Basel iii training and certification
Our training and certification programs.
1. Certified Basel iii Professional (CBiiiPro), distance learning and online certification program. You can find the program below.
2. Certified Pillar 3 Expert - Basel 3 (CP3E-B3), distance learning and online certification program. You may visit: https://www.basel-iii-association.com/CP3E_B3_Distance_Learning_Online_Certification.html
3. Certified Stress Testing Expert - Basel 3 (CSTE-B3), distance learning and online certification program. You may visit: https://www.basel-iii-association.com/CSTE_B3_Distance_Learning_Online_Certification.html
4. Capital Requirements Directive IV / Capital Requirements Regulation Professional (CRDIV/CRR/Pro), distance learning and online certification program. You may visit: https://www.basel-iii-association.com/CRD_IV_Distance_Learning_Online_Certification.html
Certified Basel iii Professional (CBiiiPro), distance learning and online certification program
Basel III is a comprehensive set of reform measures developed by the Basel Committee on Banking Supervision, to strengthen the regulation, supervision, and risk management of the banking sector.
These measures aim to:
- Improve the banking sector's ability to absorb shocks arising from financial and economic stress, whatever the source;
- Improve risk management and governance;
- Strengthen banks' transparency and disclosures.
Attracting qualified staff is the most important component of any Basel III implementation strategy. Basel III knowledge is one of the main factors that make managers and employees indispensable for financial organizations around the world.
The program has been designed to provide with the knowledge and skills needed to understand the Basel III framework, and to work in Basel III projects. The course provides with the skills needed to pass the Certified Basel iii Professional (CBiiiPro) exam.
This course is intended for managers and employees 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,
- IT professionals,
- What is Basel III?
- Basel III, the G20 and the FSB.
- The Bank for International Settlements (BIS).
- The Basel Committee on Banking Supervision.
- The Basel III Framework.
- National rules implementing Basel III.
The important Basel III Amendments:
Amendment 1. Corporate Governance and Risk Management.
- Sound corporate governance principles.
- a. Board practices.
- b. Senior management.
- c. Risk management and internal controls.
- d. Compensation.
- e. Complex or opaque corporate structures.
- f. Disclosure and transparency.
- The role of supervisors.
Amendment 2. The regulatory capital.
Understanding the Basel III language.
- Debt Securities.
- Commercial papers.
- Equity securities (common stock).
- Preferred stock.
- Cumulative preferred stock.
- Contingent convertibles (CoCos).
- Perpetual and non-perpetual preferred stocks.
- Paid-up capital.
- Undisclosed reserves.
- Subordinated debt.
- Stock surplus (share premium).
- Hybrid capital instruments.
- Comprehensive income.
- Other comprehensive income (OCI).
- Accumulated other comprehensive income (AOCI).
- Retained earnings.
- Intangible assets.
- Step-up provisions.
- Going concern.
- Gone concern.
- Risk Weighted Assets (RWA).
- Deferred tax.
Capital, the numerator.
- A strict definition of capital.
- 1. Tier 1 Capital (going-concern capital).
- 1a. Common Equity Tier 1 (CET1).
- 1b. Additional Tier 1 (AT1).
- 2. Tier 2 Capital (gone-concern capital).
- Limits and Minima.
- Understanding Common Equity Tier 1 capital.
- Common Equity Tier 1, the 14 criteria.
- Criteria for inclusion in Additional Tier 1 capital.
- Criteria for inclusion in Tier 2 Capital.
- Common shares issued by consolidated subsidiaries.
- Tier 1 and Tier 2 qualifying capital issued by consolidated subsidiaries.
- Regulatory adjustments.
- Double gearing.
- Disclosure requirements.
Amendment 3. The Risk Weighted Assets (RWA), the denominator.
- Enhanced risk coverage.
- The RWA after the December 2017 Basel III reforms.
- The 2017 reforms concentrate on the RWAs (the denominator).
Amendment 4. The Capital Ratio.
- The 4.5% and the 7% common equity ratio.
Amendment 5. Credit Risk after December 2017.
- The standardised approach (SA) for credit risk.
- The internal ratings-based (IRB) approaches.
- a. The Foundation IRB (F-IRB).
- b. The Advanced IRB (A-IRB).
- Standardised approach for credit risk.
- The new due diligence requirements.
- Exposures to sovereigns.
- Exposures to non-central government public sector entities (PSEs).
- Exposures to multilateral development banks (MDBs).
- Exposures to banks.
- (a) External Credit Risk Assessment Approach (ECRA).
- (b) Standardised Credit Risk Assessment Approach (SCRA).
- Exposures to covered bonds.
- Exposures to securities firms and other financial institutions.
- Exposures to corporates.
- Specialised lending.
