For the current public course in London & Dubai click here. 

A 2-day intensive course on Operational Risk Management & Mitigation – From assessment to implementation. 

• The course is relevant for Risk and Operational Risk Managers and Auditors from Central and Investment Banks, Asset and Fund Managers, Pension and Hedge Funds and other financial institutions

By the end of this training you will gain: 

• An understanding of risk in all its facets
• Learn about operational risk in the context of Basel II and beyond
• Techniques for managing/mitigating operational 
• Techniques to implement operational risk management in  practice
• Explore current best international practice 

Course Level: This training has been designed for existing Risk Management Professionals (both beginners and intermediate) who want to enhance their risk management knowledge and skills. 

Description

All too often banks have seen the need to effectively manage their operational risks as simply an issue of complying with the bank's regulator requirements, rather than as a disciplined process that serves to not only ensure a bank's survival but which can, in the long run, contribute to that bank’s financial fortune.   

Main Topics Covered During This Training

• Risk types and Basel II
• Operations Risk in the context of Basel II
• Strategies for managing operations risk: setting up objectives, the governance process and compliance requirements
• Measuring operational risk
• A hands on approach to risk management: policy and structure, designing controls and more
• Examples of operational risk: internal and external fraud; execution and delivery
• Scenario analysis for operational risk management planning

What Will You Learn By The End Of This Training

The aim of the course is to provide:

• An understanding of risk in all its facets
• What operational risk is all about
• Techniques for managing/mitigating operational 
• Coaching risk managers on how to implement them in practice in a banking organization

Who Should Attend

From Commercial Banks, Central Banks, Investment Banks, Asset Management firms’ representatives, Pension Funds, Hedge Funds, Leasing companies, Insurance companies, Fund Managers, Other financial institutions 

• Financial Officers 
• Risk Officers 
• Internal Auditors 
• Operational Risk Managers 
• Staff with roles and responsibilities in operational risk in risk management departments, businesses and central departments

Teaching Method

This is a highly practical course with many real life case studies and exercises. Tutor will be focused on teaching practical strategies that can be taken back to your business and put into immediate effect.

 

• A short history of risk
• Dimension & drivers of risk management
• Business drivers
• Regulatory drivers
• Rating Agencies & risk
• Cross-border implications

• How we categorize risks
• What is covered under Basel II?
• Risk categories
• Basel II risk coverage 
• Operational risk categorization
• The financial risk management environment
• The operational risk management environment 
• The technical Implications of operations risk management

• Capital in financial institutions
• The BIS capital standards 
• Basel’s three pillars 
• Basel’s operational risk options 
• Implementation considerations 
• Implementation of Basel II 
• The Pillar II maze 
• Implementation issues

• The governance process
• Setting risk management objectives 
• Building a risk culture
• Examples of a staff risk culture 
• Examples of management risk culture 
• Why are risk cultures important?
• Compliance requirements 
• Operational risk – definition and examples
• Enterprise Risk Management
• Key elements in managing operations risk
• A selection of case studies to illustrate the material covered
• The banking activity framework - the “Top-Down” approach of the BIS
• Main areas affected by  operational risk
• Key Risk Factors 

• Risk Analysis
• Determining the “Risk Appetite”
• Risk impact/Frequency 
• Impact vs. Probability 
• A generic case study 
• Measurement methods
• The Loss Modeling Method 
• The COSO ERM framework 
• Monte Carlo simulations
• Operational risk & bank strategy
• Quantitative  & Qualitative approaches
• Operational risk & the business cycle 
• Problems in identifying operational risks

• BIS standards for managing operational risk 
• Basic Indicator Approach (BIA) 
• Business Lines Approach 
• Advanced Measurement Approaches (AMA) 
• Loss event types 
• Criteria for the Advanced Measurement Approach 

• Policy & structure
• Developing an appropriate risk management environment
• Implementation
• Mapping risks to controls
• Understanding  risks, goals and priorities
• Prioritizing risk based on probability & impact
• Establishing responsibilities for risk management
• Mapping risk strategies to categories of control 
• Designing & Documenting specific controls
• Implementing risk management controls

Operations Risks - Practical Examples

• Internal Fraud
• External  Fraud
• Employment Practices and Workplace Safety
• Clients, Products & Business Practices
• Damage to Physical Assets
• Execution, Delivery & Process Management
• Business Disruption & System Failures 

Methods for Managing Operations Risk 

• Assessment methods
• Loss data collection (internal & external)
• Using loss data 
• Scenario analysis
• Using realistic scenarios
• Statistical techniques
• Problems and issues in assessing & managing operational risk
  

The Risk Management Process - A 'how to' guide

• Environmental survey
• Technology inventory
• Identifying & assessing the operational risks (including an illustrative operations risk management plan)
• Minimum control requirements
• Risk identification tools
• Control & mitigation of specific operational risks
• Establishing a framework of formal, written policies and procedures

• National Australia Bank
• Société Générale

Richard holds a B.S. in International Business Administration from San Jose State University in California. His professional experience spans 19 years, 5 of which were spent with Wells Fargo Bank. Another 5 were spent honing his global banking skills, when Richard was involved with International Trade Finance, Real Time Gross Settlement and Cross Border Banking. The past 9 years have been in the private and high-tech sectors providing high-level consulting services, business analysis, project management and training to a wide range of banking clientele across the globe.   

 

He has spent extensive time servicing a diversity of “financial institutional” clients, in South Africa, Poland, Sweden, Ireland, Netherlands, Greece, Bermuda, Malawi, United Kingdom and across North America. Clients include AIB Bank, Eurobank, ABSA Bank, CitiBank, Swedbank, INDEbank, IBM, Montran and Fundtech, as well as many others. 

 

Richard has also filled the role of advisor to central banks on payment systems and technical payments issues. Furthermore, key staff from the Bank of England, South African Reserve Bank, Central Bank of Ireland and Bank of Portugal who have attended training sessions presented by Richard.

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If you have a team of 4 or more this course can be customised and organised in-house at your convenience in any of your offices worldwide. Contact one of our advisors to find out more.