The Fundamentals of Operational Risk Management
2 Jul 2020
Participants of this two-day digital classroom course will gain an understanding of the fundamentals of operational risk in financial services, as well as focus on 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, digital two half-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 digital classroom 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.
Fundamentals of Operational Risk Management
Four 90-minute Workshops
1 July 2020- 09:30 - 12:30
Workshop 1: Introduction and Core Framework Tool: Operational Risk Events
- Objectives of the course and participants’ expectations
- What is Risk? And how to help your employees think about Risk
- Operational Risk – definition and regulatory expectations
- Live Poll and discussion: current successes and challenges
Operational Risk Events
- Definitions and examples – Losses, Near Misses, Gains
- Examining the process: how does it work in practice?
- Building for Success: overcoming cultural and process challenges
- Group Work: review of an industry case study
Workshop 2: Core Framework Tool: Risk and Control Self-Assessments (RCSAs)
- Risk and Control Self-Assessments – the concept and the question it raises
- Three approaches: Process, Strategic, Departmental
- Understanding Risks: Failure of a control is not a risk!
- Defining Controls: ‘Key’ controls, 4 Types, Assessment and Testing
- What works and what doesn’t: tips and hints from 20+ years of experience
- Defining Measures of Success
- Group Work: identifying and rating ‘Top Risks’
- View from Best Practice Operational Risk Forum: Top and Emerging risks
2 July 2020- 09:30 - 12:30
Workshop 3: Core Framework Tool: Key Risk Indicators
- What are KRIs and why are they needed
- Practical examples of indicators and their value-add
- KRI useful or useless? Attributes of good indicators
- Exercise: practicing in defining effective KRIs and setting the thresholds
- Aggregation: judgement- and rule-based
- Live poll and discussion: using Key Risk Indicators
- Group Work: review of an industry case study
Workshop 4: Mastering Operational Risk Appetite and Course Wrap-up
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 firms
- Exercise: practicing in developing a risk appetite statement
- Conclusions and key take-aways from the day
- Any remaining questions answered
- Building an individual Action Plan