International Certificate in Banking Risk and Regulation
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Introduction
The role of risk management is becoming more important as both banks and supervisors around the world increasingly recognize that sound risk management practices are vital, not only for the success of individual banks, but also for the banking system as a whole. An important component of this journey towards becoming more risk aware, is education and training. The International Certificate in Banking Risk and Regulation is designed for individuals to develop their knowledge and understanding of the various risks, regulations and supervisory requirements a bank must face in today's environment. Those who work in banking, regulatory agencies, consulting firms, government bodies, central banks and academic institutions will all benefit from this certificate program.
The program was developed as a result of input from risk management practioners from around the world. In a qualitative approach, the International in Certificate in Banking Risk and Regulation presents a studied review of the following:
- Traded Market Risk Management and Regulation
- Treasury Risk Management and Regulation
- Credit Risk Management and Regulation
- Operational Risk Management and Regulation
- Supervision and Regulation
Successful candidates of the International Certificate will demonstrate a knowledge and understanding of risk management methodologies, governance structures for the management of risk in banks, and the regulatory requirements provided by the Basel Committee on Banking Supervision.
Certificate requirements
Candidates for the International Certificate should have both a reasonable understanding and some experience of banking. Therefore they are expected to know terms commonly used in the finance industry.
To obtain the International Certificate in Banking Risk and Regulation, you will be required to pass one exam that consists of 120 multiple choice questions and will last 175 minutes. A candidate will need to answer 80 questions correctly in order to pass.
The Certificate exam can be taken at any time and is given electronically through Pearson VUE test centers located across the world. Details of these test centers can be found on the Pearson VUE web site at www.vue.com/garp.
The material covered in the examination is the following:
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Module specification |
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Title
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An Introduction to Risk and Regulation in Banks
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2. |
Program of study to which module contributes
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International Certificate in Banking Risk and Regulation
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3. |
Intended subject-specific learning outcomes
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On completion of this module, candidates will be able (at a foundation level) to:
Demonstrate an understanding of the risks in banking and the need for banking regulation, the relationship between risk and minimum capital requirements, and the risk-based regulatory framework.
Demonstrate an understanding of the methods for the measurement and management of traded market risk and the regulatory requirements for managing market risk and establishing minimum capital requirements
Demonstrate an understanding of the requirement for the measurement and management of treasury risk in banking in particular liquidity risk and interest rate risk in the banking book, and the ways in which the treasury function should ensure that minimum capital requirements are maintained.
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Summary of module content |
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Part A:
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Banking risk and regulation
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Chapter 1:
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The nature of risk and regulation in banking
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Chapter 2:
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The history of risk-based regulation of banks
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Chapter 3:
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The evolution of risk management and regulation in banking
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Part B:
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Traded market risk management and regulation
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Chapter 4:
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The nature of market risk
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Chapter 5:
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The measurement and regulation of market risk
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Chapter 6:
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The Standardised Approach to measuring market risk
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Chapter 7:
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The Internal Models Approach to measuring and managing market risk
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Part C:
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Treasury risk management and regulation
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Chapter 8:
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The nature of market risk
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Chapter 9:
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Interest rate repricing in the banking book
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Chapter 10:
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Methods for measuring and managing liquidity risk
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Chapter 11:
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Capital management and treasury risk
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Module specification |
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1. |
Title
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Banking Risks – Measurement, Supervision and Disclosure
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2. |
Program of study to which module contributes
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International Certificate in Banking Risk and Regulation
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3. |
Intended subject-specific learning outcomes
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On completion of this module, candidates will be able (at a foundation level) to:
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Demonstrate an understanding of the methods for the measurement and management of credit risk and the regulation of minimum capital requirements.
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Demonstrate an understanding of the methods for the measurement and management of operational risk and the regulation of minimum capital requirements.
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Demonstrate an understanding of the requirement for the supervision of banks and the disclosure of market information.
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Summary of module content |
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Part D:
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Credit risk management and regulation
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Chapter 1:
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The development of risk-based supervision of banks
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Chapter 2:
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Basel II and the international regulation of banks
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Chapter 3:
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The nature of credit risk
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Chapter 4:
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The approaches for calculating credit risk capital
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Chapter 5:
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The Standardised Approach to measuring credit risk
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Chapter 6:
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The Internal Ratings-Based approaches to measuring credit risk
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Chapter 7:
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Collateral and securitization
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Part E:
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Operational risk management and regulation
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Chapter 8:
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The nature of operational risk
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Chapter 9:
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The approaches for calculating operational risk capital
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Chapter 10:
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The Basic Indicator Approach to measuring operational risk capital
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Chapter 11:
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The Standardised Approach to measuring operational risk capital
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Chapter 12:
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The Advanced Measurement Approach to measuring operational risk capital
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Chapter 13:
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Managing operational risk
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Part F:
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Supervision and regulation
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Chapter 14:
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The supervisory review process
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Chapter 17:
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The role of national supervisors
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Chapter 16:
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Supervision of operational risk and ‘other’ risks
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Chapter 17:
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Bank disclosure requirements
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Certification Preparation Tools
You have the option of purchasing the 2 study guides and access to GARP's e-learning program when you register for the exam.
Study Guides
When you register, you have the option of purchasing the study guides with material that coincides with the exam you will later be taking. The study guides were designed to have easy to follow lessons, practical examples, case studies, and chapter summaries. There are also multiple sample questions for each chapter, which will help you in preparation for the exam.
GARP’s E-Learning Program
GARP provides a program which will enable you to study during travel on your personal laptop or anywhere with internet access. The GARP E-Learning experience will provide you with all the same advantages as the study guides as well as sample chapter quizzes which will thoroughly prepare you for the upcoming exam.
