Risk-Model & Control Auditing
– systematic support in the quantitative examination of risk models and control systems –
Strong quantitative capabilities often are required for the examination of risk models and risk-control mechanisms. This particular consultancy module supports clients in the audit of all five inherent risk classes and their respective sub-risks:
- Market-price risks
- Liquidity risks
- Default risks
- Operational risks
- and Strategic risks
For example: Issues regarding the appropriate method for measuring one of the most important types of risk – credit or default risk – are receiving increased emphasis. This is due, not least, to regulatory banking measures such as Basel III, the German Solvency Regulation (Solvabilitätsverordnung = SolvV), Germany’s “Minimum Requirements for Risk Management” (Mindestanforderungen an das Risikomanagement = MaRisk) as well as significant repercussions from the financial crisis.
Various methods for gauging credit risk – for example, so-called credit metrics, the model developed by Michael B. Gordy from the U.S. Federal Reserve’s board of governors as well as spread models – have evolved as measurement standards.
Course participants acquire an understanding of various practical methods for measuring credit risk both on the basis of counterparties as well as portfolios. Beyond that, participants receive comprehensive insight into methods for estimating risk exposure. In their role as auditors, participants also are capable of entering into in-depth topic-related discussions on equal terms with the units that are to be examined. ARC instructors provide support and training to enable clients to audit risk models in respect to compliance with legal, regulatory and company-focused guidelines. The yardstick for risk-oriented evaluation on which the training team orients itself consists of the respective national regulatory standards and best-practice guidelines applying to the particular branch of business branch in focus.
- A summary of potential regulatory demands with respect to state-of-the-art audit procedures
- Current adjustments to methodic approaches within the respective inherent risk class and in accordance with Basel III: market-price risks, liquidity risks, default risks or operational risks
- Methods of financial supervisory authorities for measuring individual risk categories
- Elementary considerations with regard to the measurement of exposure
- Actuarial fundamentals related to risk models
- The statistic foundations of risk models with regard to a portfolio analysis
- Summary of the various conventional risk models
- The Monte Carlo approach to measurement, for example, of credit exposure
- Insight into a default-mode model
- Insight into an asset-value model
- Sample calculation, for example, in credit metrics
- Basic considerations with regard to back-testing
- Practical examples and case studies derived from audits
- Detailed implementation options for practical application by course participants
About the ARC Institute
With the Audit Research Center, the ARC Institute provides important impulses for the further development of the audit industry. The focus is on networking science and practice. The focus is on further and new development in cooperation with auditors, companies and associations in order to maintain practical relevance and to develop methods, tools and concepts that can be implemented. The results developed in dialogue with industry experts serve as a guideline and adaptation options in practice today, in order to increase the overall benefit of the company in the long term and sustainably with innovative auditing work.
In the spirit of thought leadership, the ARC Institute and the Audit Research Center stand for topic leadership and forward thinking in the area of internal auditing.
Currently, the ARC Institute supports not only leading supranational institutions in the context of research, consulting and personnel development projects, but also numerous listed companies in the three German-speaking countries of Germany, Austria and Switzerland.
Terms of participation and price
Each open training day is 890,- Euro plus VAT when booking the modules individually. Inhouse training conditions are based on individual pricing and travel expenses. After receipt of your registration you will receive a confirmation of registration with invoice. Please pay the registration fee directly after receiving the invoice. The registration fee does not include 19 % VAT. The price includes participation in the lectures of the booked event, lunch, coffee breaks and seminar documents.
At a glance
Employees and managerial staff from the internal audit function
Interactive presentation, discussion, group projects, practical exercises, case studies, retrospective summary
Training / Training / Consulting period:
Bookings are based on an audit-situation analysis as well as a personal preliminary meeting (workshops generally cover 2-3 days of instruction, audit performance/support determined by circumstances).
Would you like more details about ARC’s Audit Training & Consulting Services, or do you wish to book an appointment with its team? Please address your e-mail inquiry to Info@ARC-Institute.com or phone us at +49-2159-6945-904