Adapt recognised practice on advanced financial modelling to local constraints without hollowing it out.
Building Advanced Financial Models
Develop the judgement and the documentation needed to run advanced financial modelling properly.
Course Overview
Growth built on poorly controlled advanced financial modelling reverses faster than it accumulated. Regulators no longer accept intent as evidence of control over the practice within financial and banking practice. Teams frequently over-invest in documenting the financial and banking practice discipline and under-invest in testing it. They gain the ability to sequence improvements to advanced financial modelling in an order their organisation can absorb. Work is grounded in real cases drawn from the wider financial and banking practice agenda, which each participant adapts to conditions in their own organisation. The programme works equally well for those formalising this area of financial and banking practice for the first time and those improving an existing approach. The programme converts advanced financial modelling from an area of general awareness into a set of repeatable practices. Organisations that document the practice within financial and banking practice properly resolve disputes about it far more quickly. The course ends by identifying what the participant will stop doing to make this aspect of financial and banking practice sustainable.
Expected Learning Outcomes
Apply the relevant accounting and disclosure treatment to advanced financial modelling.
Prepare a short, evidence-based briefing on advanced financial modelling for senior management.
Build the client due diligence and monitoring appropriate to advanced financial modelling.
Document decisions about advanced financial modelling in a form that remains useful after the people change.
Build the control framework around advanced financial modelling that an examiner would accept.
Review the contractual and legal exposure created by advanced financial modelling.
Who Should Attend
Risk managers assessing the exposure created by advanced financial modelling.
Board risk committee members overseeing advanced financial modelling.
Staff seconded into improvement work on advanced financial modelling.
Treasury and asset-liability staff managing advanced financial modelling.
Relationship and product managers whose targets depend on advanced financial modelling.
Finance managers reporting on advanced financial modelling.
Course Modules
Advanced financial modelling: pricing, profitability and risk-adjusted return
2 sessions · 8 pointsSession 1Escalation and decision rights in advanced financial modelling
- Agree what will be standardised in advanced financial modelling and what will not.
- Prepare the response for the most likely failure in advanced financial modelling.
- Prepare the evidence pack demonstrating advanced financial modelling operated as designed.
- Document the remediation plan for each known weakness in advanced financial modelling.
Session 2Setting a limit on advanced financial modelling that will actually be respected
- Set out the decisions in advanced financial modelling that require sign-off and by whom.
- Confirm client due diligence standards applied to advanced financial modelling are current.
- Anticipate the objections advanced financial modelling will raise and prepare the answers.
- Identify the data already collected that bears on advanced financial modelling.
Advanced financial modelling: the control framework and segregation of duties
2 sessions · 8 pointsSession 1What advanced financial modelling does to capital and liquidity under stress
- List the assumptions in any model supporting advanced financial modelling and when each was last challenged.
- Set out how exceptions to advanced financial modelling are requested and approved.
- Define the trigger that would require advanced financial modelling to be redesigned.
- Record what was learned when advanced financial modelling did not go as planned.
Session 2The control on advanced financial modelling that looks strong and is not
- Translate the appetite for advanced financial modelling into limits someone monitors daily.
- Identify the key controls over advanced financial modelling and who tests them.
- Check the accounting treatment applied to advanced financial modelling against current standards.
- Plan the sequence in which improvements to advanced financial modelling will be introduced.
Advanced financial modelling: audit evidence and examiner readiness
2 sessions · 8 pointsSession 1Handling a breach of policy on advanced financial modelling properly
- Test advanced financial modelling against a scenario the organisation would rather not model.
- State the risk appetite for advanced financial modelling as a number, not an adjective.
- Assign responsibility for keeping documentation of advanced financial modelling current.
- Verify reconciliation and settlement controls covering advanced financial modelling.
Session 2What has to be agreed before work on advanced financial modelling starts
- Confirm segregation of duties across initiation, approval and settlement of advanced financial modelling.
- Confirm regulatory reporting on advanced financial modelling is complete, timely and reconciled.
- Identify where judgement in advanced financial modelling is legitimate and where it is not.
- Define acceptance criteria for advanced financial modelling in advance.
Advanced financial modelling: risk appetite, limits and policy
2 sessions · 8 pointsSession 1Making advanced financial modelling work when resources are constrained
- Establish the boundary of advanced financial modelling and record what sits outside it.
- Confirm reporting on advanced financial modelling reaches the committee that can act on it.
- Design the exception process for advanced financial modelling and require a documented rationale.
- Review concentration by counterparty, sector and geography inside advanced financial modelling.
Session 2The assumption inside the model for advanced financial modelling that nobody revisits
- Check the legal and contractual exposure created by advanced financial modelling.
- Agree the smallest change to advanced financial modelling that would be visibly useful.
- Establish what evidence demonstrates advanced financial modelling is under control.
- Establish who is informed, consulted and accountable in advanced financial modelling.
Choose the package that suits you
Silver Package
At least 3 people
- Workshop or Program Participation
- Airport Transfers
- Customized Badge
- Expert Mentorship (Private Sessions)
- Supervision & Secretarial Services
- Accredited Certificate of Participation
- Complete Training Kit
- Coffee Break
- Closing Ceremony
Gold Package
At least 3 people
- 5-night stay in a 5-star hotel
- Workshop or Program Participation
- Airport Transfers
- Customized Badge
- Expert Mentorship (Private Sessions)
- Supervision & Secretarial Services
- Accredited Certificate of Participation
- Complete Training Kit
- Coffee Break
- Closing Ceremony
Complete your registration
We will contact you within one business day to confirm.