Systemic Risk and G-SIB Framework (Globally Systemically Important Banks)

This programme addresses the identification, measurement, and management of systemic risk, with particular focus on Global Systemically Important Bank (G-SIB) framework requirements and broader systemic risk considerations for banks operating in interconnected financial systems. While most SME banks are not G-SIBs, understanding systemic risk is crucial for institutions operating in increasingly connected financial markets and managing counterparty exposures to systemically important institutions.

The course covers the methodology for G-SIB identification, Higher Loss Absorbency (HLA) requirements, and systemic risk management frameworks. Special emphasis is placed on how non-G-SIB institutions can identify and manage their contributions to systemic risk and effectively manage exposures to systemically important counterparties.

Participants will:

• Understand systemic risk concepts and measurement methodologies
• Master the G-SIB assessment methodology and implications
• Develop frameworks for managing systemic risk contributions
• Implement effective counterparty risk management for systemically important exposures
• Navigate regulatory expectations for systemic risk oversight
• Integrate systemic risk considerations into strategic planning processes

• Systemic Risk Framework and Concepts
  • Definition and sources of systemic risk
  • Interconnectedness, contagion, and concentration risks
  • Procyclicality and amplification mechanisms
  • Regulatory response to systemic risk post-crisis
• G-SIB Framework and Assessment
  • G-SIB identification methodology and indicators
  • Size, interconnectedness, substitutability, and complexity measures
  • Cross-jurisdictional activity assessment
  • Higher Loss Absorbency (HLA) requirements and bucketing
• Systemic Risk Management for Non-G-SIBs
  • Identifying systemic risk contributions and dependencies
  • Managing exposures to G-SIBs and systemically important counterparties
  • Concentration risk management and diversification strategies
  • Stress testing for systemic risk scenarios
• Implementation and Governance
  • Board and senior management responsibilities
  • Risk appetite and limit frameworks for systemic exposures
  • Monitoring and reporting requirements
  • Integration with enterprise risk management
• Regional and Cross-Border Considerations
  • MENA region systemic risk characteristics
  • Cross-border contagion and spillover effects
  • Regulatory cooperation and information sharing
  • Crisis management and resolution planning