Executive Master in Responsible Banking (MRB) Responsible Finance Management Programme (RFMP)

Transcription

1 Executive Master in Responsible Banking (MRB) Responsible Finance Management Programme (RFMP) 1

2 Table of Contents INTRODUCTION... 3 METHODOLOGY... 4 FACULTY... 5 MODULE I FOUNDATIONS IN RESPONSIBLE BANKING... 6 Module II: Specialisation: Responsible Retail Banking Management Module III: Specialisation: Responsible Corporate Banking Management ACCREDITATION CALENDAR, TIMETABLE AND COST

3 INTRODUCTION The Responsible Banking Educational Programmes are organized by three major international players in the banking and academic sectors (the IEB, the World Savings and Retail Banking Institute and the London School of Economics Executive Education) The Executive Master in Responsible Banking (MRB) and the Responsible Finance Management Programme (RFMP) seek to inspire bankers to implement the necessary cultural changes inside the banking and financial industry to win back client trust and to gain a competitive advantage; as we understand it, the future of banking will depend on organisations behaving with integrity, covering environmental, social, economic and governance issues while respecting all stakeholders. We offer the possibility of completing the Executive Master in Responsible Banking courses (Advanced Courses) or the Responsible Finance Management Programme courses (Foundation Courses) separately. RESPONSIBLE BANKING FOUNDATION AND ADVANCED COURSES RESPONSIBLE BANKING ADVANCED COURSES The Executive Master contains 7 courses; five courses for Module 1, one course for Module II and one course for Module III. Each course lasts 6 weeks and on completion, students obtain an Advanced Certificate in that Responsible Banking Course. RESPONSIBLE BANKING FOUNDATION COURSES The Master contains 7 courses; five courses for Module 1, one course for Module II and one course for Module III. Each course lasts 3 weeks and on completion, students obtain a Foundation Certificate in that Responsible Banking Course. Foundation courses last 3 weeks instead of 6 as only half of the content of the Advanced Courses is seen. We offer students to complete each Foundation Course next year with those topics and case studies that have not been seen, obtaining therefore the Advanced Course. 3

4 METHODOLOGY Topics and case studies have been selected in order to offer students a fundamental understanding of responsible finance applicable to different finance and banking professions. Each module has been developed with the input from academics and leaders from the financial community. Academic tutors accompany the students throughout the Programme s modules and courses. The tutor s responsibility is to follow each student, introduce practical cases and answer questions through online tutorials. Students receive detailed study documentation as well as numerous spreadsheets which are kept on the virtual platform so that students can use them from whenever and wherever they study. 4

5 FACULTY CONTENT OF THE PROGRAMME Below you can see all the syllabus for both the Foundation Courses and the Advanced Courses. The ones studying Foundation Courses will only see per course those topics and case studies marked as F.C. Students coursing Advanced Courses will see all the topics and case studies. Students coursing a Foundation Course has the possibility to complete that course next year in order to obtain an Advanced Course. 5

6 MODULE I FOUNDATIONS IN RESPONSIBLE BANKING Course 1: Foundations in Responsible Finance COURSE DESCRIPTION: Understanding the Responsible Financial and Banking Environment and the main Technical Financial Tools. This course is designed to teach responsible banking concepts, principles and framework. At the same time fundamental economic and finance issues are explained to strengthen participants skills in banking and financial activities. OBJECTIVES: Learning the meaning of Responsible Banking and its key principles Discussing the implementation of Responsible Banking: obstacles and opportunities Clarifying fundamental concepts of macroeconomics theories Analysing the Great Recession and current Macroeconomics policies Discussing banks contribution to financial stability and economic growth Understanding the goal of financial mathematics and current best practices Understanding how to use and apply statistics in banking Learning best practices in financial analysis Examining and discussing the importance of behavioural finance for financial institutions and its implication for responsible banking CONTENT: A) TOPICS 1. Financial Institution roles and responsibilities: Key points for responsible banking. (F.C) 2. Macroeconomic theories and banks contribution to financial stability (F.C) 3. The ethical rationality of financial mathematics. 6

