20 May 2016

Everything You Need to Know about Balance Sheet Management but Were Afraid to Ask…

Everything You Need to Know about Balance Sheet Management but Were Afraid to Ask…

Short training workshops from BG Consulting, the leaders in financial training – face to face or via webinar – these short training workouts to demystify the modern balance sheet

Overview of Basel III
¾  Causes and lessons from the Global Financial Crisis
¾  From I to II to III – Evolution of Basel Accords
¾  Connecting Risk Asset Ratio to Returns on Risk Adjusted Capital (RoRAC)
¾  The  impact of leverage
¾  Ambitions of Basel III
¾  Focus on Globally Systemically Important Banks
¾  How are banks responding

Overview of Net Stable Funding Ratio (NSFR)
¾  Why the ‘premier’ of liquidity risk in Basel III
¾  Ambition of NSFR
¾  What qualifies as Available Stable Funding [ASF]
¾  What is Required Stable Funding [RSF]
¾  How Liquidity Coverage Ration [LCR] and NSFR work in harmony
¾  The impact on banks and their clients

Funds Transfer Pricing (FTP)
¾  What is FTP and what does it achieve
¾  Why is FTP needed
¾  Construction of an FTP curve
¾  Best practices in derivation of both behavioural term and FTP
¾  Pricing of contingencies and cushions
¾  FTP as a rudder to ‘steer the ship’

Impact of Regulation on Capital
¾  Constraints on quality – changes to the hierarchy of capital and differences between CT1 and CET1
¾  Constraints on risk – changes to the required capital mix
¾  Constraints on ‘dominance’ Additional requirements for Globally Systemically Important Banks (GSIB’s)
¾  Constraints on Size – The Leverage ratio and its impact on Net Funding Generation
Impact of Regulation on Market Risk Management
¾  Overview of changes to evaluation of Market Risk under Basel II.5 and III
¾  Impact of Stressed VaR, how it is calculated and scenarios against which it is measured
¾  Impact Incremental Risk Capital (IRC) and Comprehensive Risk Measures (CRM), the regulators motivation for them and how they are calculated
¾  Counterparty Risk Management under Basel III and the evolution of Credit  Value Adjustments (CVA)
Credit Risk - Internal Rating Based Methodology Demystified
¾  Recap of Standardised Methodology for calculation of Credit Risk Capital
¾  Carrot and Stick – the benefits of complex risk management architecture
¾  Differences between FIRB and AIRB
¾  Intuitive Example
¾  FIRB model for Wholesale
¾  FIRB model for Retail
Counterparty Risk - Credit Value Adjustment (CVA) Demystified
¾  When do derivatives generate counterparty risk
¾  Ambition of CVA and how it’s impact on trading activities
¾  Key Risk Measures– EE, EPE, PFE
¾  Calculation of the CVA charge
¾  Challenges with implementing CVA
¾  Wrong Way Risk
¾  Overview of the rest of the XVA family
Banking 2020 with Foresight
¾  How has banking changed post Global Financial Crisis
¾  How may it change over the next 4 years
¾  Dividing the Family Silver – impact of Volcker, Structural Reform et al

¾  What may Basel IV look like

9 May 2016

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5 May 2016

Why People Need to Stop Giving Managers Such a Bad Rap. It's Time Of Manageship!

Why People Need to Stop Giving Managers Such a Bad Rap. It’s Time for Manageship!

By Mark Stuart
“Managers are people who do things right, and leaders are people who do the right things.” Warren Bennis
I’m not sure why, but recently I’ve come across an increasing number of articles, quotes, memes or infographics that compare managers against leaders. That’s no bad thing in itself, but the problem is that the vast majority are effectively saying you should only aspire to be a leader and not a manager, as they are deemed to be inferior.
Messages like the above are not only insulting to managers, but more importantly, potentially destructive. Here's another one from my newsfeed today:


The difference often lies in people’s understanding and interpretation of the words. In simple terms, management is more about a set of processes, like planning, budgeting, measuring performance and allocation of resources. Leadership involves vision, empowerment, direction and inspiration. They are not interchangeable, but in today’s ever increasingly complex work environment, the distinction is becoming more blurred. Good management is a crucial element for any successful company, as is strong leadership, however the latter is often lacking and therefore gets all the headlines.

In my work, I’m known more for being a leadership trainer but I’m often at my best when working with new managers and high potential staff. I offer both management and leadership workshops as I see them as different skill sets, but and it’s a big but, I don’t promote one over the other. To do so, would be disrespectful to the millions of managers across the world who are still working on their leadership skills. Just because they need to develop this skill set does not mean they are ineffective in their role, nor important to their companies.

A problem I often see in companies that I work with is managers who can’t lead, and leaders who forget to, or can’t manage. I want everyone I work with to be great leaders, but the most effective leaders are also great managers. Yes, they inspire people, have vision, and show a high degree of emotional intelligence, but they also understand the details of the job, how to allocate their resources effectively, and improve processes to increase overall productivity.

One of the core differences I see is that managers come with a title (no getting around that!), but leadership can and should come at any point in your career. Great leaders normally started displaying leadership skills in their teens, however didn’t start building their management toolkit until later in life when in gainful employment. Strong leaders from an early age then run the risk of not developing good management skills, or even wanting to. Leaders who see typical managerial tasks as mundane, or even beneath them, risk looking aloof and disconnected from the real issues facing their companies.

There are certain jobs, and workplace situations, that benefit more from a managerial mindset, than one of inspirational leadership.  True leadership is knowing how to adapt your style (e.g. from transactional to transformational) to the situation without losing any of your personal values.
These views are not new or revolutionary. Both Erika Andersen and Bob Sutton wrote (nice and more succinctly) about this issue 5 years ago, yet the increase in publishing platforms (including LinkedIn) is only serving to increase the frequency and magnitude of these opposing views.

Rather than posting things that highlight, and encourage a difference between managers and leaders, why not acknowledge that great leaders need to possess both sets of skills. These skills are often required at different stages of their career, and we need to be helping employees not only develop these skills but recognize when and how to use them. We need to help them develop ‘Manageship’!

Mark Stuart
Managing Director, BG Anagram Asia