Basel iii training and certification
Certified Stress Testing Expert - Basel 3 (CSTE-B3), distance learning and online certification program.
Financial stress testing was not well designed before 2008. It was largely conducted by banks for internal risk management purposes. Stress tests were simple exercises with little direct impact on strategy. When tested against real stress, a number of financial institutions failed.
The 2008 global financial crisis brought the largest financial reforms since the Great Depression of the 1930s. The usage and prominence of bank stress tests has risen substantially. The Basel iii framework introduced new principles for sound stress testing practices and supervision.
Attracting qualified managers and employees (fit and proper for the job) is the most important component of any Basel III stress testing strategy. Stress testing frameworks must include an effective governance structure that is clear, comprehensive and documented. This should specify the roles and responsibilities of senior management, oversight bodies and those responsible for the ongoing operation of the stress testing framework.
Roles and responsibilities should be specified for all aspects of the stress testing framework, including scenario development and approval, model development and validation, reporting and challenge of results and the use of stress test outputs. The roles of the second and third lines of defence should be specified (eg risk management and compliance, and internal audit, respectively).
The stress testing framework should also ensure collaboration of all necessary stakeholders and the appropriate communication to stakeholders of the stress testing assumptions, methodologies, scenarios and results. The engagement structure should facilitate credible challenge of the stress testing framework, both at senior and technical expert levels, including not only assumptions, methodologies, scenarios and results, but also the assessment of its ongoing performance and effectiveness, and the remediation of gaps identified by key stakeholders.
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.
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 intended for employers demanding qualified professionals that meet the fit and proper requirements.
This course is highly recommended for:
- Managers and professionals involved in Basel III (decision making and implementation),
- Risk and compliance officers,
- IT professionals,
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.
Become a Certified Stress Testing Expert - Basel 3 (CSTE-B3).
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 the price:
A. The official presentations (956 slides)
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 CSTE-B3s. 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.