Risk Education · Training
Basel 3.1 training from RiskTAE is a practitioner-led course on the PRA’s final Basel 3.1 rules, which apply to UK banks, building societies and PRA-designated investment firms from 1 January 2027. We design and teach it in-house for a firm’s risk, finance, treasury and capital teams, and as a white-label course for training providers.
Your team leaves able to run the new risk-weighted asset calculations on your own balance sheet and explain to the board why each ratio moved.
By Mark Dougherty, CPA (CAN)Updated
Audience
The people who will produce the numbers on 1 January 2027 and stand behind them.
That means the capital or prudential risk team that calculates risk-weighted assets, the regulatory reporting team that files the new returns, the finance and treasury staff who own the capital plan, and the credit risk managers whose data feeds all of it. Internal audit and model validation belong in the room too.
Directors need a different session: our board risk training treats Basel 3.1 as the questions to ask about the first capital plan under the new rules.
Outline
A starting point that we cut or extend to match your firm’s approaches: a lender with no internal models skips module 3 and most of module 5.
| Module | What it covers | Rules taught |
|---|---|---|
| 1. Scope and timetable | The regimes and the dates: Basel 3.1 from 1 January 2027, the market risk internal model approach from 1 January 2028, the SDDT regime for firms that opt in. | PS1/26; PS4/26 |
| 2. Credit risk, standardised approach | Loan-splitting for residential mortgages (20% up to 55% of value), whole-loan weights where repayment depends on the property, assessing every existing exposure for that dependence by 1 January 2027, and the new weights for unrated corporates and SMEs. | CRR Instrument 2026, Articles 122 and 124F to 124G; PS1/26 para 2.6 |
| 3. IRB | Which portfolios leave IRB, including central governments, central banks, equity and advanced IRB for corporates with revenue above £440 million; the PD, LGD and EAD input floors; slotting or the standardised approach for income-producing real estate. | PS9/24 chapter 3; PS1/26 para 2.10 |
| 4. Operational risk | The Business Indicator built from the financial statements, the 12%, 15% and 18% marginal coefficients, and an internal loss multiplier fixed at one. | Operational Risk Part 5.8 and 5.9 |
| 5. Market risk and CVA | The trading book boundary, the advanced and simplified standardised approaches, and the alternative, basic and standardised approaches to CVA risk. | PS1/26 chapter 3; PS17/23 chapter 4 |
| 6. Output floor | Total risk exposure amount as the higher of un-floored RWAs and the floor share of standardised RWAs with the provisions adjustment, from 60% in 2027 to 72.5% from 1 January 2030, and where in the group it applies. | CRR Instrument 2026, Article 92 |
| 7. Pillar 2A, the ICAAP and reporting | The off-cycle review, the end of the refined methodology, the Phase 1 Pillar 2A review and the lending adjustments; then the ICAAP, the new returns and the Pillar 3 templates. | PS9/24 chapter 6; PS2/26; PS15/26; PS1/26 |
Sources: PRA, PS1/26 with Appendix 1, PS4/26 and PS2/26, all 20 January 2026; PS9/24, 12 September 2024; PS17/23, 12 December 2023; PS15/26, 28 May 2026.
Faculty and method
By people who have done this work in front of a regulator, with your own numbers on the screen.
Faculty come from our bench: former chief risk officers and heads of risk, former regulators and interim executives, and model and quant specialists, alongside professional trainers. Risk Education is led by Mark Dougherty, CPA (CAN), who has written online courses on the Basel reforms and contributes risk management lectures to the University of Cambridge’s Banking Executive Programme.
Case material is your own framework, models and regulatory history. Exercises use your numbers where you provide them: a mortgage book to split and risk-weight, financial statements to turn into a Business Indicator. Because the same firm writes ICAAPs and builds the RisKIT models, a live Basel 3.1 model can sit in the room.
Length and formats
We design to three lengths: a two-hour briefing for a board or executive committee, a one-day course on the standardised approaches, operational risk and the output floor, or a two-day workshop that adds IRB, market risk and CVA and works through Pillar 2A and the ICAAP on your own figures.
Delivery is on site, online or a mix, and we have taught worldwide, including the UK, the Middle East, Africa and South Asia. Training providers can commission the same course as white-label training, under their brand and to their format. There are no public dates: every course starts with a 30-minute scoping call about the audience and what they must be able to do afterwards, followed by a proposed outline.
Afterwards
The team can run the new calculations and defend them.
In practice: risk-weighted assets recalculated and reconciled to the current rules, movements explained line by line, a capital plan that carries the output floor and the Pillar 2A changes, and a first ICAAP under the new rules that the board can challenge rather than receive. Where we are already doing the recalculation through Basel 3.1 advisory and consulting, the course is the handover to the people who will run it.
For the changes in writing first, see our article What Basel 3.1 changes for UK banks on 1 January 2027.
Practitioner view
Three things, all avoidable.
Sources: PRA, PS1/26, 20 January 2026, para 2.6; PS2/26, 20 January 2026; PS9/24, 12 September 2024.
FAQ
No. We run it in-house for a single firm and as a white-label course for training providers, so there are no open-enrolment dates or venues. Tell us who the audience is and we will propose an outline and dates.
Yes. It rests on PS1/26, the PRA’s final rules of 20 January 2026, which made no substantive change to the near-final policy outside market risk. Where a rule is still moving we say so rather than teach a proposal as settled.
Where the audience needs it. The SDDT capital regime applies from the same date and puts a single capital buffer and simpler Pillar 2A methodologies on top of the Basel 3.1 standardised approaches. For an SDDT we teach modules 2 and 4 in full and swap the output floor and IRB modules for the regime’s own features; see our SDDT regime page.
Each course is priced after the scoping call, because the length and the audience set the cost. We make no claim to CPD accreditation; firms record attendance in their own training and fitness and propriety files.
Insights
The Basel 3.1 output floor stops a firm’s modelled risk-weighted assets falling below a set share of what the standardised approaches would produce. In the UK it starts at 60% on 1 January 2027 and rises...
By Mark Dougherty, CPA (CAN) · 7 min read
The UK’s version of the Fundamental Review of the Trading Book (FRTB) arrives in two steps. From 1 January 2027 the new trading book boundary and the two new standardised approaches apply with the rest of...
By Mark Dougherty, CPA (CAN) · 7 min read
Basel 3.1, the PRA's version of the final Basel III reforms, applies to UK banks and building societies from 1 January 2027. It reworks the standardised approaches and phases in an output floor that reaches 72.5% of standardised risk-weighted assets on 1 January 2030.
By Mark Dougherty, CPA (CAN) · 7 min readNext step
Tell us who the audience is and what they need to be able to do afterwards, and we will propose a course outline.
Tell us who the audience is and what they need, and we will propose a course outline.
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