Strategic Risk Management Game

Strategic Risk Management Game is a highly interactive training for bank managers and high potentials who want to get a better understanding of how bank risks are managed.


 

Objectives of the interactive training:

  • Experience the financial management of a bank with a focus on bank-specific risks.
  • Analyse financial statements, risk limits and risk-covering potential.
  • Experience how to manage liquidity risks, interest rate risks, market price risks and credit risks.
  • Raise awareness of how to handle operational risks.
  • Become familiar with the options of risk management and risk hedging.
  • Raise awareness of interdependencies between business opportunities and risks.
  • Get to know and apply Basel III regulations for risk management.

 

Risk types covered by the Strategic Risk Management Game:

  • Financial risks: interest rate, liquidity, credit, market price and currency risks
  • Operational risks: systems, fraud, internal processes and external risks
  • Strategic and reputational risks

 

Setup of the training:

The overall objective of the Strategic Risk Management Game is to increase the awareness of managerial staff with a view to various types of risk exposures faced by a bank. Participants of the training learn the crucial principles of risk identification, analysis and effective management by taking risk management decisions in a simulated environment.

The learning process is characterised by six phases:

  1. Participants are subdivided into groups, each group assumes the leadership of a bank. The teams are introduced to the cover story and familiarised with the initial situation, macroeconomic and banking sector environment.
  2. Participants analyse the financial and non-financial data of their banks and decide on the overall risk strategy of their bank.
  3. A business plan is set up and managerial decisions are made in groups for up to eight periods and entered into the simulation software.
  4. The simulation calculates the gross and net risk-covering potential of each bank with the help of a model, based on real market data.
  5. The simulation results including specific risk management reports are distributed and analysed in groups.
  6. Together with experienced trainers the results are discussed in transfer sessions considering Basel III regulations by setting them into the context of real banking business practice

 

Lessons learned:

  • Participants sharpen their analytical skills by comparing planning and reality and analysing market values and trends.
  • Uncoordinated actions and the use of the principle of hope give way to reflection and analysis.
  • Real risk exposures are analysed, goals and strategies for risk mitigation are redefined and potential decisions are stress-tested.
  • Complex situations are broken down, team work is actively performed and training results are transferred into actual banking business practices.
  • Efficient measures of the implementation of Basel III regulations can be discussed and tested.

 

Business Games: A core module of knowledge transfer in leading financial institutions

Vast demand and strong experience in many countries around the world as well as the positive feedback from highly satisfied participants are convincing proof of the success and the added value of the Strategic Risk Management Game.

Important banks using our Strategic Risk Management Game (inter alia):

  • Bank of China and China Construction Bank (two of the top four Chinese banks)
  • Sberbank (number one of the Russian banks)
  • Erste Group Bank AG (one of the leading Austrian banks, with branches in Central and Southeast Europe)
  • Société Générale (one of the leading French banks with global prominence)
  • Sparkassen-Finanzgruppe (one of the strongest finance groups in Europe)

Sparkassenstiftung für internationale Kooperation e.V.
Simrockstraße 4, 53113 Bonn

Phone: +49 228 9703-0
Fax: +49 228 9703-6613 or -6630

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