The program consists of a combination of two parts: a conceptual and a practical part.
The conceptual part includes discussions, case studies and exercises on several theoretical and practical aspects of financial and general management in a universal bank. During these conceptual sessions our trainers share their real banking experience with participants. The practical part includes the use of the BankSim banking simulation program. The computer-based bank management simulation program depicts a typical full-service universal bank. A number of banks compete against each other, creating a realistic banking environment. Participants experience the consequences of taking major management decisions within a given timeframe, called a “period”. Each period is the equivalent of three months (quarter of a year). The banks conduct various banking activities in order to grow their loans, deposits, investment portfolios and other businesses in the marketplace.
Objectives
- To provide an understanding of the overall strategy of a bank
- To gain insight into key decisions in banking
- To understand the interdependence between business areas and the effect of decisions on financial performance
Content
- Mix between concepts and practice with practical implementation of concepts in BankSim Simulation
- Concepts are given as traditional lectures - For BankSim practical sessions, participants are divided in small management teams.
- The following specific banking activities are included in the simulation
- Liquidity Risk Management
- Credit Risk Management
- Distribution Channel management
- Private banking activities
- Investment banking activities
- Savings- and Certificates of Deposits
- Capital Account Management following Basel I or Basel II regulation
- Off-Balance Sheet items
- The following quarterly results (output) are produced by the simulation program:
- Tutor Report;
- Bank’s own Financial Statements, comprising of:
* Balance Sheet;
* Income Statement;
* Notes to the Financial Statements (including a Financial Analysis);
* Industry Report;
* Market Reports
- The following banking activities can be enabled/disabled :
- Mortgages (Fixed rate & Variable rate);
- Securitisation;
- Branches (open/close) versus Fixed Network;
- Issue of shares versus fixed amount of Share Capital;
- Investment Portfolio (T-Bonds);
- Naked Swaps;
- Credit Derivatives;
- Investment Banking;
- Repos and Reverse Repos.
Target Group
- Main target group : bank managers at decision level
- Other target group : high potential staff in management area
The program consists of a combination of two parts: a conceptual and a practical part. The realistic branch environment is created through the integration of four proven approaches to training and development:
- A high-level, interactive, computerised banking simulation;
- Team or group work;
- Short workshops on specific topics such as increasing product and service range, multi-channel distribution, increased market segmentation and competition, branch income and expense reorganisation, branch human resources management;
- Result presentations in public.
Objectives
The Branch Performance Management Seminar (BranchSIM) aims to equip branch managers in a complex and continuously changing environment with an understanding of the many factors influencing present-day branch management.
The seminar focuses on the key success factors and their interdependency that determine the performance of a branch, and covers issues such as:
- Increasing market share in profitable segments by using the right pricing and marketing tools (above and below-the-line tools, call centre outbound campaigns);
- Increasing productivity within the branch (process and operations management, HRM and staff motivation, financial management and outsourcing, influencing a customer’s payment behaviour by facturation of services, investing in remote banking hardware and software, call centre inbound calls)
- Increasing customer value through high quality service, the management of distribution channels, customer management (to increase the profitability of each segment and product range, whilst keeping track of customer satisfaction), training personnel in relationship management
Content
The seminar takes as its departure point the current situation for most branches in developed countries. It examines the change drivers for branch strategies. To understand these change drivers, it studies Porter’s five forces model applied to the banking sector. A value chain approach to product delivery and how this can be optimised, will lead the participants to the main strategy changes required to cut costs and work more efficiently and become more customer focused.
At the end of the seminar, participants should have a general idea on their current level in their branch strategy development, and what the ‘state of the art branch strategies’ are, developed in different parts of the world.
The branch teams will have to decide upon:
- Prices for all the products and the segments they address to;
- Marketing effort to be undertaken per product;
- Investments such as branch remodel ing in function of ATMs and kiosks to be installed;
- Personnel retraining enabling them to address new target groups, pay incentives, and recruitment of personnel;
- Fee charges as one of the change drivers for changing customers’ behaviour;
- Influence of all these decisions upon customer satisfaction.
Target Group
- Regional and Branch Managers;
- Sales and marketing managers that require a solid understanding of the various factors influencing market share;
- All bankers forming part of the management team of the branch and/or region;
- Junior bank professionals earmarked for promotion or part of an accelerated growth programme.