7 4. Statistics applied to responsible finance 5. Responsible and transparent analysis of financial statements 6. Behavioural finance: The importance of psychology in the economic crisis (F.C) B) CASE STUDIES 1. Consequences of government unwillingness to back foreigners deposits: The Ice Save case 2. The Latvian Lesson. How its Banking Industry was reshaped 3. Responses to the Financial Crisis: responsible answers of different business banking models. PART I (F.C) C) READINGS 1. Moral hazard: Too Big to Fail, how to manage systemic banks (F.C) 2. Study of the German savings bank model Course 2: Integrity of Financial Markets and Products: The Responsible Approach COURSE DESCRIPTION Analysis of the role, behaviour and responsible development of financial markets and Products. The course aims to explain how transparent and efficient functioning of financial markets can contribute to economic growth. Sustainable and Responsible Investment (SRI) is an essential topic of the course. We study how this concept is applied to different financial products and how to align investors financial objectives with the social responsibility of the financial sector. OBJECTIVES 7

8 Understanding SRI and its new developments Analysing the efficiency of financial markets Discussing the implementation of banking human rights framework. Obtaining a good and practical understanding of international fixed income markets as well as attempt to review best practices to avoid past scandals. Analysing funding sources available for financial institutions at the bond market and explain aspects to be considered when managing the balance of a bank from a responsible approach Understanding derivatives and learning best practices in derivatives markets Discussing the role of the asset managers of mutual and pension funds, and what duties they have for the financial good of their investors and for the overall good of society as a whole. Analysing Hedge Fund strategies and their integration within SRI framework Explaining sustainable development of Currency and Forex Markets CONTENT A) TOPICS 1. Sustainable and Responsible Investment (F.C) 2. The role and functioning of Fixed Income Markets 3. Sustainable development of Currency and Forex Markets 4. Good Practices in Derivative Markets (F.C) 5. Introduction to business in human rights (F.C) 6. Ethical Investment in hedge funds: its philosophy, approach to investments and new strategies B) CASE STUDIES 1. Soft Commodities: How to prevent market volatility to avoid hunger in third world countries. 2. Ponzi scheme: Madoff s fraudulent investment operations (F.C) 8

9 3. How to avoid interbank interest rate fixing manipulation: the Libor scandal and its implications for financial markets. (F.C) 4. Sovereign debt and policy maker decisions. Greek debt relief and moral hazard. 5. AIG Short Selling CDS, Credit Default Swap and their role in the subprime crisis 6. Conflict of interests in structuring and marketing of CDO tied to subprime mortgages C) READINGS 1. Performance Attribution and Asset Allocation: do not dissociate investment policy from customer (F.C) 2. Selected reading about SRI Market (F.C) 3. Systemic effect of ETFs and how to prevent counterparty risk. 4. Hedge Fund industry role in financial markets and new regulations. 5. Responsible investment and hedge funds: A discussion paper. UNEP Financial Initiative Course 3: Creating a Culture of Responsible Risk Management COURSE DESCRIPTION Identifying, assessing, managing and mitigating the Integrated Risks of a Financial Institution. The course is focused on analysing risk management as a fundamental part of the Internal Governance of Financial Institutions. The aim is to establish a risk culture based on a full understanding of the risks faced and how they are managed. Risk management involves every member of the organisation and members should correctly understand their responsibilities and their contributions for the solvency of their corporations. OBJECTIVES Implementing sound and consistent risk culture throughout an institution Identifying bank s sources of credit risks Learning responsible lending Analysing operational risk as an integral part of strategic planning, business management and overall risk management processes. 9

10 Market risk measurement and analysis methods to be used by responsible financial institution Accountability and transparency in strategic risk management Understanding liquidity risk, asset and liability management CONTENT A) TOPICS 1. Credit Risk analysis. Ethical issues in risk management (F.C) 2. Fair Scoring & Credit Rating Analysis: The role of rating agencies 3. Reliable Market Risk Analysis (F.C) 4. Operational Risk (F.C) 5. Liquidity analysis, asset and liability management 6. Integrated and strategic risk governance B) CASE STUDIES 1. Solvency analysis of financial institutions: European Stress Tests 2. Rating agencies, ownership and conflicts of interest while structuring and valuating assets 3. Var Risk Model failure during financial crisis: what went wrong? (F.C) 4. Wells Fargo s sound approach to Risk Management 5. Responsible Lending (F.C) C) READINGS 1. The ethics of Risk Management: a post-crisis perspective, 2011, John R. Boatright. (F.C) 2. Insurance 2020 turning change into opportunity, 2011, PWC 3. Environmental and Due Diligence Risks 10

