Operational Risk. A 3-day course. This course can also be presented in-house for your company or via live on-line webinar

Transcription

1 Operational Risk A 3-day course This course can also be presented in-house for your company or via live on-line webinar The Banking and Corporate Finance Training Specialist

2 Course Objectives At the end of this seminar participants will have a basic understanding of: 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 oeprational risk management monitoring and Course reporting Overview 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) o Impact of the new SA on capital o 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 Cyber Crime/Data security Anti-money laundering, counter terrorist financing & sanctions Tax & FATCA Conduct risk Case study Strategic operational risk management - governance Day 2 Risk identification & Assessment

3 Risk logs/registers Indentifying 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 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

4 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 Case study Evaluating KRIs Business continuity planning vs. Disaster planning What Next? What are the problems in practice? The use test What next future flashpoints? 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 minimize 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

5 Redcliffe has provided in-house training for the following companies: (0)

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)