Operational Risk. A Three Day course

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1 Operational Risk A Three Day course This course can be presented in-house either on your premises or via live webinar for a group of 3 or more participants. Trusted By: The Banking and Corporate Finance Training Specialist

2 What Makes This Course Different Share the experience of a trainer who has been involved in operational risk for over 25 years Up to date on major operational events, giving an insight into how they can be avoided Covers the latest regulatory changes and their impact on operational risk management Includes the top 10 operational risks concerns banks have had in the last 12 months Prepares attendees for the impact on operational risk from the new technology driven financial products being developed over the next few years The course has Course been Overview delivered to many banks and financial institutions around the world Course Objectives What operational risk is and why it is managed The regulatory requirements The activities in managing operational risk The identification and self-assessment process Managing operational risk events The new regualtions and their impact on operational risk management Monitoring and reporting The use of internal and external data The development and use of key risk indicators Course Content Day 1 What does operational risk really mean and why does it really matter What does operational risk really mean? Defining the scope of operational risk Operational risk terminology Operational risk types Types of loss financial, regulatory, soft Risk Appetite Drivers of Operational Risk management Why manage operational risk? The Basel II Accord regulatory drivers Case Study The Basel III/IV changes the new Standardised Approach (SA) Impact of the new SA on capital Impact of the new SA on management Other cross-border Operational risk management Operational risk management activities The operational risk framework What falls under operational risk management? Where does the ORM team fit in an organisation? The three lines of defence Adopting standards The main challenges IT stability

3 Cyber Crime/Data security Anti-money laundering, counter terrorist financing & sanctions Tax & FATCA Conduct risk Strategic operational risk management - governance Day 2 Risk identification & Assessment Risk logs/registers Identifying operational risks What are Risk Control and Self Assessments? Are RCSAs useful what is there real value? Questionnaires vs. workshops The psychology of RCSAs Industry sound practice Risk identification, causes and classifications The challenges of implementing effective controls Loss data Why collect operational risk data? Implementing a loss database database technology Loss data content The challenges of internal loss data. Defining gross loss Which reference date? The new Internal Loss Multiplier and Loss Data Collection External loss data Building scenario analysis and stress testing Sensitivity analysis vs. stress testing vs. scenario analysis Scenario analysis - uses Developing credible scenarios fact or fiction? Multiple event scenarios and dependencies Building scenarios and stress tests Learning from past events Key issues of scenario analysis : building a realistic scenario what is reasonable? Including stress and scenario testing results in capital calculations Day 3 Mitigating operational risk What is operational risk mitigation? What are inherent and residual risks? Mitigation techniques People Technology

4 Processes External events Identification of key controls : identifying appropriate mitigating techniques The challenges of implementing effective controls Op risk events and their management Event management Event reporting Internal External Managing reputational risk On-going monitoring Exercise Operational risk monitoring and reporting The reporting process Types of reports Thresholds & escalation What gives a report value? Monitoring operational risk Key risk indicators What are KRIs? The role of effective KRIs Types of KRIs Developing and designing key risk indicators Evaluating KRIs Business continuity planning vs. Disaster planning What Next? What are the problems in practice? The use test What next future flashpoints? Background of the Trainer The trainer is a senior risk management consultant and trainer who specialises in operational risk, risk regulation, financial crime compliance and corporate governance. He is also an accomplished soft skills trainer. He is a senior level operations and risk professional with more than 30 years experience which includes being a Chief Operating Officer and IT Director in a major UK bank. He is a pioneer of risk technology having implemented one of Europe s first risk data warehouses in the mid-1990s. He is now an experienced commercial trainer known for his practical know-how and hands-on approach, with the ability to communicate complex issues effectively. He has provided consultancy services and training around the world, working with central banks, banks, professional associations, training companies and consultancy firms in Europe, Eastern Europe, Africa, the Middle East, Asia and Far East.

5 Course Summary Operational risk is one of the few risks which affect all business functions irrespective of their activities or environments. As such all business managers and team leaders have a responsibility for understanding the operational risks within their business and ensuring that they comply with their organisations policies. They are also expected to understand and implement policies and procedures which minimise the risk and to manage events when they occur. These techniques cover a multiple of disciplines ranging from people management through to data protection, many of which can improve business efficiency. This seminar is designed to explain the fundamentals of operational risk, what it is and why it is managed, the identification and assessment process, techniques for its mitigation and management and the monitoring and reporting process. Attendees This seminar is designed for the front, middle and back office business functions of banks. It is intended for: Business managers and team leaders who have responsibility for ensuring the business function complies with their organisations operational risk policies Individuals who are responsible for implementing their organisations operational risk policies Individuals who are responsible for operational risk monitoring or reporting Risk managers Internal and external auditors who wish to gain an understanding of operational risk Business managers who are concerned about risk and controls IT and operations professionals Project and change management professionals

6 Tailored Learning All of our training courses can be tailored to suit your company s exact training needs. We will work closely with you to help develop a training programme with content that is unique for your organisation. Please us on enquiries@redcliffetraining.co.uk for more information E-Learning This course can also be presented as a bespoke e-learning programme created by you to fit your exact requirements. enquiries@redcliffetraining.co.uk +44 (0)