11 Course 4: Sound Corporate Governance and Regulation for Responsible Financial and Banking Institutions COURSE DESCRIPTION: Adapting to new Banking Regulatory Framework and complying with Responsible Principles are the main objectives of this Course. It provides a full understanding of the ethics and corporate governance practices in banking institutions and also reviews the main regulation from a responsible approach. OBJECTIVES: Understanding corporate governance and the meaning of ethics in banking Discussing the main aspects of new regulation: from Volcker & Vickers to MIFID and too big to fail Analysing the pillars of corporate governance and the role of internal control, compliance and audit areas Learning new trends in soft regulation, transparency and sustainable management CONTENT: A) TOPICS 1. Introduction to ethics in financial institutions and understanding value creation, examining sources of risk in fast growing financial institutions (F.C) 2. Definition and objectives of Corporate Governance 3. New Regulations and Banking Reforms: Crisis Management, Volcker s and Vickers, MIFID (F.C) 4. New trends in financial accounting standards 5. Soft Regulation (UNEFP FI ) Internal control, compliance and audit (F.C) 6. Transparency and sustainable indicators 11

12 B) Case studies: 1. New requirements and changes of Basel III: Towards a new business model for financial institutions (F.C) 2. Accounting manipulation and fraud: Enron, Parmalat, WorldCom 3. Whistle Blowing and Corporate Governance (F.C) 4. ING Direct: a growing success story 5. Kaupthing: a risk perspective of managing growth and value creation 6. Different experiences with Bad Banks (F.C) B) Readings: 1. Corporate Governance in Europe: (MIFID I and II) Markets in Financial Instruments Directive and the banking directive 2. Breaking up the banks from Glass and Steagall act to Volcker rule and Vickers report. Restructuring the banking system to improve safety and soundness, 2011, Thomas M. Hoening and Charles S. Morris (F.C) 3. Best practices in control and compliance: the banking system in Canada 4. Did good cajas extend bad loans? 2010, Luis Garicano and Vicente Cuñat, London School of Economics. (F.C) 5. Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions: A renewed EU strategy Course 5: Strategic Corporate Management for Responsible Institutions. CSR COURSE DESCRIPTION: Leading financial institutions responsibly and creating sustainable competitive advantages by managing people and talent. This course aims to provide a deep understanding of CSR in banking as an integrated part of banks mission, value system and strategy. Professionalism is also studied in the course to help to 12

13 understand the ethical role of individuals within financial organisations. OBJECTIVES: Learning the new trends and change of business models in commercial banking Examining the Corporate Social Responsibly strategy in banking Discussing professionalism in banking Analysing responsible compensation and employee policies Clarifying the retail and corporate banking organisational models CONTENT: B) TOPICS 1. New trends in commercial banking strategy 2. Strategic Management, leadership and future trends in sustainable Banking Management (F.C) 3. Corporate Social Responsibility Strategy (F.C) 4. Responsible and Strategic compensation and key benefits 5 Professionalism in Banking: competence and integrity. Standards of professional conduct (F.C) 6 An introduction to retail and Corporate Banking Organizational Models C) Case studies 1. Responses to the Financial Crisis: responsible answers of different Business Banking Models PART II (F.C) 2. Good practices in banking. Current examples of social banking: the case of retail and savings banks (F.C) 3. Banking workers resilience: The Goldman Sachs employee s resignation letter. Loyal or disloyal behaviour? 4. Gordon Brown s introduction to specific bonus taxation 13

14 5. Measuring the social dividend in saving banks: the case of Banco Caja Social BCSC (Colombia) and 6. Hatton National Bank (Sri Lanka), perspective 57, February 2007, WSBI. C) Readings: 1. Banking in 2050, 2011, PWC (F.C) 2. Corporate Governance and access to finance: Kenya post office savings bank (Kposb), perspectives 62, March 2011,WSBI (F.C) 3.Benefits of banking for Emerging Markets Population 4.. How EU States have managed banking recapitalisation: who pays the bill? 5. Islamic Banking and Finance, insight on possibilities for Europe, ESBG Perspectives N 60 Oct

