CBA OnSite Education: BankCom
CBA OnSite Education: BankCom
This one-of-a-kind, top-down, overall bank simulation highlights critical risk management challenges through the principals of economic value. Participants learn to weigh complex strategic decisions for the bank against risk ramifications and analyst reactions to maximize shareholder value.
Program Learning Objectives
Assess bank performance using the following measures including:
- Accounting-based
- Economic-value-based
- Market-value-based
Assess the quality of a bank’s risk management in the context of enterprise-wide risk management.
Describe the choices available to senior managers to improve bank performance given risk/performance trade-offs while solving to a business plan.
Program Overview
The Scenario | BankCom participants are divided into teams responsible for the operation of a $5+ billion regional bank operating in a competitive, dynamic market. Decisions are made with a focus on achieving desired bank performance based on a business plan crafted by the team. After each decision, new financials are produced, serving as the basis for facilitated discussion. New concepts are introduced prior to the next set of decisions. The session’s capstone is a “shareholder” presentation of results to all participants.
Essentials of BankCom
Bank Accounting, Financial Reporting, and Product Impact, such as:
- Bank Financial Statements Overview
- Understanding ROE -- ROE Decomposition
- Economic Context of Management Strategy
- Deposits, ie Net Deposit Cost and FTP
- Lending Strategy – Products, Profitability and Credit Quality
- Treasury role and sources of funding
Measurement and Management of Key Risks:
- Credit Risk | Including credit policy and products choice and administration; Metrics used in credit risk management; and RAROC-based pricing
- Liquidity Risk | including measuring level of liquid assets and management of securities portfolio; and choice of funding sources
- Market (Interest Rate) Risk | Including Interest rate swaps; Management of durations, Economic Value sensitivity; and Measures for Accounting (gap, NII sensitivity), and Value at Risk (VaR)
- Risk Management and Capital (capital adequacy and CCAR)
- Reinforcement of the interplay between risk appetite and performance
Explore other CBA OnSite curriculum including:
CBA OnSite: Banking Fundamentals
