Executive Education 2016/2017

Executive Education 2016/2017

www.iob.ie/executiveeducation

Certified Bank Director Welcome

Certified Bank Director Who we are

The Institute

of Banking

The Institute of Banking is the largest

professional institute in Ireland. We are a

community of 34,000 members who work

in banking and in both international and

local financial services in the Republic of

Ireland and Northern Ireland.

Professional development of our members through education is at the heart of what we do. We are a not-for-profit organisation. The Institute provides university-level banking education programmes and related services. These enable our members to achieve and sustain their professional qualifications and continuing professional development – essential in meeting customer and regulatory expectations. More than 10,000 of our members are currently studying with us.

EXCELLENCE IN EDUCATION

As a recognised college of University College Dublin (UCD) and the standout industry educator, we offer qualifications of the highest standard.

We currently have more than 40 programmes ranging from Professional Certificates (level 7 on the NFQ) to Masters Degrees (level 9).

The Institute also provides specialist education programmes (including the Certified Bank Director Programme), continuing professional development training and customised training programmes through the executive education department, directed by Dr. Margaret Cullen.

We design our programmes to be practical and relevant, but grounded in academic rigour. We focus on providing innovative and flexible education options to ensure that we meet your changing needs. All our programmes are part-time.

The Certified Bank Director Programme is part of a Framework to educate the industry from entry level to Senior Executive.

Certified Bank Director Introduction 01

A Few Words from

Dr. Margaret Cullen, Programme Director,

Certified Bank Director Programme.

Through the Corporate Governance Code for Credit Institutions and Insurance Undertakings 2013 and the Fitness & Probity Standards 2011, the Central Bank of Ireland introduced new rules to ensure that robust governance arrangements and appropriate oversight and standards are in place to avoid or minimise the risk of a future crisis. The banking sector has gone through a fundamental and unprecedented restructuring, with banks having to redefine and re-engineer their banking models. Against the background of more stringent capital and liquidity requirements in Basel III, Boards of Directors are tasked with rebuilding their organisations and developing strategies that provide sustainable profitable growth. Bank Directors face significant challenges bringing the industry forward due to the need to change business models and to implement regulation. Culture and good governance are key to achieving success.

Michael Feeney

Chief Executive Officer The Institute of Banking

Understanding the risk profile and risk appetite in the context of overall strategy and the dynamic relationship between risk appetite, profitability and stakeholder value maximisation are key features of the Central Bank’s Corporate Governance Code for Credit Institutions and Insurance Undertakings. Board directors therefore should be highly aware of the key issues and be in a position to offer well-grounded views and provide challenge as part of their board responsibilities and participation. The Certified Bank Director programme is unique in the Irish market, designed specifically for Bank Directors, (executive and non-executive directors). It is an intensive 10 day programme completed in two separate blocks.

The programme provides participants with a comprehensive understanding of the unique governance issues associated with banks arising from the inherent complexity of banking business models and their risk profile. It also provides an understanding of the duties and responsibilities of directors and the behaviours required from them and well-functioning boards. Inadequate credit assessment was identified as a key contributor to the banking crisis and governance issues in relation to risk will receive particular attention during the programme. Strongly rooted in academic research, theory and regulation, the programme is designed to provide practical knowledge and application. We look forward to welcoming you to the programme.

Dr. Margaret Cullen

Programme Director

Certified Bank Director Programme

A Few Words from

Michael Feeney, Chief Executive Officer,

The Institute of Banking.

Certified Bank Director

02

PROGRAMME DELIVERY AND CURRICULUM

The Certified Bank Director programme is delivered two times per year in Dublin. From 2016, the programme will also be delivered once a year in London. The programme comprises 9 modules delivered over 10 days across two blocks of five days’ duration each. A panel of subject area experts drawn from academia and industry lead each of the individual modules. The emphasis in the programme is on the application of key concepts to enhance the skills of participants and to create a learning forum where challenges can be explored and wisdom and insights dissected and shared.

