Bank Risk Primer Including Risk-Weighted Assets, Capital Tiers, CCAR and Living Wills



This training program will describe how banks systematically determine individual and corporate borrower creditworthiness and use tools and procedures to mitigate such primary risk. In addition, a bank’s internal mechanisms to rank its assets according to risk will be discussed. Many of the regulatory requirements imposed on banks over the past three years have targeted minimizing a bank’s risk-weighted asset exposure by increasing the amount of bank capital required for riskier assets.

Why Should You Attend:
This webinar will help participants acquire a better understanding of the varied risks banks face and ways in which they address and mitigate these risks to their business. Further, they will be exposed to the manner in which the sector deals with ever-increasing regulatory and shareholder pressure to effectively manage risk. Participants’ knowledge of the risk drivers and resulting impact on the types of assets banks hold and the amount of required capital could help in optimizing you’re their future dealings with the U.S. commercial banking sector.

Learning Objectives:
Learn how commercial banks identify, quantify, address and monitor the inherent risks in their business through an organized process called risk management.
Understand the ever-expanding role and responsibilities of risk managers in banks.
Understand types of bank risks and popular risk mitigants.
A view of the economic, competitive and regulatory drivers that will affect bank risk over near and intermediate terms.

Areas Covered in the Webinar:
Core functions of risk management groups
Types of bank risk including: credit, market, liquidity, operational, and reputation
Scope of impact of the risk management function in banks
Key aspects of the role and key players involved in risk management
Bank funding strategy and its impact on types of products offered
Risk-weighted assets and effect on bank capital
Stress-testing of balance sheet, i.e. Comprehensive Capital Analysis and Review (CCAR)
Living Will
Enterprise risk management
Bank regulators and banks’ compliance with regulations
Basel III (international standards) compliance

Who Will Benefit:
Commercial bankers – VP and AVP levels
Bank chief credit / risk officers
Bank chief lending officers and their staff
Professional service providers and vendors to commercial banks
Borrowers and businesses that rely on banks for services

Instructor Profile:
Joe Mormak is an independent risk consultant and advisor in the financial service sector specializing in providing critical loan review, lending and underwriting process and procedure recommendations, and analysis of corporate, commercial real estate and multi-family housing obligors. Mr. Mormak is a seasoned banker and risk management executive with over 25 years’ experience in commercial lending, corporate finance, capital markets and investment banking. From 2001 to 2011 he managed a portfolio of complex global corporate loans, both bi-lateral and syndicated, and derivatives for Dresdner Securities. He headed Dresdner’s auto manufacturing risk team in North American from 2004 to 2011 and contributed to its global auto sector strategy. He is acknowledged by KPMG in its national risk advisory practice for delivering efficient analysis of client’s risk ratings, impairment calculations and their lending policies and procedures. Mr. Mormak has experience in evaluating global institutions and regional and community banks.
Mr. Mormak is a formally-trained credit risk professional; effective chief credit officer and risk team leader; and credit risk ratings subject matter expert. He is experienced in: counterparty credit risk, distressed debt remediation and recovery, client relationship management, loan documentation, loan portfolio evaluation / due diligence; and an effective negotiator and deal closer.
He holds an MBA from The Wharton Graduate Division of the University of Pennsylvania with a concentration in capital markets and a BA in Finance, with honors, from Lehigh University.

Topic Background:
Commercial banks are the primary financial service providers in the U.S. and are the most important engine that drives the U.S. economy. Many business and government leaders feel banks played a major role in precipitating the U.S. financial crisis of 2008. As a result this has focused attention on an individual bank’s internal risk management tools, policies and procedures in order to ascertain if the U.S. banking sector, as a whole, can manage the inherent risks in its business.
Since the late portion of the financial crisis the U.S. Congress has implemented extensive new bank controls and regulations in order to increase this sector’s perceived safety and to reduce the chance for similar wide-spread financial and economic calamity. In addition, the three U.S. major bank regulators, i.e., U.S. Federal Reserve Bank (FRB), the Comptroller of the Currency (OCC), and the Federal Deposit Insura

Ad Reference ID: 68855d1727494493

Report problem

Processing your request, Please wait....

Leave a Reply