Description
Course Description:
New technologies, product innovation, volume and speed of transactions have transformed the banking landscape, particularly in the consumer lending business – credit card operations. The dynamic and complex business and regulatory environment makes it very challenging for banks to continuously maintain and implement sound and effective control, risk management and governance framework.
The value that an Internal Audit Activity brings to the organization largely resides on the objective and independent assessment of the control, risk management and governance processes, as related to the business objectives set. Compliance with governing laws, rules and regulations and policies of the organization is likewise evaluated, considering the impact to the business of the deviations. And in the process, globally applied auditing standards and control and risk management assessment frameworks are observed in the conduct of the audits.
• This Training Program will provide the participants (i.e., bank auditors, risk practitioners, compliance officers, and operational management) with the body of knowledge relative to the credit card business that could help them carry out adequate and meaningful audits, risk management reviews of risk and control self-assessment reviews, respectively.
• On the other hand, this program could also provide operational management with an understanding of how the Bank’s “control functions” would evaluate the Business Unit’s (BU) processes for the achievement of the bank’s credit objectives, such as the following areas of the BU (a)governance for ensuring effective challenge on credit risk for unsecured credit cards business; (b) portfolio review controls, including compliance with credit card policy and the continuous upgrading of the quality of credit card portfolio, (c)effective risk management and risk mitigation while increasing the risk assets; (d)managing the impact on the bank’s regulatory reporting (e.g., credit risk weighted assets and capital charge, impairment loss monitoring, and more).
• This Training Program will also provide a venue for workshop/group discussions in order to facilitate the learning effectiveness for participants.
Course Outline:
I. Understanding the Credit Cards Business
a. Strategic Thrust for Consumer Lending Business
b. Credit Card Business Model
c. Key Business Objectives and Top Risk
d. Credit Card Cycle
II. Governance Framework
a. Board of Directors
b. Senior Management Committee
c. Operational Management
III. Three Lines of Defense
IV. Preliminary Risk Assessment & Audit Strategy Formulation
V. The Audit Program Guides Development
VI. Audit Results
a. Evaluation of the Controls, Residual Risks, and Audit Issues
b. Analysis of Opportunities for Improvement
c. Assessment of Management’s Response/Action
VII. Communicating Audit Results
a. Advanced Reporting of High-Risk Issues
b. Contents of the Executive Summary
VIII. Overall Audit Assessment and Rating
IX. Audit Issues Follow-through/Monitoring
Schedule/s and Venue:
July 27 & August 3, 2019; 8:30 A.M. to 5:00 P.M.
Dusit Thani Manila, Ayala Center, Makati City