Retail Bank Strategic Management with Simulation

Course Overview This advanced five day course will guide and develop the competencies of managers in retail banks so that they can face the challenges of changing and increasingly complex, competitive and highly regulated markets. These challenges originated from new regulatory constraints and their impact on the business models of retail banks but also from new technological innovations that create opportunities to banks with trained and motivated management. The training reviews the main challenges, avoiding the long academic and conceptual presentations to focus on group discussions, case studies and actual bank management decisions in a computer based simulation. The course provides an opportunity for participants to update their knowledge and to deliver the most effective retail banking strategy as a direct consequence of the exposure gained during course. The course covers concepts in the morning sessions and the bank management simulation in the afternoon. It is highly dynamic and pro-active, requiring commitment from all participants to climb a steep learning curve in many domains of which some they probably have never focused on previously. Day 1: Value management & value drivers Day 2: Financial Risk Optimisation Strategies and models Day 3: Credit Risk Optimisation Strategies and models Day 4: Commercial strategies and client management Day 5: Resource allocation, capital budgeting and management accounting The training will also enhance soft skills such as team work, presentation skills and management of complex multi-factor decisionning. Also it is fun and competitive! Who Should Attend? This course is directed towards Retail Bank Managers, including all branch managers, business managers, risk managers financial and management accounting managers and strategy managers. Head of Retail Banking Regional Managers Branch Managers General Managers Distribution and marketing managers Risk Managers (credit, alm) and compliance managers Operations Directors Finance and management accounting managers Strategic leadership executives
Day 1 All discussions in workshops are done within the workshop groups i.e. the 'banks' competing in the simulation, unless market as class discussion. Value Management Concepts Definitions of economic value Definition of economic value drivers Financial risk / return equilibrium Financial measures of performance Impact on bank organisation and structure Workshop Review of the SimBank case study characteristics and modus operendi (class discussions) Value and strategy analysis SimBank Strategic Planning and Budgeting Process Concepts Current State versus Future State: the Vision & impact analysis (business and technical) Budgeting process, issues and requirements Management accounting incl. fund transfer pricing and cost allocation Workshop “Credit Agricole” case study: analysis and strategy development SimBank product pricing structure analysis Product pricing decision Day 2 Financial Risk Optimisation Strategies and models~ Concepts Interest rate management strategies and value sensitivities - Risk modelling: gap, ratios & limits - Funding illiquidity versus market and asset illiquidity - Basel 2 constraints - Business management and organisational impacts Liquidity management strategies and value sensitivities - Risk modelling from gap to value at risk - Use and misuse of risk models - Basel 2 constraints (Pillar 1 market risk and pillar 2 on banking book) - Business management and organisational impacts Workshop ALM management of a simulated bank by ALCOs - Analysis of liquidity and interest rate risks - Development of limits and risk constraints - Risk optimisation and hedging simulation decisions Day 3 Credit Risk Optimisation Strategies and models Concepts Borrower risk analysis, scoring and rating Credit risk pricing Credit risk models (simple to value at risk) Use and misuse of risk models Credit portfolio risk measures and management Basel 2 constraints Business management and organisational impacts Workshop Credit portfolio management of a simulated bank by credit committees - Analysis of risk variables (PD, LGD, EAD), solvency, credit markets - Development of risk strategies through credit volume management and pricing - Risk optimisation and hedging simulation decisions Day 4 Growth Management Through Commercial Strategies Concepts: Client Management Retail Banking Retail banking marketing introduction - Products, distribution channels... Client relationship management (CRM) - Operational CRM - Analytical CRM Event based marketing (EBM) Concepts: Client Management Corporate Banking The corporate finance model - Relationship planning and performance analysis (profitability/value models) - Product / solution engineering, pricing and selling - Organisational impacts - The Client manager (RM) - The product specialist (PS) - The control and support structure Workshop SimBank client behaviour analytics Strategic impact analysis (products, distribution...) Marketing campaign and marketing pricing simulation decisions Day 5 Resource Allocation, Capital Budgeting and Management Accounting Concepts Management accounting, including client and product profitability and life time value Definition of accounting, economic and regular equity Capital budgeting and allocations for optimal value creation Workshop Decisions for optimisation of all management variables Preparation of SimBank board strategic presentation Presentation of strategy by the management of each SimBank Course summary and close