Understanding Risks in Banks
No pain, no gain: a fine line to walk between profit and loss
- Understand internal and external risk factors for a bank
- Analyze how banks manage risk
- Understand the financial crisis and the response
Course content
Introduction: back to the roots of modern banking, from Venice to the Rothschilds, to universal banks
Exogenous risk: where do crises come from
- Anatomy of a financial crisis, 1929 and 2008
- Main financial crises post -1945
- Regulatory framework and political situations lining up with crisis time
- Monetary policy from Central Banks and impact on banking activity
- Governance of banks and financial institutions: risk at all the doors
Case Study: risk mapping in 2008 and today
Banks's job is to produce and manage risk, and be compensated for it
- Maturity transformation and intermediation
- Banking book vs trading book
- Asset and Liability Management
- Guarantees
Case Study: definition of risk premium and asset class cycles
Bank is also subject to risk
Types of risk * Macro : rates, currency, market, liquidity, volatility * Micro : credit and counterparty risk, operational risk, leverage
Case Study: risk mapping of a European universal bank
How a bank measures and manages risk
- Different levels of Risk Management
- Calculating credit risk
- Operational risk from Front to Back Office: Jérôme Kerviel
- Measuring risk in financial markets; VaR (Value at Risk) and its limitations
- From the Cook ratio to the Basel 3 architecture: an evolution warranted by lessons of crises
Bank failing and resolution
- Impact on the environment
- Is it possible to anticipate and measure all risks….. what is a Black Swan
- Operational risk
- Failing governance
- The temptation of circumventing the Spirit of regulation
- Banking Union : what's new
Case Study: Dexia
The New World: new classes of risks for banks
- Gigantic fines for banks are to act as deterrents
- The advent of new competing business models: shadow banking, peer-to-peer lending, prop funds
Course content
Introduction: back to the roots of modern banking, from Venice to the Rothschilds, to universal banks
Exogenous risk: where do crises come from
- Anatomy of a financial crisis, 1929 and 2008
- Main financial crises post -1945
- Regulatory framework and political situations lining up with crisis time
- Monetary policy from Central Banks and impact on banking activity
- Governance of banks and financial institutions: risk at all the doors
Case Study: risk mapping in 2008 and today
Banks's job is to produce and manage risk, and be compensated for it
- Maturity transformation and intermediation
- Banking book vs trading book
- Asset and Liability Management
- Guarantees
Case Study: definition of risk premium and asset class cycles
Bank is also subject to risk
Types of risk * Macro : rates, currency, market, liquidity, volatility * Micro : credit and counterparty risk, operational risk, leverage
Case Study: risk mapping of a European universal bank
How a bank measures and manages risk
- Different levels of Risk Management
- Calculating credit risk
- Operational risk from Front to Back Office: Jérôme Kerviel
- Measuring risk in financial markets; VaR (Value at Risk) and its limitations
- From the Cook ratio to the Basel 3 architecture: an evolution warranted by lessons of crises
Bank failing and resolution
- Impact on the environment
- Is it possible to anticipate and measure all risks….. what is a Black Swan
- Operational risk
- Failing governance
- The temptation of circumventing the Spirit of regulation
- Banking Union : what's new
Case Study: Dexia
The New World: new classes of risks for banks
- Gigantic fines for banks are to act as deterrents
- The advent of new competing business models: shadow banking, peer-to-peer lending, prop funds
Tigrane Kibarian

Tigrane, a graduate of ESSEC and Warwick Business School, began his career in auditing at Arthur Andersen before joining General Electric - Energy Division - in corporate finance, working on industrial, regulatory and M&A assignments in France and Italy.
He joined Goldman Sachs in London, first as COO in the Equities division and then as VP on the institutional portfolio restructuring desk, working on ALM and cross-asset allocation issues.
He made a transition to asset management by becoming Global Macro portfolio manager at Odin Capital, before becoming its COO. After this experience, he founded Zentak Capital with a partner to offer institutional clients a volatility arbitrage strategy.
He has been working in training for 10 years, as a trainer and also in charge of CIB-AM clients for Bärchen. Tigrane is Lean Six Sigma and FCA certified.
Tigrane Kibarian also teaches :
- Alternative Investment Management (Catalogue English)
- Analyse économique et décisions d’investissement (Catalogue Marchés financiers)
- Assets and players in the new financial economy (Catalogue English)
- Basel 3 Impact on Banks (Catalogue English)
- Basel III impacts (Catalogue English)
- Comprendre les marchés financiers (Catalogue Marchés financiers)
- Construction de portefeuille (Catalogue Marchés financiers)
- DiFiQ (Catalogue Certifications)
- Economic analysis: indicators and forecasts (Catalogue English)
- Economic Indicators and Market Cycles (Catalogue English)
- Evolution des banques et nouveaux outils de financement (Catalogue Marchés financiers)
- Excel pour les financiers (Catalogue Marchés financiers)
- Finance en anglais (Catalogue Finance d'entreprise)
- Gestion alternative (Catalogue Marchés financiers)
- L’essentiel des marchés financiers (Catalogue Marchés financiers)
- Les marchés financiers à travers leurs classes d’actifs et leurs participants (Catalogue Banque & Assurance)
- Produits dérivés 1 : mécanismes et utilisations (Catalogue Marchés financiers)
- Risk Management 2 : Risk Governance (Catalogue English)
- The bank in financial economics (Catalogue English)