- Subordinated debt, equity and other capital instruments.
- Retail exposures.
- Off-balance sheet items.
- Defaulted exposures.
- Recognition of external ratings by national supervisors.
- Credit risk mitigation (CRM) techniques.
- Collateralised transactions.
- December 2017 – Internal ratings-based (IRB) approach for credit risk.
- Unexpected losses (UL), expected losses (EL).
- Categorisation of exposures.
- Asset classes.
- (a) corporate,
- (b) sovereign,
- (c) bank,
- (d) retail, and
- (e) equity.
- Adoption of the IRB approach for asset classes.
- December 2017, stress tests used in assessment of capital adequacy.
Amendment 6. Operational Risk after December 2017.
- Reputational risk.
- Systemic risk.
- Strategic risk.
- The standardised approach methodology.
- The Business Indicator (BI).
- The Business Indicator Component (BIC).
- Regulatory determined marginal coefficients.
- The Internal Loss Multiplier (ILM).
- The BI=ILDC+SC+FC formula.
- The standardised approach operational risk capital requirement.
- Application of the standardised approach within a group.
- General criteria on loss data identification, collection and treatment.
- Specific criteria on loss data identification, collection and treatment.
Amendment 7. Global Liquidity Standards.
- Principles for Sound Liquidity Risk Management and Supervision.
The Liquidity Coverage Ratio (LCR).
- Amendments to the LCR.
- The stock of high-quality liquid assets.
- Level 1 assets.
- Level 2 assets.
- Level 2B assets.
- Total net cash outflows.
The Net Stable Funding Ratio (NSFR).
- Available Stable Funding (ASF).
- ASF factors.
- Required Stable Funding (RSF)
- RSF factors.
- a. Contractual maturity mismatch.
- b. Concentration of funding.
- c. Available unencumbered assets.
- d. LCR by significant currency.
- e. Market-related monitoring tools.
- Differences in home / host liquidity requirements.
- Guidance for Supervisors on Market-Based Indicators of Liquidity.
- Liquidity Coverage Ratio Disclosure Standards.
Amendment 8. The Capital Conservation Buffer.
- Distribution policies inconsistent with capital conservation.
- The restriction of dividends and bonuses.
- The buffer of risk-weighted assets.
Amendment 9. The Countercyclical Capital Buffer.
- What is procyclical and countercyclical.
- The buffer.
- Guidance for national authorities operating the countercyclical capital buffer.
- Principles underpinning the role of judgement.
- Jurisdictional reciprocity.
Amendment 10. The Leverage Ratio.
- The Basel III leverage ratio framework.
- The scope of the leverage ratio.
- The ratio.
- (a) On-balance sheet exposures.
- (b) Derivative exposures.
- (c) Securities financing transaction exposures.
- (d) Off-balance sheet (OBS) items.
- Disclosure requirements.
- Disclosure templates.
- The leverage ratio after December 2017.
- The leverage ratio buffer for global systemically important banks (G-SIBs).
- Implementation and monitoring.
Amendment 11. Systemically Important Financial Institutions (SIFIs).
- The additional degree of loss absorbency.
- Lists of global systemically important banks (G-SIBs).
- Updated assessment methodology and the higher loss absorbency requirement.
- a. The size of banks.
- b. Their interconnectedness.
- c. The lack of readily available substitutes or financial institution infrastructure for the services they provide.
- d. Their global (cross-jurisdictional) activity.
- e. Their complexity.
Amendment 12. Risk Modelling, Stress Testing and Scenario Analysis.
- Value-at-risk (VaR).
- Standard Normal Distribution.
- VaR shortcomings.
- Capture of systemic risk/tail events in stress testing and risk modelling.
Amendment 13. Stressed Value-at-Risk (S-VaR), Counterparty Credit Risk (CCR), Credit Valuation Adjustment (CVA).
- Stressed Value-at-Risk (S-VaR).
- Stressed VaR merges stress testing with VaR.
- A stochastic process, a deterministic process.
- Monte Carlo Simulation.
- The Turner Review, four categories of problems.
- Counterparty Credit Risk (CCR).
- Credit Valuation Adjustment (CVA).
- The adjustments to transaction valuation, to reflect the counterparty’s credit quality.
- One-sided CVA, two-sided CVA.
- CVA Risk Capital Charge.
- Monte Carlo Simulation and CVA.
- CVA after December 2017.
Amendment 14. The output floor (December 2017 update).
- Reducing excessive variability of risk-weighted assets.
- Output floor requirements.
- Calculation of the output floor.
- Disclosure requirements.
- Implementation date and transitional measures.
Islamic Banking and Basel III.
(There are no exam questions from this part).
- Basel III was not designed for Institutions offering Islamic Financial Services (IIFS).
