Systemic Risk Identification and Mitigation: A Comprehensive Training Course

Introduction

Systemic risk, the risk of a collapse of the entire financial system or a significant part of it, is a primary concern for central banks and financial regulators. This training course is designed to provide policymakers and analysts with a comprehensive understanding of how to identify, measure, and mitigate systemic risk. Participants will gain a deep understanding of the drivers of systemic risk, including financial interconnectedness, leverage, and liquidity mismatches, and learn how to use modern analytical tools to monitor these vulnerabilities.

The program also focuses on the crucial link between macroprudential policy and the overall financial stability framework. We will examine the policy toolkit available to address systemic risk, including countercyclical capital buffers, leverage ratios, and liquidity requirements. By combining theoretical foundations with real-world case studies, this course will equip participants with the skills necessary to navigate a dynamic and complex financial landscape and contribute to a more resilient and stable financial system.

Target Audience

  • Central bank financial stability staff
  • Financial regulators and supervisors
  • Commercial bank risk managers
  • Government finance and planning officials
  • Academics and students of finance
  • International financial institution staff
  • Public sector debt managers
  • Legal and compliance professionals

Duration

5 days

Course Objectives

Upon successful completion of this training, participants will be able to:

  • Explain the core concepts of systemic risk and its drivers.
  • Analyze the key risks faced by the entire financial system.
  • Describe the policy toolkit for macroprudential policy.
  • Evaluate the effectiveness of different systemic risk mitigation tools.
  • Discuss the role of central banks and regulators in financial stability.
  • Apply analytical techniques to assess and monitor systemic risk.

Modules Course Content

Module 1: The Foundations of Systemic Risk

  • Defining systemic risk and its drivers
  • The role of financial interconnectedness and spillovers
  • The concepts of leverage and liquidity
  • The relationship between systemic risk and financial crises
  • The importance of a robust financial stability framework

Module 2: Identifying Systemic Risk

  • The use of early warning indicators
  • The role of credit cycles and asset prices
  • The use of network analysis
  • The impact of cross-border financial linkages
  • The challenges of measuring systemic risk

Module 3: Macroprudential Policy

  • The purpose of macroprudential policy
  • The different types of macroprudential tools
  • The coordination of monetary and macroprudential policy
  • The policy trade-offs and challenges
  • The role of a financial stability committee

Module 4: Systemic Risk Mitigation Tools

  • The use of countercyclical capital buffers (CCB)
  • The role of stress testing and scenario analysis
  • The use of leverage ratios and liquidity requirements
  • The regulation of too-big-to-fail banks
  • The importance of a well-defined resolution framework

Module 5: The Role of the Central Bank

  • The central bank's mandate for financial stability
  • The role of the central bank as a lender of last resort
  • The importance of data and surveillance
  • The challenges of independence and accountability
  • The central bank's role in a financial crisis

Module 6: Financial Crises and Early Warning Indicators

  • The different types of financial crises
  • The use of early warning indicators
  • The challenges of forecasting a crisis
  • The role of credit cycles
  • The importance of a crisis management plan

Module 7: The External Sector and Financial Stability

  • The impact of capital flows on financial stability
  • The role of exchange rates and foreign currency debt
  • The challenges of managing a currency crisis
  • The role of international cooperation
  • The importance of a resilient external sector

Module 8: The Role of Technology and FinTech

  • The impact of FinTech on financial stability
  • The challenges of regulating FinTech
  • The role of new technologies in supervision
  • The impact of digital currencies
  • The use of technology for surveillance

Module 9: Global Regulatory Frameworks

  • The role of the Financial Stability Board (FSB)
  • The Basel Accords (Basel III)
  • The challenges of global policy coordination
  • The role of international standards
  • The importance of a level playing field

Module 10: Case Studies and Current Debates

  • The 2008 Global Financial Crisis
  • The lessons from past financial crises
  • The debate over macroprudential policy
  • The challenges of managing a financial crisis
  • The future of financial stability

CERTIFICATION

  • Upon successful completion of this training, participants will be issued with Macskills Training and Development Institute Certificate

TRAINING VENUE

  • Training will be held at Macskills Training Centre. We also tailor make the training upon request at different locations across the world.

AIRPORT PICK UP AND ACCOMMODATION

  • Airport Pick Up is provided by the institute. Accommodation is arranged upon request

TERMS OF PAYMENT

Payment should be made to Macskills Development Institute bank account before the start of the training and receipts sent to info@macskillsdevelopment.com

For More Details call: +254-114-087-180

 

 

Systemic Risk Identification And Mitigation: A Comprehensive Training Course in Saint Kitts and Nevis
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