical implications of financial transactions.
• Use machine learning for predictive modeling.

Course Modules

Module 1: Foundations of CBDC

• The importance of a transparent and fair CBDC
• The unique challenges of digital banks
• The difference between traditional and digital money
• The role of technology in financial risk
• The impact of a changing economic environment

Module 2: CBDC and Financial Stability

• The principles of a stable financial system
• The use of internal and external data
• The role of decentralized finance (DeFi)
• The challenges of working with limited historical data
• The use of data visualization tools

Module 3: Cybersecurity Risks

• The importance of a clean and reliable dataset
• The use of internal and external data
• The role of alternative data
• The challenges of working with limited historical data
• The use of data visualization tools

Module 4: Privacy and Data Protection

• The principles of an econometric model
• The use of time series analysis and regression
• The importance of a reliable dataset
• The validation and back-testing of models
• The challenges of working with limited historical data

Module 5: Monetary Policy Implications

• The principles of a machine learning model
• The use of statistical methods and machine learning
• The importance of a reliable dataset
• The validation and back-testing of models
• The challenges of working with limited historical data

Module 6: Scenario Analysis and Stress Testing

• The concept of scenario analysis
• The role of stress testing in risk management
• The benefits for both lenders and regulators
• The importance of a robust technology platform
• The challenges of implementing these solutions

Module 7: The Regulatory and Legal Landscape

• An introduction to key financial regulations
• The role of regulators in overseeing digital banks
• The legal challenges of cross-border transactions
• The importance of a robust compliance program
• The ethical implications of financial transactions

Module 8: Risk Mitigation Strategies

• The types of risk mitigation instruments
• The use of credit insurance
• The importance of a robust risk mitigation strategy
• The challenges of implementing a dynamic risk mitigation program
• The role of derivatives in managing risk

Module 9: CBDC and Payment Systems

• The concept of portfolio risk management
• The role of diversification in reducing risk
• The types of portfolio optimization techniques
• The importance of a data-driven approach
• The challenges of a rapidly changing market

Module 10: Capstone Project Part 1: Design

• Defining a specific lending portfolio for modeling
• Mapping the data requirements and model architecture
• Outlining the key technical and analytical requirements
• Creating a detailed project plan
• Presenting the design to a mock review board

Module 11: Capstone Project Part 2: Development

• Implementing a CBDC risk model for a chosen asset
• Using the model to evaluate a sample of transactions
• Analyzing the model's performance on key metrics
• Building a presentation to explain the analysis
• Documenting all assumptions and data sources

Module 12: Capstone Project Part 3: Presentation

• Presenting the full analysis of the chosen lending portfolio
• Discussing the risks and benefits of the model
• Proposing a plan for model improvement
• Q&A and peer feedback session
• Receiving expert recommendations and insights

Module 13: Emerging Trends

• The use of blockchain in lending
• The role of AI in risk assessment
• The evolution of lending instruments
• The impact of new data sources on risk assessment
• The future of lending risk

Module 14: Case Studies

• A case study of a major digital bank
• A case study of a fintech's risk management
• A case study of a financial institution's regulatory challenges
• The lessons learned from past credit cycles
• The importance of a robust framework

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.