Our Fundamental Review of the Trading Book (FRTB) training equips participants with a clear understanding of the Basel III market risk reforms, introduced in response to the 2008 Global Financial Crisis. The new framework addresses weaknesses in pre-crisis capital rules by introducing more risk-sensitive methods.

FRTB requires banks to adopt either the Internal Models Approach (FRTB-IMA) or the Standardized Approach (FRTB-SA) as Basel’s Market Risk Capital new methodology. Focusing on FRTB-SA, participants will learn how capital charges are determined through the sensitivity-based approach (SBA) across risk classes such as interest rate, credit spread, equity, FX, and commodities.

Additionally, participants will also learn default risk charge (DRC) for jump-to-default events, as well as the residual risk add-on (RRAO) for exotic product features. Case studies and hands-on exercises ensure that participants can translate these regulatory models into practical applications for trading book risk management and compliance.