The banking Academy
The Asian Banker Basel III Implementation Simulation and Training 2013
9-11th October 2013
Venue to be confirmed,, Kuala Lumpur, Malaysia

The Basel III Implementation Simulation and Training is a revolutionary programme designed to help risk management professionals in financial institutions rehearse in great detail the different possible scenarios they will be confronted with in 2013 and 2014, sharpening decision making skills to ensure the best choices are made.

This programme is part learning, part testing ideas and part rehearsing possible economic scenarios that can affect your bank, combined with an element of mentoring.

It involves three full days of intense and highly interactive group activities, including running the three simulation exercises, group dynamics sessions on current topics and dinner conversations with industry leaders. 

As a participant to this programme, you will be made a member of a risk management team (comprising participants from different banks and countries) that has responsibility for operation of one of several banks of equal size in a community.

The teams will compete over three simulation exercises carried out over the three days.
Based on a realistic banking environment, the simulations are designed to give participants an insight into the major risk management decisions taken in banks today. Each simulation exercise will provide focused training on the practical impact of Basel III’s recommendations on every aspect of a bank’s business activities, including ALM, credit risk, market risk, liquidity, costs, channels, capital management and risk appetite.

The programme assumes that the CEO, CFO, CRO, as well the head of liabilities, the treasurer, and the business unit risk managers work as a team. You will be required to bring your own laptop.

In the process, participants will also participate in dinner lectures and group dynamics. In the dinner lectures, visiting subject matter experts will give you briefings on current best practices and current developments in technology and innovation taking place in the industry today.

• To test different economic scenarios in 2013 and 2014 with peers from different countries
• To learn from global best practice leaders
• As a team building exercise for your bank’s risk management team
• To be mentored by a faculty of the most experienced risk experts with global and Asian experience in an experiential based learning environment.

The programme is based on three simulation exercises based on the following different themes, namely:

1. Funding and liquidity risk
2. Trading book and market risk
3. Risk appetite and managing capital

More specifically, the programme is specifically designed to sharpen the following skills:

• Understanding and implementing liquidity strategies and standards
• Identifying and mitigating inherent risks in core banking businesses
• Discussing issues in trading and derivatives risks, with a focus on counterparty credit risk
• Understanding risk assessment tools and their pivotal role in the business model
• Better assessment and mitigation of operational risk
• Refining risk data aggregation techniques and improving risk reporting
• Evaluating the impact of Basel III implementation on banks’ structures

A team comprising delegates with complementary or aligned functions will find this programme immensely meaningful.

1. Chief Risk Officers and teams
2. Chief Finance Officers and teams
3. Bank Treasury teams
4. Derivative Trading Book Participants
5. In-house risk management teams
6. Strategic Planning departments
7. Business managers and Management executives 8. CEOs and board members

The programme assumes that the CEO, CFO, CRO and treasury teams all work in concert with each other. No balance sheet experience is required.

Day 1
8.30-9.00 Registration
9.00-11.15 Welcome and Opening Session

Introductions: Workshop Participants and Course Faculty

Opening Session: An update on the global implementation of Basel III, with a particular emphasis on implementation in Asia, and the main hurdles to implementation. The discussion will focus on key features of Basel III, including LCR, NSFR, countercyclical buffers and risk-weighted assets, as well as consideration of local rules being implemented throughout Asia.
  Morning Coffee break
 11.30-12.30 Overview of Funding and Liquidity Risk Simulation #1

A brief outline of the scenarios and factors to be accounted for in the simulation exercise happening in the next session, and an explanation of the basic rules and assumptions.
12.30-1.15 Lunch
1.15-3.15 Simulation #1 on Funding and Liquidity Risk

Delegates will be asked to make decisions on optimizing capital allocation and meeting the stress testing and liquidity requirements within the loss absorbing rules under Basel III.
  Afternoon tea break
 3.30-4.30 Integrating liquidity risk into a funds transfer pricing (FTP) framework

This session will discuss the best practice methodologies for integrating liquidity risk into your FTP framework and address how banks can comply with Basel III and how costs should be distributed within your bank. The session will outline key elements of liquidity risk, examining recent developments in FTP and provide a comprehensive overview of advanced transfer pricing concepts, such as alternative funding curves and appropriate funding tenors.
4.30-5.30 Funding and Liquidity Risk Debrief

We will use the simulation outcomes to help shape a discussion on balancing capital and liquidity against profitability and risk based on the size, business mix and strategy of the simulated banks.
5.30pm End of Day One

Day 2
9.00-11.15 Counterparty credit risk mitigation

The session will examine the key considerations of the Basel III counterparty credit risk requirements, including what this means for your bank’s OTC derivatives trading infrastructure and examine the risks involved using CCPs to manage counterparty risk. We will also provide a comprehensive overview of portfolio and credit risk and discuss the treatment of CVAs under Basel III and impact on your organisational framework, main sources of wrong-way risk and how to measure and manage these risks, as well as looking at guidelines on credit ratings and the use of credit derivatives in risk management.
  Morning coffee break
11.30-12.30 Overview of Trading Book and Market Risk Simulation

A brief outline of the scenarios and factors to be accounted for in the simulation exercise happening in the next session, and an explanation of the basic rules and assumptions.
12.30-1.15 Lunch
1.15-3.15 Simulation #2 on Trading Book and Market Risk

