Certified Stress Testing Expert - Basel 3 (CSTE-B3), distance learning and online certification program
The program has been designed to provide with the knowledge and skills needed to understand the financial stress testing requirements and supervisory expectations after the Basel III framework, and to work in Basel III stress testing projects. The course provides with the skills needed to pass the Certified Stress Testing Expert - Basel 3 (CSTE-B3) exam. We have updated the program the 16th of May, 2018.
This course is intended for managers and professionals working in banks, financial organizations, financial groups and financial conglomerates. It is also intended for management consultants, vendors, suppliers and service providers working for financial organizations.
This course is highly recommended for:
- - Managers and professionals involved in Basel III (decision making and implementation)
- - Risk and compliance officers
- - Auditors
- - IT professionals
- - Strategic planners
- - Analysts
- - Process owners
- This course is intended for employers demanding qualified professionals that meet the fit and proper requirements.
Part 1. Introduction.
• What is stress testing?
• What is financial stress testing?
• Scenario tests.
• A. The portfolio-driven approach.
• B. The event-driven approach.
• Sensitivity tests.
• Choosing stress-test scenarios.
• Berkowitz and stress testing.
• Regulatory stress tests.
• Micro stress tests.
• Macro stress tests.
• Stress testing scenarios based on a higher correlation environment.
• Correlation coefficient.
• Endogenous and Exogenous risks.
• Heisenberg's uncertainty principle and stress testing.
• The birth of stress testing.
• Financial Sector Assessment Programs (FSAPs).
• From the Value at Risk to Stress Testing.
• What is expected under normal market conditions.
• Expected and Unexpected Losses.
Part 2. Stress Testing and the Basel Framework.
• BIS - 72nd Annual Report, lessons learned from a previous crisis.
• BIS - 79th Annual Report.
• Stress-testing methodologies from the BIS.
• Principles for sound stress testing practices and supervision, BIS.
• Use of stress testing and integration in risk governance.
• Stress testing methodologies.
• Basel Committee, Consultative Document, Stress testing principles, December 2017.
• 1. Stress testing frameworks should have clearly articulated and formally adopted objectives.
• 2. Stress testing frameworks should include an effective governance structure.
• 3. Stress testing should be used as a risk management tool and to inform business decisions.
• 4. Stress testing frameworks should capture material and relevant risks and apply stresses that are sufficiently severe.
• 5. Resources and organisational structures should be adequate to meet the objectives of the stress testing framework.
• 6. Stress tests should be supported by accurate and sufficiently granular data and by robust IT systems.
• 7. Models and methodologies to assess the impacts of scenarios and sensitivities should be fit for purpose.
• 8. Stress testing models, results and frameworks should be subject to challenge and regular review.
• 9. Stress testing practices and findings should be communicated within and across jurisdictions.
• Comparison of current principles and proposed new principles.
Part 3. Stress testing, implementation differences in the USA.
• The Supervisory Capital Assessment Program (SCAP).
• The Dodd‐Frank Act stress tests (DFAST).
• The Comprehensive Capital Analysis and Review (CCAR).
• Supervisory guidance on Stress Testing for banking organizations with more than $10 billion in total consolidated assets.
• The principles.
• Stress testing approaches and applications.
• Stress testing for assessing the adequacy of capital and liquidity.
• Governance and Controls.
• Policy Statement on the Scenario Design Framework for stress testing.
• Dodd-Frank Act Stress Tests (DFAST).
• The adverse and severely adverse scenarios.
• The baseline scenario.
• Process, 2017 Comprehensive Capital Analysis and Review (CCAR).
• Scenarios for the 2017 CCAR.
• Qualitative Assessments.
• Quantitative Assessments.
• Mitigating weaknesses in Basel III's measurement of risk.
• Important remarks from Daniel K. Tarullo, Ben S. Bernanke, Larry D. Wall.
• Dodd-Frank Act Stress Testing Rules, February 2018.
Part 4. Stress testing, implementation differences in the EU.
• The European Union: Intergovernmentalism, supranationalism, the unique nature.
• The decision-making triangle.
• The new European financial supervisory architecture.
• Capital Requirements Directive, Capital Requirements Regulation.
• CEBS Guidelines on Stress Testing.
• Guideline 1 to guideline 22.
• EU-wide stress testing.
• The European Banking Authority (EBA) and stress testing.
• 2018, EU-wide stress test.
• 2016, EU-wide stress test.
Part 5. Stress testing, implementation differences in the UK.
• The Financial Policy Committee (FPC) and the Prudential Regulation Authority (PRA).
• The Bank of England’s concurrent stress-testing framework.
