Operational Risk Management in Banking Industry

(Concepts • Measurements • Management techniques)

Course Objective

The goal of this two-day workshop is to build an understanding of the importance of operational risk management within the banking industry, and through the practical examples to explore the techniques to review, manage and account successfully for operational risk.

Specifically, the participant will be equipped to:

  • Identify the sources of operational risk and how these arise within the context of financial institutions main business activities
  • Understand the governance structures, systems, procedures and cultural aspects necessary for an organization to successfully manage operational risk
  • Build knowledge of the main techniques for the measurement and quantification of operational risk and their relative merits and drawbacks.

Course Outline

Risk classes and their interconnections:

  • Reputation Risk
  • Strategy Risk
  • Operational Risk

Stages of Operational Risk Management:

  • A Head Office Operational Risk function
  • A dedicated but decentralized support

Categories of Operational Risk as a valid base for solving problems for management:

  • Organisation
  • Policy/Processes
  • Technology
  • Human; and
  • External

Internal Control Framework, Control Objectives and Risk:

  • Objectives and Roles of the Internal Control Framework
  • Efficiency and effectiveness of activities (performance objectives)
  • Reliability, completeness and timeliness of financial and management information (information objectives)
  • Compliance with applicable laws and regulations (compliance objectives)

Measurements of Operational Risk, Practical instruments and tools (followed by examples and worksheets):

  • Control and Risk Self-Assessment (CRSA)
  • Impact & Frequency Scorecard
  • Risk and Process Mapping
  • Operational Risk Dashboard
  • Loss Event Database

Are you interested in this training? 

Feel free to contact us!