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With increasing regulatory focus on the safety and soundness of Credit Unions, it is crucial that you understand the regulator’s risk appetite expectations, particularly as they change as your credit union grows. Risk appetite remains one of the risk ‘holy grails’ and it is important that credit unions implement the requirements in a way that is meaningful to their business and not just treat it as a compliance exercise.

This online course will first consider why risk appetite is important and then explore the regulator’s role in supervising credit unions before detailing the Prudential Regulation Authorities appetite expectations. We will also consider potential cliff effects and how you might apply risk appetite and risk tolerance to your credit union.
 
With the regulator flagging the consequences of poor risk management and/or governance as potentially insolvent wind-up, solvent wind-down, or the transfer of engagements to another credit union, this is an important time for credit unions to ensure they have an effective and efficient risk appetite. A risk appetite that meets regulatory expectations is an important indicator of good risk management.

Attending the course will enable participants to understand the role of the regulator, the PRA’s risk appetite expectations, how risk appetite and risk tolerance can be defined, the cliff effects involved in meeting regulatory expectations and how to manage them.

Topics covered:

An introduction to Risk Appetite
    a. Personal risk appetite - spare tyre
    b. Interactive component - why do we capture risk appetite
    c. Breakout session - why is risk appetite important

Basel Committee on Banking Supervision (BCBS)
    a. Who are they?
    b. Why are they relevant?
    c. Role of the Principles for Sound Management of Operational Risk (PSMOR)

Prudential Regulation Authority (PRA)
    a. Who do they regulate?
    b. What is their role?

SS2/23
    a. Risk appetite requirements
    b. Avoiding cliff effects
    c. Comparing regulatory expectations to delegates asset size

What is risk appetite and risk tolerance?
    a. Interactive - which approach have you adopted?

Cascade from a generic risk appetite

Breakout session - How might we apply risk appetite?

Interactive - delegate takeaways
 
Aimed at: 
The course is aimed at senior managers and Board members of credit unions.

Due to the nature of the training places on this course are limited.

Cancellation policy

Course trainer:
Andrew Sheen is best known for the years he spent at the UK regulator, firstly in the FSA and subsequently at the PRA.  In his time with these authorities Andrew was manager of the Operational Risk Policy Team before heading the team responsible for providing Operational Risk and Governance subject matter expertise to supervisors. Andrew represented the UK regulator on the BCBS and EBA Operational Risk working groups. As a member of the Basel Committee for Banking Supervisors Operational Risk Working Group Andrew was actively involved in the teams drafting a number of BCBS papers including ‘The Principles for the Sound Management of Operational Risk’ (June 2011). 
 
Since leaving the regulator Andrew has held second line risk roles at HSBC and Credit Suisse and, since retiring, he has focused his attention on providing risk advisory and training services to financial institutions.