ON COMPLETION OF THIS PROGRAMME CANDIDATES WILL:

- Understand the essence of a bank, the banking system, the lessons from the banking crisis, and the likely future development of banking post-crisis including the implications of Basel III;

- Appreciate the implications of recent regulatory changes and the legal, regulatory and governance framework relevant to board directors;

- Know the components, measurement and control of bank risk, stress testing, funding and credit risk;

- Comprehend the unique risk profile of banking models, including the systematic and systemic implications of risk-related policies in the context of strategy and the relationship between risk appetite, profitability and stakeholder maximisation;

- Appreciate the efficacy of the internal governance processes and the application of best practice;

- Understand the behaviours required from well-functioning boards and the expectations and requirements of individual directors.

WHO SHOULD UNDERTAKE THIS PROGRAMME?

The Certified Bank Director programme is targeted at executive and non-executive directors of the main and subsidiary boards of banks. It will be highly beneficial, not only to individuals new to the roles and responsibilities of being a bank director, but also to experienced bank directors operating in a significantly changed regulatory landscape. This programme is also targeted at senior managers aspiring to be bank executive directors and/ or identified as potential future executive directors within their organisation.

ASSESSMENT

An assessment is attached to each module to ensure that the learning outcomes associated with the module have been achieved. The assessment will take the form of a learning journal recorded by programme participants during and on completion of each block. A learning journal is a reflective log that records a participant’s learning experience of a particular topic/module. It allows participants to reflect on how their study and learning has developed during each module, what they are learning and the relevance or application of this learning to their own experiences in a work setting. The content of the learning journal will be unique to each participant and will reflect their experiences during the class and their own interpretation of the material presented. The learning journal will be evaluated and graded by the Programme Director to assess the participant’s knowledge, synthesis, analysis and development.

AWARD

On successful completion of this programme, candidates will earn the professional designation of Certified Bank Director from the Institute of Banking.

CONTINUING PROFESSIONAL DEVELOPMENT

Certified Bank Directors have an obligation to develop and maintain the level of professional competence relevant to their positions. The Institute of Banking offers Certified Bank Directors a comprehensive CPD programme to help them meet their CPD requirements. The Institute supports Certified Bank Directors through the ongoing provision of regulatory and best practice readings and updates.

About the CBD Programme

“An excellent programme designed by the Institute of Banking. I found the structured delivery and content of lectures, workshops and assignments were very comprehensive and afforded the opportunity to explore the unique governance issues in banks arising from the complexity of their business model, risk profile and regulation. More critically it also encouraged a deep understanding of the development and monitoring of strategy plans to enable profitable, sustainable growth aligned with fair outcomes for customers. Real diversity in the cohort of participants from across financial services also contributed strongly to the learning within the classroom and the overall value of the programme.”

Kate O’Donnell

Director Customer Proposition, Distribution Channels Bank of Ireland

About the

Certified Bank Director

Programme

Certified Bank Director 03

Certified Bank Director Outcomes and Curriculum 03

Programme Curriculum

BLOCK 1 Module 1

Bank Governance I - Introduction

- Theoretical Perspectives on Corporate Governance - Definition of Corporate Governance

- Failures in Governance and the Banking Crisis - Legal responsibilities and duties of the board - Regulatory framework for credit institutions

Module 2

Overview of Basel and CRD

- What is capital? - Introduction to Basel II - Key requirements - Basel III/CRD IV Module 3 Bank Regulation - Theory of Regulation

- Regulatory Response to the Financial Crises - Regulatory Architecture

- Current Regulatory Framework - Future of Bank Regulation

Module 4 Risk

- Interest rate risk in the banking book - Market risk

- Liquidity risk - Operational risk

- Enterprise risk management

Module 5

Credit (Risk and Philosophy)

- Appetite and policy - Underwriting

- Credit review and oversight - Credit grading of loans and portfolios - Models - use and effectiveness - Credit portfolio analysis

- Credit losses - provisioning, process and recovery - Credit pricing and return on capital

- Different types of lending

- Derivatives and off balance sheet items

BLOCK 2 Module 6

Liquidity Management

- Asset and liability management - ALM governance in banks - Basel III Liquidity Metrics - Funding sources/classes - Balance sheet structures - Fund Transfer Pricing - Stress Testing

