Internal Capital Adequacy Assessment Process Basel II Pillar II

Curriculum

RIMAN’s ICAAP Programme is designed for Financial Regulators and Operators. The program focus on the subject matters of regulatory capital requirement, measurement, the varying approaches to measurement and management from the operators (ICAAP) and regulators (SREP) perspectives. The progamme can be provided in introductory (2days) and complete (4-5days) format.

The Scope

ICAAP is a special programme with varying levels of intensity. Full programmes can range between 4 to 5 days and in the case of advanced/or master classes - 7 working days. Introductory programmes run for 2days. The programme will address the following risk management subject matters with varying degrees of intensity with respect to the programme.

  1. Basel Accord and ICAAP: – Appraisal of the Basel II and III accord with respect to regulatory capital requirement and management processes
  2. Risk Measurement – Basel II Pillar II risk measurement and methodologies
  3. Capital Allocation – Allocation of capital to Pillar II Risks, and Capital Allocation and Pricing
  4. Pillar III – Supervisory Review and Evaluation Process: Regulatory perspective
  5. Specific Aspects of ICAAP – Risk models

Learning Objectives

The Concept of Internal Capital Adequacy Assessment Process

  • Holistic understanding of ICAAP as required under BASEL Accord 
  • Coverage of Pillar II risks in ICAAP 
  • Understand the data requirements and computational challenges for Banks in implementing ICAAP 
  • Bank specific modes of implementation of ICAAP framework 
  • Understand the quantitative approaches and global practices for aggregation of risks at enterprise level
  • A holistic idea on bank wide risk matrices

Understanding ICAAP Supervisory Review Process: Seeing thing from the regulators perspective

  • Principles of ICAAP supervisory process 
  • Principle of Proportionality ICAAP framework 
  • Risk coverage under supervisory review process 
  • Risk assessment and measurement methodology 
  • Capital Allocation principles 
  • Risk Aggregation approaches 
  • Supervisory review of data quality, process controls and consistency in Banks

ICAAP Frame Work

  • Validation and testing of Models and methods of Risk measurement
  • ICAAP documentation, disclosures, interpretation
  • Using ICAAP reports for systemic financial stability and Banking system risk reviews

Risk Managers Association of Nigeria in its quest to promote best practices in risk Management has developed the under listed to impart skills, knowledge and guide the conduct of members and risk management staff who aspire to become professionals.