Regulation and supervision of non-financial risks Course level II
24 March 2023
While financial risks such as credit risk and market risk have dominated the supervisory landscape for decades, the regulation and supervision of non-financial risks in banks has begun to attract more attention in the last years. From the implementation of operational risk in the Basel II framework in 2004 to more recent initiatives such as environmental, social and governance risks (ESG risks), the regulatory landscape is starting to shift towards risks that warrant stronger management rather than hard capital requirements.
This course aims to inform participants about regulatory standards for non-financial risks and the treatment of these risks in banks. The presenters will include both practitioners and rulemakers in order to give participants a holistic view of the concept of non-financial risks.
Participants should be prepared to discuss initiatives in their countries and also be able to shed light on non-financial risks that are uncommon in the euro area.
- Overview of non-financial risks
- Operational risk, conduct risk and compliance risk
- Reputational risk
- Information and communication technology (ICT) risk
- Outsourcing risk
- Business continuity management
- Environmental, social and governance (ESG) risk
- The three lines of defence concept
- Business and strategic risk
- Pillar II requirements for non-financial risks in the ICAAP
The level II course is aimed at experts from central banks and supervisory authorities involved in the implementation of Basel III and the supervision of non-financial risks, both from an on-site and off-site perspective. Participants should be familiar with the supervision policies and practices of their financial system and be prepared to actively contribute to the discussions.
A nominating person is mandatory for the participation in our in-person courses.