Participants will make their own decisions on reacting to scenarios of volatile markets, VaR and tail risk movements.
  Afternoon tea break
3.30-4.30 Measuring & managing operational risk in Basel III framework

Developing and implementing a thorough operational risk management system is no easy task. This session examines the best practices for identifying, assessing and managing operational risks across technology, people and governance. We will discuss how Basel III and risk capital allocation factors are contributing to operational risk, as well as consider the complexity and sophistication of IT systems and market consolidation. The session will examine management techniques, such as risk profile mapping and Straight Through Processing (STP), as well as risk culture and changes to governance.
4.30-5.30 Trading Book and Market Risk Debrief Dialogue

The aggregated outcome from today's simulation will prime the discussion on robustness checks and controls for models and methodologies, as well as practicing the crash vetting of risks and data sources.
5.30pm End of Day Two

Day 3
9.00-10.00 Risk management tools through the lens of Basel III

We will examine the suite of risk management tools and their relevance in a Basel III environment, including historical simulation, stress testing, scenario analysis, variance, covariance and correlation, Monte Carlo simulation, RAPM, VaR, stressed VaR, expected shortfall, duration and convexity, risk parameters and yield curve modelling. We will also examine how stress testing has increasingly been used as a strategic management tool, consider the best methods to implement an enterprise-wide stress testing design, as well as the remaining challenges.
10.00-11.15 Refining risk data aggregation and risk reporting

Effective risk reporting is the key to a successful risk management framework. This session will outline the design and implementation of effective operational risk reporting frameworks, covering all key Basel III requirements, to enhance your bank’s framework, as well as examining the range of risk reporting approaches and remaining challenges facing the industry.
  Morning coffee break
11.30-12.30 Overview of Risk Appetite and Managing Capital Simulation

Participants will be asked to give their input on a scenario about building products and services with considerations to risk appetite and planning.
12.30-1.15 Lunch
  Simulation #3 on Risk Appetite and Managing Capital

Delegates will be asked to make decisions on optimizing capital allocation and meeting the stress testing and liquidity requirements within the loss absorbing rules under Basel III.
  Afternoon tea break
3.30-4.30 Leveraging Basel III beyond regulatory capital

This session will examine how Basel III implementation is impacting on the strategic development of banks both in Asia and worldwide, covering topics such as regulatory arbitrage, extensions of institutional and geographical coverage and shadow banking, as well as remuneration rules. We will look at how Basel III will change banking product mix and its impact on banks’ IT infrastructure, as well as how to best use regulatory changes to boost your bank’s competitive advantage.
4.30-5.30 Risk Appetite and Managing Capital Debrief Dialogue
We will use the simulation outcomes to help shape a discussion on balancing capital and liquidity against profitability and risk based on the size, business mix and strategy of the simulated banks.

An overall round-up and focus on the most important and topical subject areas of the three days
Interactive discussion and evaluation of the key features of the course proceedings
5.30pm End of Programme

We are very proud that the faculty for this programme is made up of the most experienced risk management experts serving as teachers, facilitators and mentors, as well as subject matter experts as invited speakers.

Professor Andre Thibeault

Andre is a Professor of Banking and Financial Markets at the Vlerick Business School. He is an expert in financial risk management and has been designing banking and insurance-related simulations for over three decades, believing them to be the perfect tool to learn and understand complex organisations and topics, such as risk management. He has held several academic and consultant positions in Europe, Canada and China, including simulations development assignments with the Institute of Canadian Bankers and Febelfin Academy in Belgium. These simulations were developed and used by banks in Canada and Europe.

Andre Koch

Andre is the managing director of Stachanov Solutions & Services BV in Amsterdam, an instructor at Oracle University, and a senior lecturer in bank financial management and risk management at Nyenrode University, The Netherlands Business School.  He designs and implements simulation programmes for various risk-based scenarios including Basel III, Monte Carlo simulations, financial modeling. He takes a very data centric approach in his analysis and has written numerous articles on risk and finance.

Bertrand Pigeon

Bertrand joined The Asian Banker as senior research manager after being a buy-side equity analyst with an emphasis on the banking sector for Société Générale for over two years. He has over five years of experience in Europe, the United States, and China, working with investment banks, business lawyers, brokers, and private banks, developing a keen understanding of the financial industry as a whole. He graduated with an MSc in finance from the EDHEC Business School.

Other resource speakers

The programme is further supported by a team of researchers from The Asian Banker, as well as industry experts who are brought in as guest dinner speakers.


The fees is US$4,800 per participant for this three-day diploma programme, and includes:

• World class in-residence faculty and mentors from the Europe and Asia for three full days
• Additional speakers and subject matter experts brought in to ensure rigorous learning
• The use of the world-renowned Vlerick Business School simulation programme
• Three days full facilities and concierge service, including breakfast, lunch and dinner and top-rate locations for selected dinner evenings (your travel and hotel rooms settled separately)
• Complete course material
• The Diploma in Basel III Implementation issued jointly by The Asian Banker and The Vlerick Business School

For package prices, please contact Orlanda Poblete at

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What previous attendees say:

"Good presentation and case studies that enhance understanding"
Vice President, UOB