Module 7

Analysis of Bank Financial Statements

- Analysing bank financial statements - Classification and measurement rules

(fair value vs. amortised cost) - Impairments of financial assets - Measuring capital

- Introduction to retail bank disclosures

(IFRS 7 - interest rate, credit, liquidity, FX and market risk)

Module 8

Bank Strategy (Including Stress Testing)

- Key strategic challenges to the banking industry - The onset of Basel III/ Dodd-Frank/EIMR: the new

regulatory backdrop

- The growing importance of stakeholder management in the Irish sector

- Specialised versus universal banking in a periphery economy - Developing best practice strategy for the future of banking

Module 9

Bank Governance II

- Boards’ role in practice - Board process

- Internal Governance Frameworks - Ethics and the board

- Board effectiveness: behavioural aspects of boards - Executive remuneration and incentives

Certified Bank Director 04

Programme Schedule

2016/2017

Overview of Basel and CRD Module 3 (1 day)

Bank Regulation Module 4 (1 day each)

Risk (I) Market, Liquidity, IRRBB Risk (II) Operational Risk and ERM Module 5 (1 day)

Credit (Risk and Philosophy)

BLOCK 2(5 days) Module 6 (1 day)

Liquidity Management Module 7 (1 day)

Analysis of Bank Accounting Statements

Module 8 (1.5 days)

Bank Strategy (Including Stress Testing) Module 9 (1.5 days) Bank Governance II Application Deadline Cohort 10 10 October 2016 10 October 2016 11 October 2016 12 October 2016 13 October 2016 14 October 2016 5 December 2016 6 December 2016 7 & 8 December 2016 8 & 9 December 2016 30 June 2016 4 December 2017 5 December 2017 6 & 7 December 2017 7 & 8 December 2017 30 June 2017 3 April 2017 4 April 2017 5 & 6 April 2017 6 & 7 April 2017 30 November 2016 Cohort 11 6 February 2017 6 February 2017 7 February 2017 8 February 2017 9 February 2017 10 February 2017 Cohort 13 9 October 2017 9 October 2017 10 October 2017 11 October 2017 12 October 2017 13 October 2017 Note: Cohort 9 and Cohort 12 of the

Certified Bank Director programme will be delivered in London.

Please see separate brochure at www.iob.ie/executiveeducation

Certified Bank Director Further information 05

For more

information

contact

North Wall Quay Dublin 1

T: +353 (0)1 611 6588

M: +353 (0)86 602 0797

E: [email protected]

W: www.iob.ie/cbd

Candidates interested in participating on the Certified Bank Director Programme are advised to speak to the Programme Director prior to submitting an application.

Eva Kiss BBS, MSc

Admissions and Programme Manager The Institute of Banking

IFSC

North Wall Quay Dublin 1

T: +353 (0)1 611 6589

E: [email protected]

W: www.iob.ie/cbd

As the number of places on the programme is restricted, early applications are encouraged. An application form is available from the Admissions and Programme Manager.

“Having spent over eight years as an Executive Director of Citibank Europe plc, I was very attracted to the Certified Bank Director Programme as a means of benchmarking my understanding of banking business models and governance against a formally organised professional programme.

The benefits were tremendous, not least my ability to formally review all pertinent industry and regulatory material again as well as to reflect on and debate strategic issues. It also provided a focused opportunity to thoroughly reflect on the material and draw deep learning experiences from that exercise as well as engaging interactively with a network of very senior bank directors on important industry topics - past, current and future. There is also a valuable continuing professional development component to enable those who undertake the programme to keep up to date with governance related issues.

The standards of the modules delivered through an expert group of industry and academic lecturers were enhanced further by the deep insights gleaned from the debates.

This programme is a must for those involved with bank boards and it will enhance professional standards and knowledge in the sector at board level.”

Brian Hayes

Former Managing Director Citibank Europe plc and Independent Non-Executive Director

Programme

Venue

The Gibson Hotel Point Village Dublin

Certified Bank Director

06 Certified Bank Director

DR MARGARET CULLEN (PROGRAMME DIRECTOR)

Subject Area: Bank Governance

Dr. Margaret Cullen is a specialist in the areas of corporate and investment fund governance. Margaret holds a BA in Economics from University College Dublin, an MSc in Investment and Treasury from Dublin City University and a PhD in corporate governance from University College Dublin. Her doctoral research explored the role and effectiveness of boards of directors in investment fund governance.

