Operational Risk Management

Global Authorized

     Operational risk has been defined as the risk of direct or indirect loss resulting from inadequate or failed internal processes, people, and systems or from external events. It has been always inherent in business and financial enterprises. The biggest risk in risk management is not seeing the risk!
     Operational risk addresses an entirely different business problem and should be managed first strategically, then tactically. Managing such risk is becoming an important feature of sound risk management practice in modern financial markets. The most important types of operational risk involve breakdowns in internal controls and corporate governance. But it can be managed through a framework of policies, processes and procedures by which business units identify, assess,monitor and control/mitigate their operational risks.
     The training traces some of the drivers and milestones in the development of operational risk management. The risk dimensions of frequency and severity are explained, and the implications for risk mitigation and control are discussed during the course. And this is also an opportunity for participants to get hands-on experience handling operational risk procedures.

What are operational risk and its regulatory framework?
Define operational risk and understand it relative to other risk types
Identify broad categories of operational risk
Analyze several operational risk incident case studies
Describe the operational risk regulatory landscape
Outline the operational risk regulatory framework
Understand sound practices as defined by international regulators
Implementing operational risk management and its benefit
Challenges in risk management
Standards and Best Practices
Approach and Methodology
Experience shared
Key Success Factors
Benefits of risk management
Developing operational risk management awareness
Objectives of operational risk management
Responsibilities
Developing a risk awareness culture
Developing operational risk management procedures
Operational risk management techniques
Self assessment
Allocating operational risk costs

Designing and building a better operational risk environment
Longer-term - integration and rationalization
Process re-engineering and streamlining processes
Removing duplication
STP projects
Systems design and end-user considerations
Single back office and front office
Overcoming resistance and introducing training strategies
Project planning, budgeting and communications
Assigning responsibility for risk policy
Analyzing specific risks of risk management
Technology
Systems failure
Programming errors
Telecoms
People
Incompetence
Fraud
Process
Execution error
Booking error
Transaction and mis-matching of trades

Understanding and exploring the approaches to operational risk governance
Discovering the business benefits of appropriate risk management
Understanding operational risk management implications for enterprise risk management
Effectively capturing risk and control assessments and how to make the data relevant to senior management
Assessing appropriate key indicators and linking indicators to risk and control assessment
Gaining an insight to various Good Operational Risk Management Practices
Implementing IT solutions to mitigate operational risk