Training Course on Financial Stability and Systemic Risk Management

Training Course on Financial Stability and Systemic Risk Management

Introduction

In today’s increasingly interconnected global economy, maintaining financial stability and effectively managing systemic risk are critical for the health of national and international financial systems. Training Course on Financial Stability and Systemic Risk Management is designed to equip professionals with advanced knowledge of the financial architecture, the dynamics of systemic vulnerabilities, and the strategic tools required to prevent financial crises. With the rise in global macroeconomic uncertainty, regulatory expectations, and financial innovation, the need for robust risk mitigation strategies has never been more vital.

 

This intensive, hands-on training program will explore early warning systems, stress testing frameworks, macroprudential policy tools, and cross-border regulatory cooperation. Participants will analyze real-world financial crises and learn to assess and manage systemic risks through interactive case studies, simulations, and practical policy applications. Whether working in the public or private sector, this course empowers learners to make informed, resilient decisions that support sustainable financial ecosystems.

Course Objectives

1. Understand the core concepts of financial stability and systemic risk indicators.
2. Identify early warning signals using predictive analytics and financial stress indices.
3. Analyze macroeconomic imbalances and their influence on systemic vulnerabilities.
4. Develop robust macroprudential frameworks to combat financial instability.
5. Interpret regulatory frameworks and Basel III/IV standards.
6. Examine the role of central banks and lender-of-last-resort functions.
7. Learn liquidity risk assessment techniques under different economic conditions.
8. Apply stress testing methodologies for banks and financial institutions.
9. Design financial crisis simulation models and response strategies.
10. Assess the interconnectedness of global financial institutions.
11. Evaluate the impact of digital finance and fintech on systemic risk.
12. Strengthen strategies for cross-border supervision and regulatory cooperation.
13. Create contingency plans and crisis resolution mechanisms for systemically important institutions.

Target Audience

1. Central bank officials
2. Financial regulators and supervisors
3. Risk managers in banks and financial institutions
4. Economists and financial analysts
5. Policy advisors and think tank professionals
6. Investment professionals and portfolio managers
7. Academics and researchers in finance and economics
8. Graduate students in financial risk management

Course Duration: 10 days

Course Modules

Module 1: Introduction to Financial Stability and Systemic Risk

• Define financial stability and systemic risk
• Historical evolution of financial crises
• Importance of financial infrastructure
• Macro-financial linkages
• Core regulatory concepts
• Case Study: The 2008 Global Financial Crisis

Module 2: Systemic Risk Measurement Tools

• Financial stability indicators
• Network analysis and contagion
• Risk correlation analysis
• Value-at-risk (VaR) models
• Predictive modeling
• Case Study: Icelandic Banking Collapse (2008)

Module 3: Macroprudential Policy and Regulation

• Objectives of macroprudential policy
• Key instruments and tools
• Interaction with monetary policy
• Capital and liquidity buffers
• Credit and asset price cycles
• Case Study: South Korea’s Countercyclical Capital Buffer

Module 4: Basel Frameworks and Regulatory Developments

• Basel III/IV overview
• Capital adequacy norms
• Liquidity coverage ratio (LCR)
• Net stable funding ratio (NSFR)
• Systemic risk buffers
• Case Study: Implementation of Basel III in the EU

Module 5: Financial Surveillance Techniques

• Market monitoring tools
• Risk dashboards
• Data visualization techniques
• Cross-sectoral analysis
• Real-time surveillance systems
• Case Study: U.S. Financial Stability Oversight Council (FSOC)

Module 6: Central Bank Roles in Financial Stability

• Lender of last resort
• Emergency liquidity assistance (ELA)
• Monetary transmission mechanisms
• Crisis communication strategies
• Interest rate policies and systemic risk
• Case Study: Federal Reserve during the COVID-19 Pandemic

Module 7: Liquidity Risk and Market Shocks

• Defining and measuring liquidity risk
• Asset-liability mismatches
• Liquidity stress testing
• Managing short-term shocks
• Market freeze scenarios
• Case Study: Repo Market Turmoil of 2019

Module 8: Stress Testing and Scenario Analysis

• Single-factor vs. multi-factor stress tests
• Reverse stress testing
• Bottom-up vs. top-down approaches
• Scenario construction techniques
• Integration into supervision
• Case Study: EBA EU-Wide Bank Stress Tests

Module 9: Crisis Management and Contingency Planning

• Crisis response frameworks
• Resolution mechanisms
• Living wills and recovery plans
• Bail-in vs. bail-out analysis
• Communication and public trust
• Case Study: Resolution of Lehman Brothers

Module 10: Cross-Border Financial Risks

• Global financial integration
• Regulatory cooperation
• Home-host supervisory issues
• Currency mismatches
• Spillover effects
• Case Study: Asian Financial Crisis (1997)

Module 11: Shadow Banking and Non-Bank Financial Institutions

• Defining shadow banking
• Risks from NBFCs
• Regulatory arbitrage
• Interconnectedness with formal banks
• Monitoring and transparency
• Case Study: Evergrande and China's Property Market

Module 12: Fintech, Digital Assets, and Cyber Risks

• Digital transformation in finance
• Crypto-assets and systemic risk
• Regulatory frameworks for fintech
• Cybersecurity and operational risk
• Digital currency impacts
• Case Study: FTX Collapse and Regulatory Gaps

Module 13: Early Warning Systems

• EWS framework design
• Macroeconomic indicators
• Market-based indicators
• Institutional behavior tracking
• Global financial cycle monitoring
• Case Study: IMF Early Warning Exercise

Module 14: Environmental and Climate-Related Financial Risks

• Climate stress testing
• Transition and physical risk assessment
• Green finance regulation
• ESG integration in risk models
• Role of central banks in climate resilience
• Case Study: European Central Bank Climate Stress Test

Module 15: Practical Applications and Final Simulation

• Group simulation: Crisis response planning
• Role-play exercise: Regulatory coordination
• Risk dashboard development
• Mock stress test design
• Final assessment and feedback
• Case Study: Simulated Country X Financial Crisis Response

Training Methodology

• Interactive lectures by global finance experts
• Case study analysis with guided group discussions
• Hands-on exercises using real financial data
• Scenario-based simulations and crisis games
• Live polling, breakout sessions, and Q&A panels
• Digital resource kits and reading materials

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.