Models supporting risk-based portfolio diversification fail quietly, and usually at the worst moment. Growth built on poorly controlled the financial and banking practice capability reverses faster than it accumulated. Teams frequently over-invest in documenting the financial and banking practice discipline and under-invest in testing it. Participants develop a defensible line of reasoning for the choices they make about risk-based portfolio diversification. The method assumes participants will be challenged on their handling of this aspect of financial and banking practice and prepares them for it. It suits anyone whose decisions touch the practice within financial and banking practice, in large organisations and small ones alike. Benchmarking exercises repeatedly place risk-based portfolio diversification among the areas with the widest performance spread. This programme builds this aspect of financial and banking practice from first principles, without padding and without omitting what matters. The course ends by identifying what the participant will stop doing to make this area of financial and banking practice sustainable.
Expected Learning Outcomes
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Define the risk appetite applying to risk-based portfolio diversification and translate it into operating limits.
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Establish what evidence would demonstrate that risk-based portfolio diversification is under control.
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Plan the remediation route when a weakness in risk-based portfolio diversification is identified.
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Plan the handover of risk-based portfolio diversification so that capability is not lost when key staff move on.
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Translate policy on risk-based portfolio diversification into procedures that hold up under day-to-day pressure.
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Validate the assumptions inside any model supporting risk-based portfolio diversification.
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Stress test risk-based portfolio diversification against scenarios that are plausible rather than comfortable.
Who Should Attend
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Operations staff executing and settling risk-based portfolio diversification.
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Internal auditors reviewing the controls around risk-based portfolio diversification.
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Internal auditors reviewing how risk-based portfolio diversification is designed and operated.
