Much is written about the theory of managing and measuring Operational Risk. This course focuses on the practical aspects of delivering robust, sustainable and valueadding Operational Risk management processes into a business. Participants will learn how Operational Risk Frameworks are constructed, how to identify, measure, monitor and manage Operational Risks. They will learn how to construct Operational Risk Appetite statements and support them with Key Risk Indicator frameworks and how to develop Scenarios for analysis and development of Operational Risk capital. Finally, Participants will learn how to construct meaningful Operational Risk reports that will support better decisionmaking in their company.
Understand the fundamentals of Operational Risk Management
Understand all the aspects of the different management techniques of Operational Risks
Understand how to build a Risk Appetite framework and how to manage Key Risk Indicators
Understand how to embed Operational Risk Management within the decision-making process
Be able to recognize how operational risk management can assist the overall business and add value
Diffuse the culture of Operational Risk Management within the institution
International Academy of Business and Financial Management
The International Academy of Business and Financial Management™ is one of the world’s fastest growing professional association with more than 200,000 members, associates and affiliates in 145 countries. IABFM™ hosts and organizes certification training worldwide and offers exclusive board designations to candidates who meet the highest professional standards and assessment criteria. The IABFM is credited by the American National Standards Institute (ANSI) the International Standards setting authority.
Fundamentals of Risk Management
→ Definition and scope of Operational Risk → Current industry drivers of increasing operational risk in Banks → Relationship of Operational Risk to other risk types → Key components of an Operational Risk Framework → Motivations to manage operational risk
The regulatory treatment of Operational Risk
→ Role of supervisors as part of the SREP → Key regulatory influences on Operational Risk → Evolving approaches to regulation and supervision → Regulatory interest in specific Operational Risk categories → Capital adequacy implications of Operational Risk management for Banks
Management of Operational Risk
→ Components of a risk governance framework and how they interact → Roles and responsibilities of the Operational Risk management function → Accountabilities, roles and responsibilities in the management of Operational Risk → Needs and expectations of external stakeholders in relation to operational riskOperational risk as an integral part of the enterprise risk management framework
Governance and Culture
→ Risk Taxonomies → Roles and responsibilities of the board, senior management and support functions → Operational Risk Management Policy Framework → Human Factors
Risk Management Frameworks
→ Available Frameworks → Fundamental nature of Bank regulatory capital requir → The Risk House → Operational Risk under the Basel II accord → Operational Risk under Basel IV (Calculation of Business Indicator, Business Indicator Component, Internal Loss Multiplier and Capital Charge) → Basel IV standardized Measurement Approach → Basel Committee - Revisions to the principles for the sound management of operational risk - August 2020
Risk Management Tools and Techniques
→ Categorization of Operational Risks → Risk & Control Self-Assessment → Issues & Action Plan Management → Incident & Loss Event Management
Operational Risk Appetite
→ What is Risk Appetite → Principles for an effective Operational Risk Appetite Framework → Elements of an Operational Risk Appetite Statement → The Differences between Capacity, Appetite and Tolerance in relationship to Operational Risk Appetite → The process for setting Operational Risk Appetite → The role of Operational Risk Appetite in a Company’s Culture
Operational Risk Heat Map
→ Causes of Operational Risks → Consequences of Operational Risks → Impact of Operational Risks
Key Risk Indicators
→ Role and purpose of different forms of Risk Indicators → Nature and Use of Key Risk Indicators → Types of KRI and relationship to risk levels → Identification of the right KRI → Challenges surrounding Key Risk Indicators → KRI, KPI and KCI → Sustainable Key Risk Indicator Framework
Risk and Control Self-Assessment
→ Modern RCSA → Cultural aspects to the RCSA → Techniques and resources to gather data, perform the RCSA, and monitor and report results → Approaches for assessing and prioritizing Operational Risks → Control Testing and Design
→ Understand the nature of Scenarios → Understand the benefits of Scenario Analysis → Internal and external factors affecting the Scenario assessment process → Approaches for assessing Scenarios → Elements involved in constructing Scenarios → Influences on and forms of bias which may affect Scenario assessments → Methods for validating Scenario outcomes → Challenges in undertaking Scenario Analysis
Operational Risk Reporting
→ Who needs an Operational Risk Report - understand your audience → What and when to report → Derive value from the Operational Risk Report
Operational RiskManagement for Projects
→ ORM for Projects → Essentials of Project Management
Who Should Attend?
This highly practical and interactive course has been specifically designed for
This program will be of benefit to all Risk Management Staff, Internal and External Auditors, and Internal Control Officers.
What language will the course be taught in and what level of English do I need to take part in an LEORON training program?
Most of our public courses are delivered in English language. You need to be proficient in English to be able to fully participate in the workshop and network with other delegates. For in-house courses we have the capability to train in Arabic, Dutch, German and Portuguese.
Are LEORON Public courses certified by an official body/organization?
LEORON Institute partners with 20+ international bodies and associations.We also award continuing professional development credits (CPE/PDUs) for:1. NASBA (National Association of State Boards of Accountancy) 2. Project Management Institute PDUs 3. CISI credits 4. GARP credits 5. HRCI recertification credits 6. SHRM recertification credits
What is the deadline for registering to a public course?
The deadline to register for a public course is 14 days before the course starts. Kindly note that occasionally we do accept late registrations as well, but this needs to be confirmed with the project manager of the training program or with our registration desk that can be reached at +1071 4 1075 5711 or [email protected]
What does the course fee cover?
The course fee covers a premium training experience in a 5-star hotel, learning materials, lunches & refreshments, and for some courses, the certification fee and membership with the accrediting bodies.
Does LEORON give discounts?
Yes, we can provide discounts for group bookings. If you would like to discuss a discount on a corporate level, we will be happy to talk to you.
BIDV Training School
I would like to thank Mile and remarkable team in Leoron for all your support in organizing this course. I also would like to take this opportunity to send a special “thank you” to Philip for all the inspiration you have provided, and enthusiasm that made the class enjoyable. I have to say finding an expert in the field is hard but finding an inspiring trainer like you is even harder. Your knowledge, experience and dedication to the course play a vital role in making this course extra meaningful. The participants highly appreciate your expertise and helpful, charming attitude & teaching method. It has been a pleasure working with all of you and I am very much looking forward to our future cooperation.