- The Basel III equivalent rules.
- The Islamic Financial Services Board (IFSB).
- The IFSB standards that implement Basel III equivalent rules.
- The Islamic Financial Stability Forum (IFSF).
- The International Islamic Liquidity Management Corporation (IILM).
- The Islamic Development Bank (IDB).
- The Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI).
- Understanding Profit-sharing investment accounts (PSIAs).
- Musharakah and Mudarabah partnerships.
- IFSB 1 - Guiding Principles of Risk Management.
- IFSB 12 - Guiding Principles on Liquidity Risk Management.
- IFSB 13 - Guiding Principles on Stress Testing.
- IFSB 15 - Revised Capital Adequacy Standard.
- IFSB 16 - Revised Guidance on Key Elements In The Supervisory Review Process.
- IFSB 17 - Core Principles for Islamic Finance Regulation (Banking Segment) (CPIFR).
- IFSB 19 - Guiding Principles on Disclosure Requirements.
Become a Certified Basel iii Professional (CBiiiPro)
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. You can also use Visa, MasterCard, Discover, or American Express cards, as well as local payment methods, depending on your country. Only PayPal receives your financial information. We receive your full name, your email, and your mail address.
When you click "PayPal" below, you will be redirected to the PayPal web site. If you prefer to pay with a card, you can click "Debit or Credit Card" that is also powered by PayPal. Your payment will be received by our strategic partner and service provider, Cyber Risk GmbH (Dammstrasse 16, 8810 Horgen, Switzerland, Handelsregister des Kantons Zürich, Firmennummer: CHE-244.099.341). Cyber Risk GmbH may also send certificates to all members.
We will send the program up to 24 hours after the payment. Please remember to check the spam folder of your email client too, as emails with attachments are often landed in the spam folder.
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.
The all-inclusive cost is $297. There is no additional cost, now or in the future, for this program.
What is included in this price:
A. The official presentations (1,557 slides)
There are 355 additional slides that cover Islamic banking and Basel III (there are no exam questions from this part).
The presentations are effective and appropriate to study online or offline. Busy professionals have full control over their own learning and are able to study at their own speed. They are able to move faster through areas of the course they feel comfortable with, but slower through those that they need a little more time on.
B. Up to 3 online exam attempts per year
Candidates must pass only one exam to become CBiiiPros. If they fail, they must study the official presentations and retake the exam. Candidates are entitled to 3 exam attempts every year.
If candidates do not achieve a passing score on the exam the first time, they can retake the exam a second time.
If they do not achieve a passing score the second time, they can retake the exam a third time.
If candidates do not achieve a passing score the third time, they must wait at least one year before retaking the exam. There is no additional cost for any additional exam attempts.
To learn more, you may visit:
C. The certificate
Processing and posting via registered mail with tracking number. Certificates are usually dispatched every 10 weeks.
Frequently Asked Questions
1. I want to know more about the Basel iii Compliance Professionals Association (BiiiCPA).
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), the largest association of Basel ii Professionals in the world.
Both associations are wholly owned by Compliance LLC, a company incorporated in Wilmington NC and offices in Washington DC, a provider of risk and compliance training and executive coaching in 36 countries.
Several business units of Compliance LLC are very successful associations that offer standard, premium, and lifetime membership, weekly or monthly updates, training, certification, Authorized Certified Trainer (ACT) programs, advocacy, and other services to their members.
2. Does the association offer training?
The association offers distance learning and online certification programs in all countries, and in-house instructor-led training in companies and organizations in many countries.
A. Distance learning and online certification programs.
A1. Certified Basel iii Professional (CBiiiPro), distance learning and online certification program. To learn more, you may visit: https://www.basel-iii-association.com/Basel_III_Distance_Learning_Online_Certification.html
A2. Certified Pillar 3 Expert - Basel 3 (CP3E-B3), distance learning and online certification program. To learn more, you may visit: https://www.basel-iii-association.com/CP3E_B3_Distance_Learning_Online_Certification.html
A3. Certified Stress Testing Expert - Basel 3 (CSTE-B3), distance learning and online certification program. To learn more, you may visit: https://www.basel-iii-association.com/CSTE_B3_Distance_Learning_Online_Certification.html
A4. Capital Requirements Directive IV / Capital Requirements Regulation Professional (CRDIV/CRR/Pro), distance learning and online certification program. To learn more, you may visit: https://www.basel-iii-association.com/CRD_IV_Distance_Learning_Online_Certification.html
B. Instructor-led training.
The association develops and maintains several certification programs and tailor made training programs for directors, executive managers, risk and compliance managers, internal and external auditors, data owners, process owners, consultants, suppliers, and service providers. For instructor-led training, you may contact Lyn Spooner.
