PwC s Academy. Risk Management in Banking and Financial institutions

Transcription

1 PwC s Academy Risk Management in Banking and Financial institutions

2 Identifying Preventative Key Risk Indicators 8-9 October 2018 About the Course Useful, preventive key risk indicators (KRIs) flag rises in risks before incidents occur. It is possible to design preventative KRIs, provided organisations understand their risk drivers and are willing to take a renewed look at their reporting practice on performance and controls. Through a combination of presentations and practical exercises, this seminar offers a full review of the role and attributes of KRIs in financial services. It clarifies some confusing ideas about KRIs and offers insight on their role in a risk management framework. The seminar also reviews many examples of the best performing KRIs in banking and financial markets activities and proposes a step by step methodology to select and design preventive KRIs. Course Highlights Receive a comprehensive overview of indicators Understand step by step how to select preventive KRIs Discuss process mapping and control design Apply KRI set to specific risks such as information security and project management Review indicators for risk culture and conduct Use KRIs as performance management tools Learning Outcomes Design an efficient indicator program in a risk management framework Specify relevant indicators for various risks Focus on preventative risk indicators for their own activity Use indicators as an effective management tool Define threshold levels for KRIs that translate corporate risk appetite Comprehend the methods and strategies to use KRIs efficiently Day 1 Risks on the rise, risk appetite and KRI framework Coffee and registration Operational Risk Management trends and top risks: what s on the horizon? Operational risk frameworks in the financial services Framework complete and maturity: The ORM pyramid Exposure and vulnerabilities Rising operational risks and market trends Top risks survey Risk dependencies: the connectivity view Actionable risk appetite Industry guidance on risk appetite Risk appetite, tolerance and limits Structure of actionable risk appetite Cascading risk appetite: RCSA & Indicators Top-down and bottom-up approaches to risk appetite Class discussion and exercises: Define a risk appetite statement for one or two of your top risks Class discussion and experience sharing: rising risks in organisations

3 13.30 Preventive KRIs: a method Selecting and designing KRI steps by step Metrics of risk drivers A typology of KRIs: Exposure, stress, causal and failure KRI design and reporting Group work: Delegates will have the opportunity to apply this method and share their findings with others in a guided exercise Coffee break Root cause analysis for KRI identification Root cause analysis and lessons learnt from large incidents Cause of the cause: The benefits Bow tie tool: Tracking common failures and systematic patterns Identifying causal KRIs Root cause and risk prevention Group work: apply a bow-tie analysis to one of your incidents and share the lessons learnt End of day one Day 2 KRI reporting for special risks: Information Security, Project Management, Conduct and Culture Process mapping and control design Process mapping: Highlights risks and controls at every step KCIs: Assessing controls: Their existence, their effectiveness Typology of controls Typology of human error: The work of James Reason Active and latent errors Prevention by design Group work: Delegates will work on process mapping of relevant activities and share results with the class KRI for Information Security Risks Information security risk assessment method: case study Key controls in information and cyber security KRIs for information security: exposure, failures and stress indicators Reporting & Governance on KRI Reassess your current indicators and select appropriately Lunch KRIs for project risk management & validation Project management and risk management involvement KRI for projects Reporting on projects and changes Testing KRIs: Assess the validity of your indicators Governance around risk indicators: Class discussion and benchmarking: KRI definition and governance in different institutions Coffee break Indicators for Conduct and Risk Culture Conduct and Culture: metrics and behaviours Case study of a Conduct and Culture change programme (2018) Reporting on Culture Other influencers than KPIs Class discussion and benchmarking: People risk, risk culture and indicators End of course

4 ICAAP and Basel III for Operational Risk October 2018 Synopsis This course provides a synthesis of different types of risk management and regulatory context covered by Basel III to build a bank ICAAP (Internal capital adequacy assessment process).there is a particular focus on the SMA capital revision for operational risks and scenario assessment and quantification for capital purposes. This highly interactive workshop will allow participants to directly apply the methods proposed to their own organisation, for concrete take-away of the course. Day 1 ICAAP context & objectives, and scenario assessment Session 1: ICAAP context and SMA reform Regulatory Internal Capital Adequacy Assessment Process (ICAAP) for banks ICAAP and SREP (Solvency Review Evaluation Process), Pillar 2 of Basle The increasing pressure on Pillar 2 following the SMA reform of Operational Risk Capital Regulatory revision operational risk: o from AMA to SMA o SMA rules o What to expect for the future Session 3: Scenario assessment: preparing for the unexpected What are structured scenarios? Simple methods to o Identify scenarios o Reflect on controls and exposures Risk drivers and controls layering Assessing rare events Session 4: Class workshop: identifying & structuring scenarios Session 2: Class workshop: ICAAP practice and challenges Day 2 Brainstorming on scenario identification Group work on scenario structuring, e.g.: cyber-attack, third-party failure, rogue trading ICAAP structure and group exercise + feedback and analysis Session 1: ICAAP content and quality criteria The content of an ICAAP report Business model, Risk profile and Governance: assessing exposure and idiosyncratic risks Risk management framework and its effectiveness: internal controls and monitoring Capital coverage for each risk type Stress-testing and scenario testing o Financial risks o Non-financial risks Wind-down planning Session 2: Class workshop: ICAAP: business model and risk profile Guided exercise: risk identification to the firm s business profile Risk governance and ICAAP Session 3: Resilience and incident management Cross-risks view: interactions between financial and non-financial risks Resilience to external risks Resilience to internal risks Crisis response team Incident management and lessons learnt Session 4: Class workshop - War Games: simulating response to external scenario Priority response when crisis hits Group work and feedback Solvent wind down in ICAAP plan Summarising ICAAP Session 5: Course wrap-up What we have learnt What we will remember What we will apply

5 Course Director: Dr. Ariane Chapelle Ariane Chapelle has a PhD in Economics and is active in operational risk management since 2000, with experience as head of operational risk management at ING Group and Lloyds Banking Group. Ariane Chapelle runs since 2006 her own training and consulting practice in risk management. Her clients include Tier 1 financial organisations such as AVIVA, AXA, HSBC, JP MORGAN and SWIFT. Before running her practice, Dr. Chapelle was the holder to Chair of International Finance ( ) of Solvay Business School (University of Brussels). Dr. Chapelle is Honorary Reader at the University College London in Operational Risk Measurement since 2013, Fellow of the Institute of Operational Risk and member of the editorial board of the Journal of Operational Risk. She is an acclaimed trainer worldwide in operational risk and designs classroom training programmes and course series on ORM certificate for many large organisations, both in-house and in public courses. Her book «Reflexions on Risk Management», published in July 2017 by Risk Books is the collection of her 28 articles written on operational risk management.

6 LKR 145, % NBT Class size: academy.srilanka@lk.pwc.com PricewaterhouseCoopers Academy (Private) Limited, Limited Liability Company incorporated in Sri Lanka. All rights reserved