; Post Pandemic Risk Reassessments

Post-Pandemic Risk Reassessments for Investment Banking

 

10 – 11 November 2020

09 AM – 12 PM

 
 
Program 8 Post Pandamic Risk Reassessments

The concept of threat analysis and risk management has been reactivated in new directions after the onset of the Covid-19 pandemic where the adverse impact on forecasts of gross domestic products (GDPs), the risk of sovereign bonds, and the companies that rely on suppliers in impacted countries indicate very dangerous levels or financial collapse. Supply chain disruptions affecting specific companies in investor holdings, third party business services adversely affected and many going out of business permanently, adverse impacts on all executive travel and employee safety which have made businesses rethink about where and how businesses can be conducted away from office premises have all reminded us how threats from infectious disease outbreaks are far different than other operational impacts: the scale and duration of the crisis and its business impacts can be much larger. Pandemic risks have now made financial systems think twice about operational risk and risk management. The risk is no longer just on business and financial performance but also impacts national security... a much higher quality of risk.

Objectives

Upon completion of this program, the participants will be able to learn the following:

 
  • Understand the importance of defining how banks can in the future organize to face faced a logistical challenge that we are now confronting due to the pandemic. Sustained quarantines and enterprise closures and bankruptcies have hit credit-card and corporate-lending businesses. Fiscal policy to shore up an economy on the verge of collapse by reducing interest rates to 0 would adversely profits.
  • How financial institutions have confronted the risks emerging from the pandemic; for example, Morgan Stanley preparing a backup trading site in a remote suburban JPMorgan Chase has banned all nonessential international trips, Bank of New York Mellon Corp. ran a drill temporarily shutting down its downtown Manhattan headquarters and Citigroup extended its international travel ban for all employees. This has severely impacted not only the business opportunities of the above-named businesses but also degraded the investment quality of related business-like airlines, hotel, and other service businesses.
  • How maintaining operational resilience in the face of possible pandemics requires detailed analysis of the unfolding events along with complicated ‘nested’ scenarios, which can change on a daily, if not minute by minute basis. Regional, functional, and third-party linkages must be incorporated. There are different levels of risk for different functions in different regions. Global services can be impacted from the weakest link.
  • Create a source environment where accurate business/technical metadata exists to verify and confirm source/ lineage/ traceability and dependability of data store on the customer and his business.
  • Understand cost to preparedness, tracking, and mitigating actions. Upgrading systems, investing employee time and resources in updating current plans, digital transformation, contracting with back-up suppliers, running drills, even buying more hand sanitizer for conference rooms, it all costs. These costs too impact investment quality of businesses and must be considered for future calculations in investment banking.
Target Audience

Target audience:

 
  • Investment Managers
  • Corporate Bankers
  • Lending Officers
  • Compliance Officers
  • Internal Audit
Methodology
The structure of the course has been designed to enable participants to guide and support their client firms to refine their transformation objectives, consider lessons learned from the pandemic and review their broader strategic agenda. In the global markets, the pandemic has brought significant dislocation with volatility and spikes in trading volumes, creating challenges in the primary, secondary, funding and derivatives markets. We will work in a highly interactive class environment to relearn the lessons of crises and how to prepare a risk management structure to protect and sustain the bank’s as well as the client’s corporate value.
Course outline

Module 1:

Overview of the disruption caused by Covid-19 pandemic in the form of significant revenue and cost challenges, requiring access to credit lines to maximize cash on hand and reduced capital expenditure. Institutional investors also have been affected by large surges in redemptions and falling asset values.

 

Module 2:

Market volatility and the risks for Investment Banking associated with challenges in provisioning equipment at scale, supervising remote staff, enabling collaboration and establishing business as usual (BAU) in this extraordinary environment.

 

Module 3:

What does an enhanced corporate Investment Banking risk model look like? Return to work strategy, proactive post mortem, enhanced digital enablement of workforce, reshaping business strategies for a severely altered marketplace, data enabled risk management

 

Module 4:

  1. Using data enabled risk management to
  2. Real time supervision and control of business investments
  3. Real time financial risk management with rapid deployment of technological oversight tools
  4. Enabling real time counter party exposure management with technological tools
  5. New developments in industry operating standards
  6. Cloud versus captive processing power to manage Investment Banking risks
  7. Cybersecurity and its enlarged role in investment banking and risk management.
 

Class exercise and discussion:

What does a new investment bank look like after covid-19: a case study analysis

Duration
2 Days – 3 Hours a Day / Total of 6 Hours

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