Prior to completing her doctoral research, Margaret worked for 12 years in the financial services industry. She has held senior positions at ABN AMRO International Financial Services Company, the Central Bank, JP Morgan Bank Ireland plc. and RBC Dexia Investor Services Ireland Limited where she gained significant experience in the areas of treasury management, investment fund regulation, compliance and risk management. Dr. Cullen lectures on the Professional Diploma in Corporate Governance for the UCD Centre for Corporate Governance in the areas of executive remuneration and behavioural aspects of boards. She also lectures on corporate governance and ethics for the Institute of Banking on the MSc in Risk Management and the Graduate Diploma in Financial Services and Graduate Diploma in Compliance. Margaret is Programme Director for the Institute’s Certified Investment Fund Director Programme.

In 2009 she carried out independent research on behalf of the Irish Stock Exchange and the Irish Association of Investment Managers, on compliance by Irish listed companies with the Combined Code (now the UK Corporate Governance Code). The recommendations contained in the final report led to the publication by the Irish Stock Exchange of the Irish Corporate Governance Annex as an accompaniment to their Listing Rules. She represented the Centre for Corporate Governance on a Consultative Committee that prepared a Code of Best Practice for Governance Assessment in Ireland (Swift 3000) and was part of the committee’s editorial team. Margaret is a former director of the Corporate Governance Association of Ireland and the Qualifications and Quality Authority of Ireland. She is a non-executive director of The Progressive Building Society and chairs its remuneration committee.

PROFESSOR EAMONN WALSH

Subject Area: Analysing Bank Financial Statements

Eamonn is PwC Professor of Accounting at UCD. He has served as Dean of the Smurfit School of Business and Chairman of the Accounting Department. His primary research, teaching and consulting interests are in the areas of financial analysis, equity valuation and US securities markets. A co-author of three books, his research has been published in Accounting Organisations and Society, the Journal of Business Finance and Accounting, and the Journal of Accounting Auditing and Finance. He was the founding editor of European Accounting and served as associate editor of the Journal of Accounting Auditing and Finance.

Prior to joining UCD, he held faculty positions at the London School of Economics and New York University. Visiting appointments have included UC Berkeley and Peking University. A consultant to a number of leading European, US and Asian corporations, he has also completed assignments with governmental organisations, the International Monetary Fund and the United Nations. He was the inaugural recipient of the Institute of Chartered Accountants Excellence in Education Award and has been a presenter at the World Economic Forum.

MR KEVIN MCCONNELL

Subject Area: Bank Strategy

Kevin, a Chartered Financial Analyst, has more than 15 years of experience in the investment industry, specialising in the banking and insurance sectors. For the past five years, he has been an external strategic advisor to a number of banks and to a range of international debt and equity investors in the sector.

He has worked on both the buy and sell side of the capital markets. Kevin is a senior lecturer on the Masters in Finance programme, Trinity College Dublin, and delivers the Institute of Banking’s Professional Certificate in Complex Financial Instruments in International Financial Services.

He also serves as the examiner for the Certified Financial Planner (CFP) accreditation for FPSB Ireland. Kevin is a principal with K3 Consulting and Gem Strategic, which specialise in executive-level strategic consulting in the financial services arena.

Faculty

Faculty

Certified Bank Director Faculty 07

MS OONAGH CARROLL

Subject Area: Capital and Credit

Oonagh Carroll is Director of Regulatory Reporting and Operations at Bank of Ireland. Prior to joining Bank of Ireland, Oonagh worked in PwC as a Director in the PwC Banking Team, leading a specialist team providing credit risk advice and services to banks and other clients. Oonagh holds a BA in Accounting & Finance from Dublin City University, an MSc in Risk Management from University College Dublin and is a Chartered Accountant. Prior to joining PwC Oonagh worked with the Ulster Bank Group for 13 years. Oonagh was Head of Strategic Credit Analysis within Credit Risk function with key focus areas such as loss provision reporting and forecasting, development and provision of credit management information, validation of credit risk capital, credit capital forecasting, credit quality assurance and Basel wholesale credit models. She also worked in Retail Banking ROI and in Lombard Ireland, in business information and analysis and finance roles.

