Introduction
The programme “The Role of Banking Supervision in Financial Crisis Management” develops professional practice in Risk and Credit. It connects the subject with workplace challenges by examining existing evidence and practices and choosing methods appropriate to the organization and its available resources.
The learning progresses from crisis management, communication, and response to risk assessment, controls, and response, with practical work on risk-based auditing and evidence gathering, financial statement and report analysis, credit analysis and banking risk. Participants prepare outputs to support workplace application and review the quality and results of implementation.
Learning objectives
- Prepare a crisis response and communication plan covering roles, messages, and escalation in an application related to “The Role of Banking Supervision in Financial Crisis Management”.
- Design an audit engagement connecting risks, objectives, tests, and evidence.
- Interpret performance, financial position, and cash flows using documented analysis with clear limitations.
- Prepare a credit analysis and risk scenario showing repayment capacity and controls.
- Prepare a risk register connecting causes, consequences, controls, and treatment responsibilities.
Learning areas
1. Crisis Management, Communication, and Response
- Identify crisis scenarios, warning indicators, and effects on people, services, and reputation, and define response activation thresholds.
- Allocate crisis team roles, decision-making authority, and escalation paths, and establish a mechanism for collecting and updating verified information.
- Draft an initial message explaining confirmed facts, actions, and update channels, avoiding speculation or disclosure of sensitive information.
- Run a simulation involving changing information, time pressure, and multiple parties, recording decisions, their rationale, and their timing.
- Conduct a post-crisis review comparing the plan with execution, and define improvement actions, owners, and dates for retesting readiness. The application examines a case related to “The Role of Banking Supervision in Financial Crisis Management”.
2. Risk-Based Auditing and Evidence Gathering
- Define the engagement subject, objectives, scope, and assessment criteria, and develop an initial understanding of the process and its main risks.
- Assess control design and suitability for the objectives, and select tests and samples proportionate to risk levels and available data.
- Collect sufficient, appropriate evidence, document sources and verification procedures, and maintain independence, objectivity, and information confidentiality.
- Write a finding connecting the criterion, condition, cause, and effect, and discuss the response and agreed action with the relevant party.
- Prepare a clear report and action follow-up plan, applying current professional requirements relevant to the audit type and work environment.
3. Financial Statement and Report Analysis
- Read the relationships between the statements of financial position, performance, and cash flows and the notes, identifying the effects of accounting policies and estimates.
- Perform horizontal and vertical analysis and compare profitability, liquidity, efficiency, and leverage indicators, considering the nature and size of the business.
- Examine earnings quality, cash flows, and nonrecurring items, and identify differences between accounting results and actual liquidity.
- Test the sensitivity of results to changes in sales, costs, collections, and financing, stating the assumptions and constraints in each scenario.
- Write a financial report linking indicators to management's question and available alternatives, presenting risks and additional data needed for the decision.
4. Credit Analysis and Banking Risk
- Analyze the financing purpose, repayment sources, and nature of the business, and review the financial and nonfinancial data needed to assess the customer.
- Assess cash flows, debt servicing capacity, and collateral, distinguishing the primary repayment source from supplementary protections.
- Classify relevant credit, market, liquidity, and operational risks, considering the applicable regulatory framework and internal policies.
- Test the effects of changes in revenues, prices, and maturities on repayment capacity, and define conditions and monitoring requirements addressing the identified risks.
- Prepare a documented recommendation covering limits, assumptions, information gaps, and warning indicators without turning the training case into an actual financing decision.
5. Risk Assessment, Controls, and Response
- Define the work context, objectives, and assessment boundaries, and distinguish the risk source, potential event, and effects on results.
- Gather risks from processes, data, past incidents, and interviews with responsible staff, and document causes and existing controls.
- Estimate likelihood and impact using stated criteria, and review control effectiveness to determine residual risk levels.
- Select a response proportionate to the risks, resources, and authority, and specify the owner, deadline, and early warning indicator.
- Test a scenario involving changing circumstances, update the risk register, and present material risks and required decisions to the appropriate authority.
Practical outputs
- A crisis plan, decision register, initial statement template, and simulation exercise.
- An audit engagement program, working papers, and an actionable finding.
- A comparative financial analysis report and a memo of findings and assumptions.
- A credit memo, risk register, and early warning indicators.
- A risk register, control matrix, and prioritized treatment plan.
Who should attend
- Practitioners, specialists and supervisors whose work relates to the programme subject.
- Managers and teams working in risk and credit, according to their practical responsibilities.
- Professionals responsible for applying the outputs of “The Role of Banking Supervision in Financial Crisis Management” within their organizations.
Prerequisites
- Working familiarity with the programme field and the ability to discuss a professional case or challenge.
- Confirm the suitability of your experience and any specialist prerequisites with the Union before participation.
Conclusion
The programme “The Role of Banking Supervision in Financial Crisis Management” brings together concepts, case review and a practical application. Participants prepare steps that can be adapted to their responsibilities and organizational resources, with an indicator to follow application and review results after returning to work.
Participation arrangements and any special requests are specified in the confirmation issued by the Union.