Training Objectives

By the end of the programme, participants will:

• Understand the fundamentals of Risk Appetite Frameworks (RAFs) and their strategic significance.
• Comprehend ECB and CBC guidelines for risk management in the banking sector.
• Explore ESMA and CySEC requirements for risk appetite in financial and investment entities.
• Identify key differences and overlaps across regulatory frameworks.
• Develop risk appetite statements aligned with organisational objectives and compliance standards.
• Define and monitor Key Risk Indicators (KRIs) to track risk levels effectively.
• Integrate RAF into governance, risk, and compliance structures across sectors.
• Navigate the challenges of applying RAF in multi-regulated entities.
• Leverage practical tools and techniques for designing scalable and adaptable RAFs.
• Apply learned concepts through case studies and real-world examples.

Training Outline

Part 1: Foundations of Risk Appetite Framework

Introduction to Risk Appetite

• Definition and importance of RAF
• Strategic alignment with business goals

Core Concepts

• Risk appetite, tolerance, and limits
• Key risk indicators (KRIs)

Part 2: ECB and CBC Regulations on Risk Appetite

ECB Regulatory Expectations

• RAF requirements in the Single Supervisory Mechanism (SSM)
• Governance and Oversight Standards

CBC-Specific Guidelines

• Risk appetite in the Cypriot banking sector
• Compliance and reporting obligations

Practical Applications

• Case study: Implementing RAF in a diversified banking institution
• Interactive exercise: Drafting risk appetite statements

Part 3: ESMA and CySEC Regulations on Risk Appetite

ESMA’s RAF Frameworks

• Risk appetite in investment firms and financial markets
• Linkages with MiFID II and IFRS standards

CySEC Guidance for Focused Entities

• Simplifying RAF for smaller organizations
• Compliance with CySEC’s risk management protocols

Practical Applications

• Case study: RAF in asset management firms
• Interactive exercise: Establishing KRIs for focused entities

Part 4: Cross-Referencing and Integration of Regulations

Common Themes Across ECB, CBC, ESMA, and CySEC

• Governance and accountability
• Metrics and thresholds for diverse sectors

Integrated RAF Design

• Tailoring RAF for entities under multiple jurisdictions
• Monitoring and reporting risk across frameworks

Who Should Attend

• Risk and Compliance Officers in banking and financial markets
• Chief Risk Officers (CROs)
• Senior Executives in regulated financial entities
• Professionals involved in governance, risk, and compliance under ECB, CBC, ESMA, and CySEC frameworks

Training Style

The training style is interactive, combining lectures, real-life case studies, group discussions, and practical exercises. Participants will engage in scenario analysis and risk assessment simulations to solidify their understanding of operational risk management.

CPD Recognition

This programme may be approved for up to 6 CPD units in Financial Regulation. Eligibility criteria and CPD Units are verified directly by your association, regulator or other bodies which you hold membership.

In-house Training

For groups within the same organisation, this course may be customized to meet any specific needs and delivered in-house.