IIF GLOBAL SEMINAR

RISK APPETITE FRAMEWORKS AND STRESS TESTING September 28-29, 2016 | London, United Kingdom

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COURSE DESCRIPTION

RISK APPETITE FRAMEWORK AND STRESS TESTING

IIF GLOBAL SEMINAR:

RISK APPETITE FRAMEWORKS AND STRESS TESTING

Globally, boards and executives are allocating increasing

resources towards embedding risk appetite frameworks and

stress testing models to strengthen their businesses. This

timely seminar will provide an overview of the emerging

trends in risk appetite framework development,

implementation, and stress testing as practiced by leading

experts.

The first day's sessions will address, from industry and

regulatory viewpoints, how to overcome challenges related

to designing and implementing a risk appetite framework.

Innovative methods for embedding risk appetite, including

the important element of non-financial risks, will be a key

focus. On day two, experts will discuss the latest industry

trends and techniques on stress testing and how to best

integrate these into both group-wide and subsidiary risk

management strategies. Leadership approaches will be a

key discussion theme, as well as the evolving role of board

and risk management functions.

With a focus on practical examples from global firms and

an emphasis on interactive discussion, this seminar will

provide excellent opportunities to benchmark and

exchange sound practices with global peers.

LEARNING OBJECTIVES

Discuss global trends in risk

appetite frameworks and

stress testing

Consider policy and

regulatory developments

related to risk appetite and

stress testing

Overcome leadership

challenges and emerging

risks

Consider change

management and

implementation strategies

Exchange sound practices

with global peers

SEMINAR FACTS

Date: September 28-29, 2016

Location: London

Venue: Ernst & Young Canary Wharf offices

CPD/CE: 12 hours

Program Fee: - Member Firm $2000 (USD) - Non-Member Firm $3000 (USD)

This seminar will be eligible for CPD/CE credits through the Chartered Institute for Securities & Investment (CISI), the CFA Institute, the Global Association of Risk Professionals (GARP), the International Compliance Association (ICA) and the Chartered Banker.

REGISTER AT

IIF.COM/TRAINING

Registration is open up to

one week prior to

program start date or until

capacity is reached.

Capacity limitations may

force some programs to

close registration early.

IDEAL FOR SENIOR PROFESSIONALS IN:

Risk

Policy

Treasury

Compliance

Finance

PLEASE JOIN US IN

LONDON TO TAKE

ADVANTAGE OF THIS

UNIQUE OPPORTUNITY.

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3 RISK APPETITE FRAMEWORK AND STRESS TESTING

WEDNESDAY

SEPTEMBER 28

8:30 am—9:00 am REGISTRATION

9:00 am—9:15 am WELCOME AND INTRODUCTION Kate Hudson Director, Global Training, IIF

9:15 am—10:30 am SESSION 1: DESIGNING RISK APPETITE EFFECTIVELY AND EMBEDDING IT

Better aligning risk appetite, strategy and capital allocation

Link to reverse stress testing

Embedding risk appetite in business decisions

Andrew Duff, Risk Appetite Lead EY

10:30am—11:00 am COFFEE BREAK

11:00am—12:30pm SESSION 2: REGULATORY VIEW OF RISK APPETITE Global regulatory overview

Links to overall risk governance

Q and A

David Rule, Executive Director, Prudential Policy, Bank of England

12:30 pm—1:30 pm LUNCH

1:30 pm—2:30 pm SESSION 3: IMPLEMENTATION STRATEGIES, AND LEADERSHIP SKILLS ESSENTIAL TO RISK APPETITE FRAMEWORK

Developing the right strategy and ensuring appropriate skills

Process, infrastructure, and environment, including risk culture

Governance and changes in risk culture

Impact of innovation

Group Discussion

tbd

2:30 pm—3:45 pm SESSION 4: PRACTICAL STEPS –INCLUDING NON-FINANCIAL RISK IN RISK APPETITE

Designing measures - do they influence behavior?

Case study

Patricia Jackson, Senior Advisor, EY

3:45 pm—4:15 pm COFFEE BREAK

4:15 pm—5:30 pm SESSION 5: PANEL—OVERCOMING PRACTICAL CHALLENGES FACED WHEN IMPLEMENTING FRAMEWORKS

Setting up a risk appetite framework

Challenges faced by various banks

A focus on the supervisory requirements

Speakers from above (and Chris Devlin, Executive Director Risk Management Division for EMEA, MUFG)

5:30 pm—7:00 pm DRINKS AND NETWORKING RECEPTION

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THURSDAY

SEPTEMBER 29

RISK APPETITE FRAMEWORK AND STRESS TESTING

9:00 am—10:15 am SESSION 6: LATEST TRENDS AND TECHNIQUES ON STRESS TESTING

Central models

The balance sheet and income statement projections

Challenges and solutions

Gerald Chappell, Partner, EY

10:15 am—10:45 am COFFEE BREAK

10:45 pm—12:15 pm SESSION 7: INTEGRATING STRESS TESTING INTO RISK APPETITE AND GROUP-WIDE RISK MANAGEMENT

Governance approaches: group approach for implementation

Challenges to implementation

Ilinka Kajgana, Head of Group ICAAP and RWA, Erste Group Paulina Niedzwiecka, Head of Group Risk Appetite & Limit Steering, Erste Group

