AUDITING BASEL II/III & RISK MANAGEMENT FOR BANKS
“Strengthening Compliance and Risk Oversight Through Basel Framework Audit Mastery”
Course Schedule
| Date | Venue | Fees (Face-to-Face) |
|---|---|---|
| 20 – 24 Jan 2025 | Dubai, UAE | USD 3495 per delegate |
Course Introduction
Basel II and III frameworks have revolutionized the way banks manage capital, credit, market, and operational risks. Regulatory bodies now expect robust internal audit systems to independently review risk frameworks and ensure compliance with capital adequacy, stress testing, and disclosure standards. This intensive 5-day course equips internal auditors, risk managers, and banking professionals with the competencies to audit Basel II/III frameworks effectively. Participants will learn the key principles, control expectations, and risk exposures under Basel, and how to conduct risk-based audits aligned with regulatory requirements.
Course Objectives
By the end of this course, participants will be able to:
- Understand the objectives and structure of Basel II and Basel III accords.
- Audit compliance with Pillar I (Minimum Capital), Pillar II (Supervisory Review), and Pillar III (Market Discipline).
- Evaluate credit, market, and operational risk frameworks.
- Assess capital adequacy processes including ICAAP and stress testing.
- Conduct risk-based audit planning for banking risk management functions.
- Review internal models and risk-weighted asset (RWA) calculations.
- Provide assurance on Basel reporting, governance, and disclosure.
Why you Should Attend
- Master the auditing requirements of Basel II/III frameworks.
- Strengthen your ability to evaluate internal risk and capital systems.
- Provide value-added recommendations to board and regulators.
- Reduce regulatory compliance gaps and reputational risk.
- Improve the reliability of risk measurement and mitigation systems.
Intended Audience
This program is designed for:
- Internal and external auditors in banking and finance
- Risk and compliance officers
- Bank regulators and supervisory staff
- ICAAP/ILAAP and Basel reporting professionals
- Credit, market, and operational risk managers.
Individual Benefits
Key competencies that will be developed include:
- Basel II/III regulatory knowledge and application
- Internal audit planning for risk and compliance domains
- Capital adequacy assessment and control evaluation
- Stress testing and disclosure review
- Banking audit communication and reporting
Organization Benefits
Upon completing the training course, participants will demonstrate:
- Stronger compliance posture with global Basel standards
- Reduced audit findings from regulators and external reviewers
- Better integration of risk, finance, and compliance functions
- Enhanced credibility of capital and risk disclosures
- Sustainable audit frameworks for financial institutions.
Instructional Methdology
The course follows a blended learning approach combining theory with practice:
- Lectures – Basel structures, control objectives, and auditing practices
- Regulatory Case Studies – Global enforcement and audit failures
- Practical Tools – Risk and control matrices, audit programs
- Group Exercises – Internal audit walkthroughs and reporting
- Peer Discussions – Lessons learned from ICAAP and stress test reviews
- Templates – Audit reports, gap assessments, and Basel self-checks
Course Outline
Detailed 5-Day Course Outline
Training Hours: 7:30 AM – 3:30 PM
Daily Format: 2–3 Learning Modules | Coffee breaks: 09:30 & 11:15 | Lunch Buffet: 01:00 – 02:00
Day 1: Basel Framework Overview and Pillar Structure
Module 1: Basel II/III Overview and Evolution (07:30 – 09:30)
- Historical context and goals of Basel accords
- Differences between Basel I, II, and III
- Relevance to internal audit and risk professionals
Module 2: Pillar I – Minimum Capital Requirements (09:45 – 11:15)
- Credit, market, and operational risk measurement
- Standardized vs. advanced approaches
- Capital buffer requirements and capital conservation
Module 3: Pillar II – Supervisory Review Process (11:30 – 01:00)
- ICAAP framework and audit checkpoints
- Stress testing and internal capital planning
- Key audit red flags in ICAAP reports
Module 4: Audit Exercise – Basel Control Mapping (02:00 – 03:30)
- Mapping internal controls to Basel pillars
- Gap identification and risk prioritization
Day 2: Risk Type Auditing – Credit, Market & Operational Risk
Module 5: Auditing Credit Risk Frameworks (07:30 – 09:30)
- Internal ratings and risk-weighted asset evaluation
- Collateral management and provisioning controls
- Auditing credit risk mitigation and IRB models
Module 6: Auditing Market Risk Controls (09:45 – 11:15)
- Value-at-Risk (VaR) models and back-testing
- Audit of trading book exposures and interest rate risks
- Derivative controls and stress tests
Module 7: Operational Risk Management Audit (11:30 – 01:00)
- Risk and control self-assessment (RCSA) review
- Loss event data and scenario analysis audit
- KRI validation and business continuity alignment
Module 8: Audit Scenario – End-to-End Risk Control Review (02:00 – 03:30)
- Integrated risk management system testing
- Walkthrough audit of risk response procedures
Day 3: Capital Adequacy, ICAAP, and Stress Testing
Module 9: ICAAP Review and Internal Audit Role (07:30 – 09:30)
- ICAAP components and documentation
- Audit scope and sample findings
- Expectations from regulators
Module 10: Auditing Stress Testing Frameworks (09:45 – 11:15)
- Designing audit programs for stress testing
- Scenario selection and model validation
- Data integrity and assumptions review
Module 11: Capital Planning and Contingency Audits (11:30 – 01:00)
- Liquidity and capital contingency reviews
- Risk appetite and capital planning link
- Governance over capital assessment models
Module 12: Group Exercise – ICAAP Audit Simulation (02:00 – 03:30)
- Developing a mini audit plan for ICAAP
- Peer review and gap discussion
Day 4: Pillar III, Disclosures & Regulatory Expectations
Module 13: Pillar III – Market Discipline and Disclosure Audit (07:30 – 09:30)
- Disclosure requirements and audit scope
- Accuracy and transparency of risk reports
- External vs. internal reporting compliance
Module 14: Model Validation and RWA Audits (09:45 – 11:15)
- Internal model governance and assumptions
- Audit of data sources and modeling controls
- Validation reports and challenge processes
Module 15: Regulatory Engagement and Remediation Audits (11:30 – 01:00)
- Findings follow-up and remediation planning
- Reporting to boards and regulators
- Audit committee expectations
Module 16: Basel Internal Audit Toolkit (02:00 – 03:30)
- Audit checklists, templates, and planning sheets
- Documentation standards and archiving protocols
Day 5: Integrated Audit Planning and Final Wrap-Up
Module 17: Integrated Basel Audit Planning (07:30 – 09:30)
- Annual audit plan structuring and priority risk mapping
- Coordinating across risk, compliance, and audit teams
- Dynamic audit approaches and data analytics
Module 18: Final Case Study – Basel III Compliance Audit (09:45 – 11:15)
- Team-based audit walkthrough of Basel compliance
- Use of internal tools and reporting frameworks
Module 19: Challenges and Trends in Risk Auditing (11:30 – 01:00)
- ESG and climate risk considerations
- New Basel IV/CRD-V impact on audit scope
- Future-proofing audit strategy
Module 20: Course Summary, Feedback, and Certification Briefing (02:00 – 03:30)
- Final reflections, open forum, and action plans
Certification
Participants who complete the program will receive a Certificate of Completion in Auditing Basel II/III & Risk Management for Banks, recognizing their capability to audit, evaluate, and enhance compliance with global banking regulatory standards.