Risk, Governance & Regulation

Under Risk Management, Governance and Regulation, we focus on the following key areas:

• Credit Risk Management, including Policy Development
• Rating & Scoring Development, including Behavioural Finance & Psychometric Scoring
• Financial Risk Management & Capital Markets
• Treasury & ALM (including Liquidity, FX, Interest Rate, Commodities)
• Operational Risk Management, Audit & Control
• Regulatory developments and prudential compliance (e.g. Basel 3, ICAAP, ILAAP, IFRS 9, IFRS 7)
• Risk Sharing Mechanisms & Hedging

For more than two decades, Frankfurt School has successfully implemented risk management frameworks for banks, non-bank microfinance institutions (MFIs), leasing companies and financial cooperatives of various sizes and complexity in emerging and developing markets. As a business school focused on research, teaching and advisory in the field of finance, risk management is one of our core competencies. Each year, around 15.000 professionals enrol in trainings offered by Frankfurt School.

Among the most popular programmes offering risk management modules are: 

• Certified Expert Programmes in Risk Management;
• Certified Expert in Treasury and Markets;
• Certified Expert in Microfinance;
• Inclusive Finance Summer Academy - Risk Management Track;
• Treasury Management;
• Financial Markets Boot Camp;
• Climate Risk Insurance - Product Development Training;

The Frankfurt School Development Finance e-Campus has become a very successful e-learning tool for professionals interested in risk management and treasury topics.

We advise banks, microfinance institutions, investment funds, multilateral agencies and others in the management of risk. Our methodology is based on direct customer support, which involves coaching staff how to understand and monitor the key concepts and parameters of identified risks. Based on previous experience and international best practices, the typical risk management needs can be categorized into a framework of four interdependent risk layers, also depicted in the graph below:

• Central financial risk management themes: credit, market, operational and liquidity risks. 
• A transmission layer of reputation and behavioural risks (highlighted in green).
• The top layers radiate out into the dimensions of compliance and regulatory, covenant and capital adequacy risks (highlighted in blue).
• Finally, a strategy layer interacts with the other risk dimensions such as business risk, model risk and systemic risk.

Risk Management Research

Frankfurt School has the largest faculty of finance professors in Germany. Of our 49 full-time professors, 9 are focused purely on quantitative finance, (derivative) hedging strategies, capital markets and risk management. Many faculty members have published their research in highly ranked journals at the forefront of scientific discovery in the rapidly evolving topic of risk. Other faculty members have held positions as senior risk managers in financial institutions in Germany and abroad. This unique blend of academic rigor and leadership in banking enables our cutting edge research in Risk Management and Regulation, which is unparalleled by other business schools or consulting firms.