Oonagh trained as a Chartered Accountant with KPMG and was an audit manager there. Oonagh delivers the Credit Risk module on the Institute of Banking’s Executive Masters in Risk Management.

MR MICHAEL FEENEY

Subject Area: Credit

Michael’s professional career spans both banking and public service. Michael joined the Banking Supervision team of the Financial Regulator in January 2009 to lead the Credit team. He managed the Credit section of the Financial Measures Project in 2011. Michael held a number of senior management positions at Ulster Bank, including Head of Credit and Regional General Manager of the Retail Bank in the Republic of Ireland. He has also completed project work for the International Monitory Fund. Michael is a Fellow of the Institute of Banking, holds a Bachelor of Commerce degree from University College Dublin and is a Fellow of the Chartered Association of Certified Accountants. Michael was appointed Chief Executive of the Institute of Banking in December 2011.

MS MÁIRÉAD DEVINE

Subject Area: Bank Regulation

Máiréad Devine is responsible for Regulatory Risk Strategy for Bank of Ireland Group Regulatory Compliance and Risk. She was formerly the Head of Risk, Governance and Accounting Policy in the Central Bank of Ireland. In this role Máiréad had responsibility for the regulatory risk framework, PRISM, and the development of policy in corporate governance, risk management, accounting and auditing. Máiréad was previously a Director in the PwC Regulatory Advisory Services team where she specialised in the provision of prudential, governance, risk management and compliance services across the financial services spectrum. Máiréad previously worked as a prudential specialist with PwC UK in the Financial Services Regulatory Practice. Prior to that she was a Manager in the Regulatory Policy Division at the Bank of England, where she represented the Bank in negotiating aspects of Basel II (notably in the areas of disclosure, aspects of credit risk and accounting policy). She started her career as an Economist in the Economic Analysis and Research Department of the Central Bank of Ireland.

Certified Bank Director

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MR GERRY ROSEINGRAVE

Subject Area: Liquidity Management

Gerry Roseingrave is an experienced Financial Markets banker. His career in Financial Markets started in the late 1970’s with Bank of Ireland and concluded in 2010 having spent over 20 years with ABN AMRO Group. In 2010 he joined the Central Bank of Ireland as a senior Treasury Analyst.

In his career at Bank of Ireland he worked in Dublin and New York in the Financial Markets area responsible for the management of various trading activities.

In his career at ABN AMRO, which spanned over 20 years, he held senior positions in Amsterdam and Dublin which included Regional Head of Trading CEEMEA, Global Head of Market Risk for Emerging Markets, Head of ALM Central and Eastern Europe and Country Executive Ireland. Finally he held the position of Treasurer Ulster Bank 2008 - 2009, a position to which he had been seconded to.

After joining the Central Bank of Ireland in 2010 he was appointed to lead the Treasury Team within Banking Supervision Division. This team was responsible for the regulation of the Treasury operations of licensed banks with a particularly strong emphasis on the domestic credit institutions. His team was responsible for managing and leading the liquidity element of the Financial Measures Programme 2011 and reporting thereafter to the Troika on liquidity developments at each scheduled quarterly mission visit.

Since the commencement of the Single Supervisory Mechanism in November 2014 a substantial organisational change took place in the Banking Supervision Division of the Central Bank of Ireland. He was then assigned to the Inspections Division within Banking Supervision where he leads a Treasury related inspections team. He has extensive expertise in crisis situations most particularly from an Asset and Liability perspective. In his position as Regional Head of Trading CEEMEA 1997-2001 in ABN AMRO, he helped to manage the Treasury operations of ABN AMRO Prague and Moscow during their country’s crises in 1997 and 1998 respectively.

MR CLIVE KELLY

Subject Area: Operational Risk, ERM

Clive Kelly is General Manager and Executive Director of Partner Re Insurance Ireland Ltd, a subsidiary of Partner Reinsurance. He holds a business degree from the University of Dublin and is a Chartered Insurer.