12:15 pm—1:15 pm LUNCH

1:15 pm—2:00 pm SESSION 8: EMBEDDING STRESS TESTING WITHIN A SUBSIDIARY– OBSTACLES AND OPPORTUNITIES

Governance approaches: subsidiary approach for implementation

Challenges to implementation

Chris Devlin, Executive Director Risk Management Division for EMEA, MUFG

2:00 pm—2:30 pm SESSION 9: GROUP DISCUSSION—GROUP V. SUBSIDIARY

Speakers from Sessions 7 & 8

2:30 pm—3:00 pm COFFEE BREAK

3:00 pm—3:45 pm SESSION 10: QUALITY ASSURANCE AND MODEL VALUATION Case studies from the industry

Russell Brooks, Head of Stress Testing Assurance, RBS

3:45 pm—4:45 pm SESSION 11: PANEL DISCUSSION—THE EVOLVING ROLE OF THE BOARD AND RISK MANAGEMENT FUNCTIONS

Moderated by IIF

Russell Brooks, RBS

Hedwige Nuyens, Managing Director, IBFED

4:45 pm—5:00 pm CONCLUDING REMARKS AND WRAP UP

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SPEAKER PROFILES

RISK APPETITE FRAMEWORK AND STRESS TESTING

Kate Hudson, Director, Global Training, Institute of International Finance

Kate is the Director of IIF’s Global Training team, and previously a Policy Adviser for IIF’s Regulatory

Affairs team. Prior, she was a senior manager at the RBS Group Holding Company and a member of

the BBA’s Committee for Financial Inclusion. There she authored eleven new conduct risk policies

(including the UK’s first ever corporate policy on dealing with customers in vulnerable situations”);

and oversaw their implementation and training in their businesses (Coutts, Natwest, Citizens, M&IB

etc). Contracting for ComPeer Ltd, on their project board she quantified the costs of compliance in

the UK’s wealth management industry. Serving the UK’s WMA as Senior Policy Advisor, present on

their Board she helped to secure their first early day motion in Parliament. Prior, a compliance

planning officer for MMC, and here nominated a “Future City Leader” by the City of London

Mayor’s office. A compliance manager for ACE Ltd, and a conduct policy development executive

for BUPA Group- and then member of UK’s ILAG Regulatory Committee. Kate is a Mediator (DC

Superior Court) and holds a Postgraduate Diploma in MSc Financial Regulation and Compliance

Management at London Metropolitan University, and a L.L.B. in European Legal Studies from the

University of Westminster. She is also fluent in Spanish.

________________________________________________________________________________________

Patricia Jackson, Senior Advisor, Ernst & Young

Patricia Jackson is a member of the EY Global Regulatory Network in the Financial Services Risk

Management Group. Patricia joined EY in 2004 as the Partner leading the banking risk practice and

then later financial regulatory advice. She was involved in projects with the major banks globally on

all the risk types as well as Basel III and stress testing. She is also increasingly involved in risk

governance issues including developing an approach to setting and embedding risk appetite and

risk culture. She is now a strategic adviser to EY. Prior to this she was the Head of the Financial

Industry and Regulation Division in the Bank of England and represented the UK on the Basel

Committee for Banking Supervision for 7 years, leading the global QIS studies and calibration of

Basel II. Patricia has published a wide range of papers on market and credit risk and bank capital.

She is a non-executive director on the board of the digital challenger bank Atom and is involved in

setting their strategy going forward.

________________________________________________________________________________________

Ilinka Kajgana, Head of Group ICAAP and RWA, Erste Group Bank AG

Presently, Dr. Kajgana is responsible for the Group ICAAP and RWA. Dr. Kajgana and her teams

focus primarily on standardization of these frameworks across Erste Group to attain permanent

improvement in measurement and steering standards, to complement risk appetite, risk strategy

and strategic limit framework. Over past 10 years Dr. Kajgana has executed various management

functions in Strategic Risk Management introducing best practice and industry standards. Dr.

Kajgana holds a PhD in Physics from the University of Technology in Vienna.

________________________________________________________________________________________

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SPEAKER PROFILES

RISK APPETITE FRAMEWORK AND STRESS TESTING

Paulina Niedzwiecka, Head of Group Risk Appetite & Limit Steering, Erste Group Bank AG

Paulina is currently the Head of Group Risk Appetite and Limit Steering in Enterprise-wide Risk

Management at Erste Group in Vienna. In this role, she is responsible for group-wide

implementation and oversight of risk appetite, risk strategy and strategic limit framework. She and

her team cooperate with risk and capital management functions as well as the business to ensure

proper embedding of risk appetite and strategic limits into governance, risk management processes

(i.e. ICAAP and stress testing) and daily operations to drive decision making at all levels of

organization. Prior to joining Erste Group, Paulina worked at several banks, consulting firms and

financial institutions in Germany, US and Mexico setting up risk management functions and leading

change-the-bank initiatives. Paulina holds a Master in Banking and Finance from the Warsaw School

of Economics.

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