3. Is there any discount available for the distance learning programs?
Unfortunately, we do not offer any discount for the first program. We want to keep the cost of the programs so low for all members.
You have a $100 discount only after you purchase your first program, and it applies to all the other programs of the Basel iii Compliance Professionals Association (BiiiCPA), and to each one of the programs that follow:
a. Certified Risk and Compliance Management Professional (CRCMP).
b. Certified Information Systems Risk and Compliance Professional (CISRCP).
c. Certified Cyber (Governance Risk and Compliance) Professional - CC(GRC)P.
d. Certified Risk and Compliance Management Professional in Insurance and Reinsurance - CRCMP(Re)I.
There are programs offered by the International Association of Risk and Compliance Professionals (IARCP, https://www.risk-compliance-association.com). The BiiiCPA and the IARCP are both wholly owned by Compliance LLC.
For example, you can purchase the CBiiiPro program for $297, and then purchase the CRCMP program for $197 (instead of $297), and/or the CSTE-B3 program for $197 (instead of $297).
The CRCMP has become one of the most recognized programs in risk management and compliance. There are CRCMPs in 32 countries. Companies and organizations around the world consider the CRCMP a preferred certificate. You can find more at: https://www.risk-compliance-association.com/CRCMP_Jobs_Careers.pdf
4. Why do you accept payments via PayPal only, for the distance learning programs?
There are important threats to data security in today's IT landscape. On top of that, new data protection regulations around the world put tough requirements on organisations that store “personally identifiable data”, including credit card information. These two factors could increase the cost of our programs dramatically.
We accept payments via PayPal for the distance learning programs, to minimize the cost of compliance and administration. PayPal keeps and protects your financial information, not us, so we can keep the cost of the program so low.
With PayPal you have some additional benefits. You can keep the program for 59 days to evaluate it, and if you do not like it, you can simply send us an email and ask for a full refund, no questions asked. We will refund your payment in less than 24 hours.
PayPal offers this escrow service (an escrow generally refers to money held by a third-party, PayPal, on behalf of the transacting parties). In this way, there is absolutely no risk for you.
If you do not have a PayPal account and you do not want to create one, somebody else with a PayPal account can also pay for you. After the payment, just let us know, and we will update the record.
5. Are your training and certification programs vendor neutral?
Yes. We do not promote any products or services, and we are 100% independent.
6. I want to learn more about the exam.
You can take the exam online in the comfort of your home or office, in all countries. 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%.
When you are ready to take the CBiiiPro exam, you must follow the steps: https://www.basel-iii-association.com/Certification_Steps_CBiiiPro.pdf
When you are ready to take the CP3E-B3 exam, you must the steps: https://www.basel-iii-association.com/Certification_Steps_CP3E_B3.pdf
When you are ready to take the CSTE-B3 exam, you must follow the steps: https://www.basel-iii-association.com/Certification_Steps_CSTE_B3.pdf
7. How comprehensive are the presentations? Are they just bullet points?
The presentations are not bullet points. They are effective and appropriate to study online or offline.
8. Do I need to buy books to pass the exam?
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 "operational risk", "board" etc., to know where to find the answer to a question.
9. Is it an open book exam? Why?
Yes, it is an open book exam. Risk and compliance management is something you must understand and learn, not memorize. You must acquire knowledge and skills, not commit something to memory.
10. Do I have to take the exam soon after receiving the presentations?
No. You can take the exam from your office or home, any time. Your account never expires and there is no time restriction.
11. Do I have to spend more money in the future to remain certified?
No. Your certificates never expire. They will be valid, without the need to spend money or to take another exam in the future.
12. Ok, the certificates never expire, but things change.
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. Every month you can visit the "Reading Room" of the association and read our newsletter with updates, alerts, and opportunities, to stay current.
13. How many hours do I need to study to pass the exam?
You must study the presentations at least twice, to ensure you have learned the details. The average time needed is about 42 hours for the CBiiiPro program, 17 hours for the CP3E-B3 program, and 33 hours for the CSTE-B3 program, but there are important differences.
14. Why should I get certified?
Firms and organizations hire and promote "fit and proper" professionals who can provide evidence that they are qualified. Employers need assurance that employees have the knowledge and skills needed to mitigate risks and accept 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.
15. Why should I choose your certification programs?
We strongly believe that we offer the best value for money compared to all other Basel III training and certification programs:
a. 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.
b. The all-inclusive cost of each program ($297) is very low. There is no additional cost for this program, now or in the future, for any reason.
c. If you purchase a second program, you have a $100 discount. The all-inclusive cost for your second (and each additional) program is $197.
d. There are 3 exam attempts per year that are included in the cost of each program, so you do not have to spend money again if you fail.
e. No recertification is required. Your certificates never expire.