Clive has worked in the insurance sector for over 25 years, having held many executive roles including Head of Reinsurance, Head of Compliance and Head of Risk Management. Prior to joining Partner Re he was Chief Risk Officer of Zurich Insurance plc., the largest single regulated insurance undertaking in Europe and the largest regulated entity in the state, accounting for some 60% of the entire Irish insurance market.

Clive teaches on a number of graduate and post graduate programmes including MSc in compliance/Graduate Diploma in Compliance as well as the Graduate Diploma in Financial Services and the Bachelor of Financial Services.

He has delivered executive programmes for the Institute of Banking on Enterprise Risk Management and Solvency II as well as teaching on the Certified Bank Director Programme. Clive is a speaker at numerous conferences nationally and in Europe. He has written and contributed to text books on the topics of insurance, compliance, risk management and consumer credit. He has published a number of articles on risk management for industry journals such as Banking Ireland and has written in the national press on the topic of compliance.

Certified Bank Director 09

DR PETER OSBORNE

Subject Area: Company Law

Peter has undergraduate degrees in a number of disciplines including Law and holds a doctorate in Law (1997). He is a solicitor qualified to practise in Ireland and in Northern Ireland and lectured and examined in Law in The Queen’s University of Belfast from 1991 to 1997 during which time he also researched and wrote extensively on legal topics. Peter has practised as a full-time consultant with McCann FitzGerald since 2000. Peter has a legal advisory practice. He has particular expertise in reasoning and legal problem-solving, legal risk assessment and management, statutory and other legal drafting and in advising in legal and regulatory issues in complex projects and transactions. These have included many substantial national and private infrastructure projects and legal and regulatory compliance initiatives in the financial services, State and corporate sectors. Peter advises on banking and financial services licensing and regulatory compliance and generally in administrative, banking and finance, corporate and commercial law and corporate governance. Peter frequently assists clients in legal risk assessment and management and in formulating legal responses to crisis situations, engagements that are, by their nature, sensitive and confidential. He also drafts legislation for a number of State clients.

Peter combines extensive legal and regulatory knowledge and experience with a keen appreciation of the commercial and policy-related context. Peter has an advisory input into a large proportion of the transactions and regulatory issues in which McCann FitzGerald is engaged.

Peter also manages McCann FitzGerald’s research and know-how functions and the firm’s team of professional support lawyers.

PROFESSOR BRIAN O’KELLY

Subject Area: Market, Liquidity Risk, IRRBB

Professor Brian O’Kelly is Adjunct Professor of Finance at Dublin City University and Programme Director of its MSc in Investment, Treasury and Banking. He holds engineering and MBA degrees from UCD, and an MSc in Investment and Treasury and PhD degrees from DCU. His PhD thesis was on the valuation of Collateralised Debt Obligations (CDO).

Brian has worked in the financial markets for over twenty years. His early experience was of commodity price hedging for ESB. Later, he worked in corporate banking and risk management at AIB Capital Markets and with QED Equity. He has undertaken consulting assignments with the Central Bank of Ireland, the Department of Finance, Wells Fargo Bank International and De Nederlandsche Bank.

Brian delivers the Fixed Income and Financial Engineering modules on the Institute of Banking’s Executive Masters in Risk Management and lectures in Derivatives, Banking and Fixed Income in Dublin City University. He has lectured on the MSc in Quantitative Finance and the MBA in University College Dublin, as well as the MSc in Financial Engineering in NUI Maynooth. He has delivered executive programmes for the Institute of Banking on credit risk, market risk and Basel III.

Professor O’Kelly is a speaker at numerous conferences, and has also written articles on securitisation, accounting, banking and regulation for industry journals such as Banking Ireland and Accountancy Ireland, and academic journals such as Journal of International Money and Finance and World Economy.

Certified Bank Director

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The Institute of Banking IFSC

1 North Wall Quay Dublin 1 Ireland P +353 (0)1 611 6500 F +353 (0)1 611 6565 E [email protected] W www.iob.ie