Introduction

In today’s highly volatile and interconnected financial ecosystem, stress testing for banks has become a critical component of risk management, regulatory compliance, and financial resilience. Stress Testing for Banks Training Course is designed to equip banking professionals with advanced knowledge and practical tools to conduct scenario analysis, capital adequacy assessments, macroeconomic stress testing, and enterprise-wide risk modeling. Participants will gain deep insights into Basel III/IV frameworks, ICAAP, CCAR, IFRS 9 expected credit loss (ECL), and climate risk stress testing, ensuring institutions remain resilient under extreme but plausible conditions.

The course emphasizes data-driven decision-making, predictive analytics, and forward-looking risk assessment methodologies. Through real-world case studies and hands-on simulations, participants will learn how to design, implement, and validate bank-wide stress testing frameworks aligned with global regulatory expectations. The program integrates AI-driven risk analytics, fintech innovations, and digital transformation trends, empowering banks to proactively manage systemic risks, liquidity shocks, and credit exposures in an increasingly complex financial landscape.

Programme Curriculum

Stress Testing for Banks Training Course

Introduction

Course Duration

5 days

Course Objectives

Develop expertise in enterprise-wide stress testing frameworks
Understand Basel III/IV stress testing and capital adequacy requirements
Apply macroeconomic scenario analysis and forecasting techniques
Design credit risk stress testing models and ECL projections (IFRS 9)
Evaluate liquidity risk and funding stress scenarios
Implement market risk stress testing using VaR and sensitivity analysis
Strengthen ICAAP and internal capital planning processes
Analyze climate risk and ESG stress testing frameworks
Enhance data governance and model validation techniques
Integrate AI and machine learning in stress testing models
Conduct reverse stress testing and scenario design
Improve regulatory reporting and compliance
Build resilient risk management strategies under extreme conditions

Target Audience

Risk Management Professionals
Credit Risk Analysts
Treasury and ALM Specialists
Regulatory Compliance Officers
Internal Auditors
Financial Analysts and Economists
Banking Executives and Decision Makers
Data Scientists in Financial Institutions

Course Modules

Module 1: Fundamentals of Stress Testing in Banking

Overview of stress testing concepts and frameworks
Types: sensitivity, scenario, and reverse stress testing
Regulatory landscape
Role in enterprise risk management (ERM)
Case Study: Lessons from the 2008 Global Financial Crisis

Module 2: Regulatory Frameworks and Compliance

Basel III/IV capital requirements
ICAAP and supervisory expectations
CCAR and stress testing governance
Regulatory reporting standards
Case Study: CCAR failure and remediation strategies

Module 3: Macroeconomic Scenario Design

Economic indicators and forecasting models
Scenario generation techniques
Linkages between macro variables and bank performance
Stress severity calibration
Case Study: COVID-19 economic shock scenarios

Module 4: Credit Risk Stress Testing

Probability of default (PD), LGD, and EAD modeling
IFRS 9 expected credit loss (ECL) integration
Portfolio segmentation and risk drivers
Credit concentration risk analysis
Case Study: Corporate loan portfolio stress analysis

Module 5: Market Risk Stress Testing

Interest rate and FX shocks
Value at Risk (VaR) stress adjustments
Trading book stress testing
Sensitivity and scenario analysis
Case Study: Bond market volatility impact

Module 6: Liquidity Risk and Funding Stress Testing

Liquidity coverage ratio (LCR) and NSFR
Cash flow stress scenarios
Contingency funding plans
Intraday liquidity stress testing
Case Study: Bank run simulation scenario

Module 7: Advanced Analytics and Model Validation

Model development and backtesting
Data quality and governance
AI and machine learning applications
Model risk management frameworks
Case Study: Model validation failure and correction

Module 8: Climate Risk and Emerging Stress Testing Trends

Climate and ESG risk integration
Transition and physical risk scenarios
Digital banking and cyber stress testing
Fintech disruptions and systemic risks
Case Study: Climate stress testing for loan portfolios

Training Methodology

Interactive lectures and presentations.
Group discussions and brainstorming sessions.
Hands-on exercises using real-world datasets.
Role-playing and scenario-based simulations.
Analysis of case studies to bridge theory and practice.
Peer-to-peer learning and networking.
Expert-led Q&A sessions.
Continuous feedback and personalized guidance.

Register as a group from 3 participants for a Discount

Send us an email: info@fineskilltrainingcenter.org or call +254769199797

Certification

Upon successful completion of this training, participants will be issued with a globally- recognized certificate.

Tailor-Made Course

We also offer tailor-made courses based on your needs.

Key Notes

a. The participant must be conversant with English.

b. Upon completion of training the participant will be issued with an Authorized Training Certificate

c. Course duration is flexible and the contents can be modified to fit any number of days.

d. The course fee includes facilitation training materials, 2 coffee breaks, buffet lunch and A Certificate upon successful completion of Training.

e. One-year post-training support Consultation and Coaching provided after the course.

f. Payment should be done at least a week before commence of the training, to Fineskill Training Center account, as indicated in the invoice so as to enable us prepare better for you.

Skills & Software Covered

Scenario Analysis Risk Assessment Capital Planning Resilience Testing

Programme Fee

Duration: 5 Days

Method: Online or Physical

Online Price: $1,000

Physical Price: $1,500

Certification: Accredited Certificate

View Available Dates 📄 Download Course Outline (PDF)

Available Sessions

Location

Month

Year

Oct 26 2026

26 Oct — 30 Oct 2026

💻 Online / Virtual session

Online $1,000