Advanced Credit Risk Management is a training program designed to be a “hands-on” practical training of advanced risk management concepts as applicable to financial institutions. The program consists of a combination of a conceptual part and a computer-based bank management Simulation (CredStrat) for Credit Risk. The conceptual part includes discussions, case studies and exercises on several theoretical and practical aspects of credit risk management at portfolio level in a universal bank. The simulation presents a typical bank with credit activities in multiple industries and different products.
Objectives
CredStrat seminar focuses on the global bank-wide credit management of multiple credit portfolios, with the following specific objectives:
- To provide participants with an understanding of the information and systems required in order to maximise the EVA on a variance / covariance basis;
- To provide participants with a framework for the different risk quantification techniques;
- To expose participants to the latest thinking and strategic decision making mechanisms of credit risk management;
- To discuss and explain the regulations on solvency and credit risk management adopted by the Basle Committee;
- To provide bankers with a working knowledge of the fundamental variables and relationships that affect credit policy decisions;
- To understand the different credit risk management options (pricing, volumes, LGD variables, credit swap etc).
Content
The conceptual part provides insight into the following key topics:
- Credit Variance optimisation: Single transaction management (CAPM, Expected and unexpected risks, PD – EAD – LGD, …);
- Credit Covariance optimisation or diversification policies: Multiple Transactions (portfolio theory, economic equity optimisation and advanced pricing);
- Credit Risk Quantification Methodologies (Related corporate finance theory and probability and statistic models of which Stochastic models, statistical simulations, credit metrics …);
- Economic Equity budgeting and allocation (RAROC, B2, treatment of diversification values…);
- Credit Derivatives.
In the simulation, participants are divided into Credit Management Committees. The individual management teams have to make decisions on all aspects of Credit Risk Management for their respective banks. The CredStrat computer-based simulation is used to allow participants to experience and measure both the immediate and the long term effects of their decisions. Participants have ample opportunity to test their own credit risk strategies, policy decisions, hands-on and practical decision skills within a highly competitive environment.
Target Group
- All Credit department staff;
- Personnel with responsibilities in the field of credit risk assessment;
- Departments’ heads of business units (Retail, corporate, investment banking…);
- Departmental heads of support units (Finance, MIS & accounting, audit, IS/IT…);
- Members to Credit Committees in banks:
- Members to Management Board that are not specialised in risk management:
ComSim uses a combination of formal concepts and a practical business simulation to ensure that skills are not only acquired, but applied in a live and dynamic case study. The programme is aimed at new and existing SME owners that need to enhance their skills, especially if they would like to expand their businesses, apply for funding, looking for new opportunities, etc.
Objectives
- Enable participants to acquire specific skills in business processes, new management skills, to reinforce existing skills and to identify skill deficiencies;
- Enhance functional knowledge and the understanding of business and management disciplines;
- Develop greater business awareness in a global market context;
- Understand the need for change in a business (economic environment; competitive environment, external factors);
- Link overall strategies to the successful implementation of operational strategies;
- Improve participants’ personal and team behaviour (including team building);
- Understand and implement corporate objectives matching the economic and social environment.
Content
ComSim comprehensively covers the five key areas of SME management:
- Business strategy for SME’s
- Operations/production/capacity management
- Marketing and sales
- Business finance
- People management
This integrated approach focuses on the whole business and will clearly show for participants the importance of managing all these aspects well and in an integrated manner.
ComSim was designed according international standards of outcomes based adult learning. The intervention addresses over 80 learning outcomes in the following areas:
- Business competencies (i.e.; multi-functional orientation; business systems and processes; interpreting financial statements, customer orientation and service; performance management; industrial relations, quality management and professionalism.)
- Management competencies (i.e. information processing and analysis; problem resolution and decision making; planning and organising; delegation and control)
- Leading competencies (i.e. strategic thinking and alignment; change management; learning orientation; motivation)
- Interactive competencies (i.e. communication; coaching and facilitation; relationship building and team leadership; conflict management; managing diversity; empowerment; stakeholder involvement).
Target group
ComSim allows for target participants that range from supervisory to middle and regional level managers from all sectors of the economy – manufacturing, commerce, banking and finance, business and personal services.
General Commercial Business
- Middle and functional line managers
- Technical specialists (i.e. engineers, senior technicians) moving into management
- Sales managers / representatives
- Staff that often have to liaise with business clients
- Supervisors
- Senior foremen
- Finance managers
- Human resources managers
- Credit managers / advisers
- Graduate trainees and managers
- Divisional managers
Financial institutions
- Sales managers
- Credit managers
- Relationship managers and business development advisers
- Account managers
- Branch managers
- Technical specialists (i.e. structured finance specialists) moving into management
- Human resources managers
- Graduate trainees and managers