15 Module II: Specialisation: Responsible Retail Banking Management COURSE DESCRIPTION: It provides indepth knowledge of retail banking management from a responsible perspective. This course is designed to teach the best practices in the selling of financial products and services, marketing, pricing, communication and other activities aimed at gaining a competitive advantage. OBJECTIVES: Learning the best practices in retail banking Discussing selling against advisory approach Clarifying innovation and client centricity Analysing corporate communication and branding positioning CONTENT: A) TOPICS 1. Responsible Retail Banking Institutions (F.C) 2. Strategic selling and advisory responsible approach 3. Integrity in marketing, brand positioning, competitive advantages, innovation and pricing policy 4. Impact of Corporate Communication on bank s reputation TCR Communication (F.C) 5. Responsible Innovation in Banking: new technologies for customer-centric experiences 6. Key issues in the financing and service of Small and Medium Sized companies. Financial literacy (F.C) B) Case studies: 1. Advisory vs. product commercialisation. Best practices in Private Banking. 2. Brand positioning of saving banks vs. banks and other financial intermediaries 3. Preferred Shares: The misleading product distribution of Spanish banks (F.C) 4. The increasing importance of responsible corporate communication. A new way to manage corporate reputation 15

16 5. Microfinance experiences (F.C) 6. Proximity banking: The case of community banks in the US C) Readings: 1. Ethics in microfinance, 2011, Reinhard H. Schmidt (F.C) 2. Mass Retail Banking: how saving banks in Africa,Asia, and Latin America can provide usable services for the poor, working paper,wsbi, 2012 (F.C) 3. Microfinance: FMBBVA (F.C) 4. Bank dependency during SME s international expansion ESBG-WSBI Perspectives N 61, Sept

17 Module III: Specialisation: Responsible Corporate Banking Management COURSE DESCRIPTION The course is focused on developing good understanding of Responsible Corporate Banking. Best practices, professional techniques, products and services in Corporate Banking are fully explained from an ethical perspective to enable bankers to serve their clients instead of just selling well. OBJECTIVES Understanding the foundations of Responsible Corporate Banking Analysing professionalism in Corporate Banking Learning techniques in Corporate and Structured Finance Discussing conflicts of interest in Corporate Banking CONTENT 1. Foundations in Corporate Finance and best practices (F.C) 2. Professionalism in Corporate Banking (F.C) 3. Project Finance and Equator Principles (F.C) 4. Finance and Investment: Efficient and sound alternatives to banking finance 5. Corporate finance and structured finance Case studies 1. Conflicts of interest in mergers and acquisitions: the disastrous merger of Sprint and Nextel (F.C) 2. Dot.com and Facebook recent public offerings. Did the underwriters act properly and transparently? (F.C) 3. Jérôme Kerviel and Société Générales: Rogue trader or absence of an ethical culture in derivatives management. 4. Multilateral banking institutions role in project development: IMF s active role 5. Current issues in insider trading: Galleon group hedge-fund founder Raj Rajaratnam s sentence. 17

18 Readings 1. Private Equity and Venture Capital. The Responsible Approach: what is behind private equity transactions? (F.C) 2. Capital Markets and Asset Securitisation 18

19 ACCREDITATION Responsible Banking Foundation Course accreditation for students taking a 3 weeks course. Responsible Banking Advanced Course for students taking a 6 weeks course. Having obtained any Responsible Banking Foundation Course students an opt the following year to complete the remaining elements of the modules of the Course, thus obtaining the Responsible Banking Advanced accreditation. All courses are accredited by the IEB (Instituto de Estudios Bursátiles) the WSBI (World Savings and Retail Banking Institute) and in association with the LSE (London School of Economics) Executive Education. 19

20 CALENDAR, TIMETABLE AND COST Foundation and Advanced Courses are taken during the same weeks. Foundation Courses will be imparted during 3 weeks of those dates while Advanced Courses will be imparted during the 6 weeks. Dates MODULE I FOUNDATIONS IN RESPONSIBLE BANKING Course 1: Foundations in Responsible Finance DATES: (24th of March th of May 2014) Course 2: Integrity of Financial Markets and Products: The Responsible Approach DATES: (19th of May th of June 2014) Course 3: Creating a Culture of Responsible Risk Management DATES: (7h of July th of August 2014) Course 4: Sound Corporate Governance and Regulation for Responsible Financial and Banking Institutions DATES: (1st of September th of October 2014) Course 5: Strategic Corporate Management for Responsible Institutions. CSR DATES: (3rd of November th of December 2014) Module II: Specialisation: Responsible Retail Banking Management DATES: (5th of January th of February 2015) MODULE III: Specialisation: Responsible Corporate Banking Management DATES: (16 th of February nd of March 2015) Cost Foundation Courses: 900 Euros per course Advanced Courses: Euros per course 20