operational risk in banking and financial institutions us...
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Operational Risk in Banking & Financial Institutions 3-Day Practical Workshop
May 16 - 18, 2016 & October 19 - 21, 2016
Miami, USA
This practitioner-led 3-day intensive fully accredited course is designed for professionals in the banking, insurance and financial services industry seeking to enhance their knowledge in the operational risk arena. The course describes operational risk, governance, tools, techniques, what it means to the financial sector and where operational risk sits within the risk framework.
This is the same CISI accredited preparatory course toward achieving the
internationally recognized CISI Operational Risk certificate (Level 3). An exam and
certificate option is available but not mandatory.
Key Topics
� Overview of Risk Management
� Nature of Operational Risk
� Modelling approaches
� Causes, Consequences and Impact of Operational Risk Events
� Operational Risks Arising in the Trade Cycle
� Business processes
� Support and Control Functions
� Operational Risk in the Regulatory Environment
Who should attend?
The course is appropriate for all Risk Management staff, Analysts, Internal and External
Auditors, IT and Operations professionals, Business Managers and Non-Executive Directors
Methodology
Practitioner-led, highly interactive classroom learning using up-to-date case studies &
practical exercises.
Course features:
• Expert trainer with practical industry experience
• Content-rich slides for desk reference
• CISI Study Guide & Workbook (for exam preparation)
• 90 day Email Q & A Service with Practitioner following the course
• Complimentary Membership in Risk Reward Global Risk Forum & Subscription to
Risk Reward Global Risk Update & past articles
For an in-house training option, alternative dates and locations are available. We are happy to add extra content to the program to meet additional requirements from your company. Please contact us for further information. www.riskrewardlimited.com
Advanced Preparation: None
Training Type: Group-Live
Learning Level: Intermediate
Field of Study: Risk Mgt
Group Booking Discount*
2 delegates - 3 delegates - 4 delegates -
5% discount 10% discount 15% discount
*Available for delegates form one organisation attending the same course
Early Bird Discount
ONLY $2,495
I never imagined the great impact
of the operational risk on the
business as a whole before
attending this course...I got a lot of
ideas to implement in my
department/bank.
J.G., Head of Internal Audit
– Banco Nacional Ultramarino
Risk Reward Limited ICYC|16900 N Bay Rd | Tower 3 Suite 2505 | North Miami Beach | 33160 Florida USA
Miami | + 1 305 831-4913 | New York +1 917 310-1334 | [email protected]
Course Director: Dennis Cox is an international banker, risk management and internal audit specialist serving banks, regulators
and financial institutions with 30 years international experience in developed and New Markets. With a risk and audit career encompassing HSBC, Prudential Portfolio Managers, Ernst &Young and BDO Dennis, as CEO of Risk Reward Ltd advises banks on all areas of risk management, the modernization of bank internal audit and the auditing of compliance risk areas to maintain competitiveness and growth. He is a specialist in risk and audit for bank credit, treasury, operations and accountancy issues related to the Basel Accord and Dodd-Frank, insurance and bank risk and managing changing regulatory environments in turbulent global markets. He is a Fellow, Co-founder and recent Chairman of the Risk Forum for the UK Chartered Securities and Investments Institute (CISI) and holds degrees in mathematics and chartered accountancy. Dennis is a Euromoney risk conference chairman, the Editor-in-Chief of The Global Risk Update, the author of The Frontiers of Risk Management, The International Handbook of Money Laundering Deterrence, Banking and Finance: Accounts, Audit and Practice and The Mathematics of Banking and Finance.
Miami | + 1 305 831-4913 | New York +1 917 310-1334
[email protected] www.riskrewardlimited.com
Operational Risk in Banking & Financial Institutions
Detailed Course Description
Day 1 - Operational Risk Management
Session 1: Overview of Operational Risk Management
• What is operational risk?
• Relationship to other risk classes
• The role of the Board
• The role of the Audit Committee
• The role of non-executive directors
• The responsibilities of the operational risk management function
• Matrix management
• The relationship to the internal audit and legal functions
• What is risk appetite or risk tolerance, how is it calculated and how
is it distributed within a business?
Case Studies:
• Review the published structures of listed companies and consider
what structures are appropriate for companies of differing sizes
• Calculation of risk appetite
Discussion Question: To what extent should risk appetite be used for
economic capital modeling within a business?
Session 2 – Development of an Operational Risk Framework
• Development of operational risk policies
• Development of an operational risk framework
• The importance of flowcharting procedures
• Business process modeling
• Identification of key controls
Case Study: Flowcharting of business processes
Session 3 – Development of key process and risk indicators
• What is a key process indicator?
• What is a key risk indicator?
• How to design key risk or performance indicators?
• How many indicators are suitable?
• Relationship to quality modeling systems
• Reporting of indicators and the balanced scorecard
Case Study: Development of key risk indicators
Discussion Question: How many indicators might be suitable for a
company?
