The Fundamentals of Operational Risk Management
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London Stock Exchange, London
Participants will gain an understanding of the fundamentals of operational risk in financial services, as well as focus on the core components of the Operational Risk Framework – Losses and Near Misses, Risk and Control Self-Assessments and Key Risk Indicators.
Operational Risk discipline has developed and moved a long way since its early years. With continued regulatory focus and catastrophic industry events, Operational Risk has become a crucial topic of the Senior Management’s agenda.
Interactive, practical one-day Operational Risk course will leave the delegates with a broad knowledge of how operational risk is defined and distinguished. Participants will gain an understanding of the fundamentals of operational risk in financial services, as well as focus on the core components of the Operational Risk Framework – Losses and Near Misses, Risk and Control Self-Assessments and Key Risk Indicators. Delegates will be also introduced to the challenging subject of Operational Risk Appetite.
Participants will review case studies of recent operational risk failures, practice identifying ‘Top Risks’, defining impactful Key Risk Indicators and developing a risk appetite statement.
The course, updated every year with latest developments and highly rated by participants, examines Operational Risk from a very practical perspective, focussing on implementing processes that add value to the workplace. It is also instrumental in helping the delegates understand key areas of regulatory focus in the UK and globally.
Operational Risk remains high on the regulatory agenda. This interactive course provides an essential update for senior executives and risk and control professionals, allowing to:
- Understand how Operational Risk discipline has progressed over the years and why it remains in focus
- Review the approaches to building an effective Operational Risk Framework
- Structure a value-added operational risk identification and assessment program
- Understand how to integrate Operational Risk with Business Strategy
- Attain best practice in Loss data collection, RCSA and Key Risk Indicators (KRIs)
- Find meaningful ways to define an operational risk appetite
- Review case studies and practise through group exercises
- Interact with fellow practitioners
- Benchmark the maturity of your Operational Risk framework with peers
Who should attend?
This one-day course has been designed to appeal to the following professionals:
- Directors and senior executives
- Heads of internal audit, compliance and risk functions
- Operational risk managers
- Compliance officers
- Audit professionals
- Operations managers
- Governance and Control professionals
- All those individuals responsible for implementing best practice operational risk management practices in their organisation
CPD points: This course attracts CPD points for 6 learning hours.
8:30 - 9:00 Registration and Coffee
9:00 - 9:30 Welcome and Introduction
- Objectives for the course and participant’s expectations
- What is Risk? And how to help your employees think about Risk
- Operational Risk – definition and basics
- Group Discussion: Current regulatory, stakeholder and practitioners’ views on ORM
9:30-10:30 Operational Risk Events (Losses & Near Misses)
- Definitions and Examples – Losses, Near Misses, Gains
- Exercise: Are these Operational Risk events?
- Collection and analysis – process and challenges
- Basel Committee Loss Data Collection Study
- Group Work: examining recent case studies
10:45 – 12:30 Risk Identification and Assessment
- Risk and Control Self-Assessments – the concept and the question it raises
- Various approaches to conducting RCSAs – Process, Strategic
- Integrating Operational Risk with Business Strategy
- Risks: Impact and Likelihood
- Importance of Inherent and Residual risk
- Control assessment: judgemental evaluation or testing
- Group Work: identifying and rating ‘Top Risks’
- Industry Sources: Top and Emerging risks
12:30- 13:30 Lunch
13:30-15:15 Key Risk Indicators
- Key Risk and Key Control Indicators
- Various approaches to KRI identification
- Attributes of good indicators
- Exercise: practicing in defining KRIs and setting the thresholds
- KRI Dashboard in action
- Case study: UBS
15:30-16:30 Operational Risk Appetite
- Different views - is there return-on-investment from taking Operational Risk?
- Expressing Operational Risk appetite using essential OR tools
- Group Study: evaluation of Appetite Statements expressed by peer banks
- Exercise: practicing in developing a risk appetite statement
16:30 – 17:00 The OpRisk Wrap-Up
- Conclusions and key take-aways from the day
- Any remaining questions answered
- Building an individual Action Plan