• The annual cyclical scenarios (ACS).
• Types of banking stress testing.
• The Bank of England’s approach to stress testing.
For secure payment we work with PayPal, the faster and safer way to make online payments. With PayPal we minimize the cost of administration and compliance with national and international laws, so we can keep the cost of our programs and services so low.
Only PayPal receives your credit card number and your financial information. We receive your full name, your email, and your mail address. According to the PayPal rules, you have the option to ask for a full refund up to 60 days after the payment. If you do not want one of our programs or services for any reason, all you must do is to send us an email and we will refund the payment, no questions asked.
When you click "Buy Now" below, you will be redirected to the PayPal web site. Your payment will be received by our strategic partner and service provider, Cyber Risk GmbH (Rebackerstrasse 7, 8810 Horgen, Switzerland, Handelsregister des Kantons Zürich, Firmennummer: CHE-244.099.341). Cyber Risk GmbH may also send certificates to all members.
The all-inclusive cost is $297.
What is included in this price:
A. The official presentations we use in our instructor-led classes (956 slides)
B. Up to 3 Online Exams
There is only one exam you need to pass, in order to become a Certified Stress Testing Expert - Basel 3 (CSTE-B3). If you fail, you must study again the official presentations, but you do not need to spend money to try again. Up to 3 exams are included in the price.
To learn more you may visit:
C. Personalized Certificate
Processing and posting to your office or home via registered mail.
Frequently Asked Questions
1. How comprehensive are the presentations? Are they just bullet points?
Answer: The presentations are not bullet points, you can read them, understand, and learn. These are the official presentations we use in our instructor-led classes.
2. Do I need to buy books to pass the exam?
Answer: No. If you study the presentations, you can pass the exam. All the exam questions are clearly answered in the presentations.
If you fail the first time, you must study more. Print the presentations and use Post-it to attach notes, like "Credit Risk", "Operational Risk" etc., to know where to find the answer of a question.
3. Is it an open book exam? Why?
Answer: Yes, it is an open book exam. Risk and compliance management is not something you have to memorize, it is something you must understand and learn.
4. Do I have to sit for the exam soon after receiving the presentations?
Answer: No. You can sit for the exam from your office or home, any time in the future. Your account never expires and there is no restriction of any kind.
5. Do I have to spend more money in the future to remain certified?
Answer: No. Your certificate never expires. It will be valid, without the need to spend money or to sit for another exam in the future.
6. Ok, the certificate never expires, but things change.
Answer: Recertification would be a great recurring revenue stream for the association, but it would also be a recurring expense for our members. We resisted the temptation to "introduce multiple recurring revenue streams to keep business flowing", as we were consulted. No recertification is needed for our programs.
Things change, and this is the reason you need to become (at no cost) a member of the association. You will receive our monthly newsletter with updates, alerts and opportunities to stay current.
7. How many hours do I need to study to pass the exam?
Answer: It depends on your knowledge and experience. You must study the presentations at least twice, to ensure you have learned the details. The average time needed is about 42 hours, but there are important differences.
8. I want to learn more about the online exam.
Answer: You will be given 90 minutes to complete a 35-question multiple-choice exam. You must score 70% or higher.
We do not send sample questions. If you study the presentations, you can score 100%.
9. Why should I get certified?
Answer: After the failures of so many organizations during the crisis that started in 2007, firms and organizations hire "fit and proper" professionals who can provide evidence that they are qualified.
Companies and organizations need assurance that employees have the knowledge and skills needed to mitigate risks, and to accept more responsibility. Supervisors and auditors ask for independent evidence that the process owners are qualified, and that the controls can operate as designed, because the persons responsible for these controls have the necessary knowledge and experience.
The marketplace is clearly demanding qualified professionals in risk and compliance management. Certified professionals enjoy industry recognition and have more and better job opportunities.
It is important to get certified and to belong to professional associations. You prove that you are somebody who cares, learns, and belongs to a global community of professionals.
10. Why should I choose your certification program?
Answer: It is always good to investigate first. You should search for other programs, using any search engine.
We strongly believe that we offer the best value for money compared to all other Basel III training and certification programs:
1. The Basel iii Compliance Professionals Association (BiiiCPA) is the largest association of Basel iii Professionals in the world. It is a business unit of the Basel ii Compliance Professionals Association (BCPA), which is the largest association of Basel ii Professionals in the world.
2. The all-inclusive cost of the program ($297) is very low. There is no additional cost for this program, now or in the future, for any reason.
3. There are 3 exams that are included in the cost of the program, so you do not have to spend money again if you fail.
4. No recertification is required. Your certificate never expires.