Day 2 – Operational Risk Management
Session 4 – The Risk Register
• What is a risk register?
• How should a risk register be developed?
• Prioritization of risks
• Assessment of severity
• Assessment of likelihood
Case Studies:
• Develop a key risks register
• Assess severity and likelihood
Session 5 – Control and risk self assessment
• The role of control and risk self assessment within risk
management
• The relationship of risk management to corporate governance
• Demonstration of a corporate governance product
• Presentation of a typical control and risk self assessment product
• How to implement control and risk self assessment in a corporate
environment
• Consideration of cost and reward from controls
• Reporting control and risk self assessment
• What are the problems?
Discussion Question: Consider how to maintain adequate quality over the
control and risk self-assessment process and what might be criteria
identifying failures in the process
Case Study: Consider how to audit control and risk self-assessment
Session 6 – Non Goal Correlated Events
• What is a non-goal correlated event?
• Personal vs. corporate risk appetite
• Unexpected profits and unexpected losses
• What is really unexpected?
• To what extent are events captured within product pricing?
• What is the role of capital?
• Maintenance of loss databases
• Relevance of loss data
Case Study: Consider why losses may not be relevant to an institution
Discussion Question: To what extent do you intend to include losses
within economic capital modeling?
Good Focus on the governance
And risk management issues.
Rothschild Bank
Miami | + 1 305 831-4913 | New York +1 917 310-1334
[email protected] www.riskrewardlimited.com
Session 7 – Building the final framework?
• How to build all the tools into a consistent framework
• How to combine this with economic capital modeling
• How to combine this with corporate governance rules in particular
• Conclusions
Discussion question: How much operational risk management is
sufficient for a company?
Day 3 – Banking Operational Risk Management
Session 8 - The Structure of Operational Risk within Banking
• What is operational risk within banking?
• The Basel Accord options (updated for new rules)
• Calculating the operational risk capital charge under the basic and
standardized approaches
• Boundary issues with credit risk and market risk
• Stages in building a operational risk framework
• Development of a risk appetite
Case Study: Calculation of risk appetite for a bank
Discussion question: How long should a risk framework be and how
should it be kept up to date?
Session 9 - The Specific Building Blocks
• Risk identification
• Implementation of a risk register
• Assessing severity and likelihood
• Undertaking business process modeling
• Implementation of control and risk self assessment
• Development of Key risk indicators
• Impact of outsourcing
Case Studies:
• Assessment of severity and likelihood for a bank
• Development of key risk indicators for a bank
Session 10 - Loss data analysis
•
Internal loss database development
• The problems with internal loss data
• How to use external loss data
• Data scaling
Case Study: Development of a Basel compliant internal loss database
Session 11 - Stress Testing and Scenario Modeling
• What is sensitivity analysis and how should it be conducted?
• What is stress testing?
• At what confidence level should stress testing be conducted?
• Stress testing within the banking community – what is currently
undertaken?
• What is scenario modeling?
• How extreme should scenario modeling be?
• Scenario modeling and lessons from the past
• How does operational risk management relate to business
continuity planning?
• What is the role of insurance
• How should outsourcing be considered?
Case Studies:
• Sensitivity analysis
• Stress testing
• Scenario modeling
• Business process modeling and cascading risk
Discussion question: To what extent is insurance included within
operational risk management?
• Severe business continuity planning
Case Studies:
• Lessons from major disasters
• Stress testing and scenario modeling in banks
The CISI is the UK’s largest and most widely respected professional body for the Securities and Investment industry. CISI Certificates are included in the UK’s Financial Services Skills Council’s list of Appropriate Examinations and are recognised for all major activities.
Very helpful at building foundations on operational risk. Good, big picture
explanations as well as right level of detail. Very focused.
C.T., Private Banker
Tel: + 1 305 831-4913 [email protected] www.riskrewardlimited.com
Miami | + 1 305 831-4913 | New York +1 917 310-1334
[email protected] www.riskrewardlimited.com
Operational Risk in Banking & Financial Institutions
Prices & Booking
3-Day Practical Workshop
Miami, USA
Please mark X in the box and complete the form with BLOCK LETTERS
Dates: May 16 - 18, 2016 October 19 - 21, 2016
Course Fee:
$2,795.00 USD
Early Bird $2,495.00 USD – Only, if you submit your booking form and pay by February 29, 2016 or August 31, 2016 (as relevant)
Please register me for the Optional CISI Examination & Certificate Package at the additional price of $350
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Signature Date
Risk Reward Limited ICYC|16900 N Bay Rd | Tower 3 Suite 2505 | North Miami Beach | 33160 Florida USA
Miami | + 1 305 831-4913 | New York +1 917 310-1334
[email protected] www.riskrewardlimited.com
UK Companies House # 434 6234.
Excellent coverage, style good knowledge in one subject. This
course gives a helicopter view of Risk. An effective way of
managing operations risk was learnt.
Shan Shan Sabliyasnagam, Op Risk - QNB
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