Scenario-Based Recovery and Resolution Planning Training Course

Scenario-Based Recovery and Resolution Planning Training Course

Introduction

The global financial crisis underscored the urgent need for robust crisis management frameworks, leading to the establishment of comprehensive Recovery and Resolution Planning (RRP) regimes. Scenario-Based Recovery and Resolution Planning Training Course is specifically designed to move beyond theoretical compliance, emphasizing the practical application of RRP through dynamic scenario analysis and simulated fire drills. Participants will gain critical, hands-on experience in executing a firm’s recovery playbook and understanding the implications of different resolution strategies, ensuring operational resilience and minimizing systemic risk. The focus is on embedding RRP into business-as-usual processes and decision-making, transforming compliance into a vital component of financial stability and strategic risk management.

This intensive, scenario-driven program will equip delegates with the expertise to navigate complex, multi-dimensional financial stress events. By leveraging stress testing and contingency planning within a structured, interactive environment, the course addresses the intricate interdependencies between a bank's critical functions, legal entities, and financial market infrastructures. Key takeaways include mastering the identification of recovery triggers, assessing resolvability impediments, and operationalizing bail-in and other resolution tools. The ultimate goal is to foster a culture of resolution readiness that is both credible to regulators and fully actionable under severe, fast-moving crisis conditions.

Course Duration

5 days

Course Objectives

1. Operationalize the firm’s Recovery Playbook under various stress scenarios.
2. Assess and strengthen Resolvability by identifying and removing Impediments.
3. Execute Bail-in and other resolution tools in a simulated crisis environment.
4. Master the identification and calibration of Recovery Triggers and Early Warning Indicators.
5. Analyze Critical Functions and Core Business Lines for operational continuity in resolution.
6. Develop effective Communication Strategies for internal and external stakeholders during a crisis.
7. Evaluate Financial Market Infrastructure (FMI) dependencies and ensure seamless access in resolution.
8. Understand the complexities of Cross-Border Resolution and Jurisdictional Interdependencies.
9. Integrate RRP with existing frameworks like ICAAP, ILAAP, and Risk Appetite.
10. Conduct rigorous Resolution Costing and accurately determine Minimum Requirements for Own Funds and Eligible Liabilities (MREL)/TLAC.
11. Design and execute RRP Fire Drills and War Games to test organizational preparedness.
12. Identify and mitigate risks related to Operational Continuity in Resolution
13. Apply the latest Regulatory Updates to enhance plan credibility and compliance.

Target Audience

1. Heads and Specialists of Recovery and Resolution Planning (RRP)
2. Chief Financial Officers (CFOs) and senior Finance management
3. Chief Risk Officers (CROs) and Prudential Risk specialists
4. Heads and staff of Treasury and Liquidity Management
5. Internal Audit and Compliance personnel focused on regulatory mandates
6. Members of the Asset-Liability Committee (ALCO) and Crisis Management Teams
7. Supervisors and officials from Central Banks and Resolution Authorities
8. Legal and Regulatory Affairs Counsels specializing in banking and financial law

Course Modules

Module 1: The RRP Regulatory and Governance Landscape

• Review of international standards and local transposition.
• Establishing an effective RRP Governance structure
• Defining and differentiating Recovery and Resolution phases and legal triggers.
• Case Study: Analysis of a G-SIB’s RRP submission feedback and regulatory expectations.
• Integrating RRP with other risk and capital planning processes

Module 2: Scenario Analysis and Recovery Triggers

• Developing Severe Stress Scenarios for RRP testing.
• Calibrating and monitoring quantitative and qualitative Recovery Triggers and thresholds.
• The process of escalating from routine stress to the activation of the Recovery Plan.
• Case Study: Simulating a simultaneous liquidity and capital shock and trigger breach.
• Best practices for documenting scenario rationale and modeling methodology.

Module 3: Recovery Options and Capacity Assessment

• Identifying and detailing credible Recovery Options
• Quantifying Recovery Capacity and assessing the feasibility and timing of options execution.
• Developing the Recovery Playbook.
• Case Study: Evaluating the political and market feasibility of a major asset disposal option in a live stress event.
• Testing Interdependencies between recovery options and their potential unintended consequences.

Module 4: Resolution Strategy and Critical Functions

• Selecting and justifying the preferred Resolution Strategy
• Identifying and ring-fencing Critical Functions and services that must continue in resolution.
• Conducting Separability Analysis to prepare the institution for potential business reorganization.
• Case Study: Defining Critical Functions for a multinational bank with complex cross-border operations.
• Analyzing the impact of resolution on non-critical business lines and legal entities.

Module 5: Operational Continuity in Resolution (OCIR)

• Mapping Critical Shared Services and service agreements post-resolution.
• Addressing impediments to the transfer and continuity of Financial Market Infrastructure access.
• Ensuring data readiness and system segregation for a Resolution Weekend execution.
• Case Study: Simulating the transfer of critical IT services and data in a resolution scenario.
• The role of the Bridge Institution and operationalizing transitional service arrangements

Module 6: Financial Resources for Resolution

• Understanding the mechanics and calibration of MREL and Total Loss-Absorbing Capacity
• Analyzing the structure and positioning of Eligible Liabilities for effective bail-in.
• Calculating Resolution Costing
• Case Study: Determining the optimal MREL/TLAC issuance strategy to minimize funding costs while maximizing resolvability.
• The process of converting debt to equity and legal/operational considerations.

Module 7: Resolution Playbook and Fire Drills

• Developing a concise, decision-centric Resolution Playbook for Resolution Authority use.
• Conducting Resolution Fire Drills and War Games to test plans and crisis team coordination.
• Testing the effectiveness of Crisis Communication protocols with regulators and the public.
• Case Study: A full-scale simulated resolution weekend, focusing on governance and decision-making under time pressure.
• Post-drill Lessons Learned framework and feedback loops for RRP enhancement.

Module 8: Cross-Border Coordination and Future Trends

• Navigating the challenges of Cross-Border Cooperation between different Resolution Authorities 
• Reviewing recent resolution cases and their practical implications for RRP practitioners.
• Addressing emerging risks: Cyber Resilience and Climate Risk in RRP scenarios.
• Case Study: Analyzing a historical cross-border bank failure and identifying coordination gaps.
• Future direction of RRP: Digitalization, FinTech, and regulatory convergence trends.

Training Methodology

This course employs a participatory and hands-on approach to ensure practical learning, including:

• Interactive lectures and presentations.
• Group discussions and brainstorming sessions.
• Hands-on exercises using real-world datasets.
• Role-playing and scenario-based simulations.
• Analysis of case studies to bridge theory and practice.
• Peer-to-peer learning and networking.
• Expert-led Q&A sessions.
• Continuous feedback and personalized guidance.

Register as a group from 3 participants for a Discount

Send us an email: info@datastatresearch.org or call +254724527104 

Certification

Upon successful completion of this training, participants will be issued with a globally- recognized certificate.

Tailor-Made Course

 We also offer tailor-made courses based on your needs.

Key Notes

a. The participant must be conversant with English.

b. Upon completion of training the participant will be issued with an Authorized Training Certificate

c. Course duration is flexible and the contents can be modified to fit any number of days.

d. The course fee includes facilitation training materials, 2 coffee breaks, buffet lunch and A Certificate upon successful completion of Training.

e. One-year post-training support Consultation and Coaching provided after the course.

f. Payment should be done at least a week before commence of the training, to DATASTAT CONSULTANCY LTD account, as indicated in the invoice so as to enable us prepare better for you.