Risk-Based Supervision of Financial Institutions Training Course

Introduction
With the evolution of complex financial products, cross-border operations, and heightened systemic vulnerabilities, regulators must move beyond compliance-based oversight to a risk-based approach. The Risk-Based Supervision of Financial Institutions Training Course is designed to equip supervisors, regulators, and financial oversight professionals with the skills and tools necessary to identify, assess, and mitigate key risks in regulated institutions. This strategic approach allows authorities to allocate resources based on risk severity, focusing supervision on areas of highest impact to financial stability and consumer protection.

Conducted over five intensive days, this course offers a deep dive into the principles, methodologies, and implementation strategies for risk-based supervision (RBS). It combines theoretical concepts with practical tools such as risk matrices, supervisory risk scoring models, early warning indicators, and tailored supervisory planning. Participants will engage in hands-on exercises, case studies, and peer discussions to strengthen their capacity to make informed, risk-sensitive decisions and promote soundness in the financial sector.

Duration: 5 days

Target Audience:

  • Financial sector supervisors and regulators
  • Central bank supervision departments
  • Risk analysts and compliance examiners
  • Officials from financial regulatory authorities and insurance commissions
  • Policy advisors and legal experts involved in supervisory frameworks

Course Objectives:

  • Understand the core principles and objectives of risk-based supervision
  • Identify key prudential, conduct, and systemic risks in financial institutions
  • Apply tools and frameworks for assessing risk and supervisory response
  • Prioritize supervisory activities based on institutional risk profiles
  • Strengthen proactive, forward-looking supervision to maintain financial stability

Course Modules

  1. Introduction to Risk-Based Supervision (RBS)
  • Evolution from rules-based to risk-based approaches
  • Objectives and benefits of risk-based supervision
  • Key RBS principles: proportionality, forward-looking, risk focus
  • Regulatory frameworks supporting RBS (BIS, IMF, IAIS)
  • Overview of implementation challenges and best practices
  1. Risk Identification in Financial Institutions
  • Identifying major risk categories: credit, market, liquidity, operational
  • Emerging risks: cybersecurity, fintech, ESG, macro-financial shocks
  • Institutional risk profiling and business model analysis
  • Risk mapping techniques and control environment evaluation
  • Use of financial indicators and market intelligence
  1. Supervisory Risk Assessment Methodologies
  • Qualitative and quantitative assessment techniques
  • Rating systems and scoring models (e.g., CAMELS, ORSA)
  • Gathering and validating supervisory information
  • Evaluating management quality and risk governance
  • Assessing internal controls and audit functions
  1. Supervisory Planning and Resource Allocation
  • Developing annual and strategic supervisory plans
  • Prioritizing institutions based on risk exposure
  • Planning thematic reviews and on-site inspections
  • Coordinating across supervisory departments
  • Using RBS to optimize supervisory efficiency
  1. Conducting Risk-Based On-Site and Off-Site Supervision
  • Planning risk-focused on-site inspections
  • Interview techniques and review of internal documents
  • Off-site surveillance using early warning systems
  • Supervisory reporting templates and data validation
  • Integrating findings into institutional risk ratings
  1. Supervisory Response and Risk Mitigation Actions
  • Developing supervisory action plans and remediation requirements
  • Escalation procedures based on risk level
  • Enforcement options: warnings, penalties, interventions
  • Dialogue with supervised institutions on risk remediation
  • Monitoring implementation and reassessing risk
  1. Communication and Stakeholder Engagement in RBS
  • Supervisory transparency and engagement with institutions
  • Sharing findings with boards and senior management
  • Coordination with other regulatory bodies and the public
  • Communicating systemic risks to policymakers
  • Disclosure strategies and market discipline
  1. Case Studies, Simulations, and International Practices
  • Lessons from risk-based supervision failures and successes
  • Regional and global RBS implementation models
  • Simulation: applying RBS to a fictional financial institution
  • Peer review of supervisory plans and scoring outputs
  • Final exercise: development of a risk-based supervision roadmap

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 and 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

 

Risk-based Supervision Of Financial Institutions Training Course in Senegal
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