Investment Operations

Operational Risk Management

Course Instructor

Course Level

Intermediate

Certification

Certificate

Delivery

Via Zoom

Hours (EST)

12:30 pm - 4:30 pm​

Description

Date: TBD

Do you have limited resources to implement an operational risk framework? Are you trying to determine the vital elements of a successful operational risk program? Are you unsure where you should focus your efforts to ensure you meet your business and regulatory requirements? Do you want to learn the do’s and don’t’s of a successful and practical approach to operational risk management? Would you like to have proven generic templates to kick-start your program? The Operational Risk Management virtual course will cover the following:

  • Identify the central issues in operational risk management
  • Define the five essential elements of risk management
  • Distinguish between the three operational risk approaches
  • Evaluate the various models of risk – including the Swiss Cheese model and Normal Accident theory
  • Understand how financial institutions undertake Controlled Self Assessments (CSA’s) and where potential opportunities exist– Lowering Capital requirements under AMA vs. Capital Increase
  • Link various forms of Operations Risk, Basel II and Basel III
  • Compare and contrast VaR and RAROC for Operational Risk
  • Evaluate the impact of Insurance on hedging operational risk
    1. The role of AIG?
    2. Now, the role of the U.S. (& other) Gov’t’s
    3. The role of CCPs to mitigate settlement Risk

Who should attend

  • Operational Risk Managers and Analysts
  • All Operations Staff
  • All IT Staff
  • Risk Managers
  • Compliance Officers
  • Regulator
  • Auditors
  • Supervisors
  • ERM Managers

Prerequisite: None

Day 1

Risk Management Overview

  • Overview of Risk Management
  • Describe the 5 essential elements of Risk Management
  • Describe what “normally goes wrong”
  • Describe how Risk may be aggregated and mitigated

Intro to Operational Risk

  • Definitions of Operational Risk
  • Examples of significant Operational Risk losses
  • Swiss Cheese Model of OR
  • Normal Accident theory

Definition of Risk Classes

  • To illustrate the potential forms of Operational Risk losses
  • To describe the Basel Risk categories for loss data capture and how they are now relevant to all Financial Institutions – by LOB
  • Moving from Basel I & II to Basel III
  • Is there a Basel IV?

Day 2

Control Self Assessments

  • To consider the use of qualified assessments of Operational Risk
  • To review how Risk and quality can be measured in a subjective fashion
  • To illustrate the use of a self-assessment scorecard for the prediction of future Operational losses
  • To discuss how CSA’s would be identified for Asset Managers

Operational VaR

  • To describe how a Value at Risk number for Operational Risk can be calculated using a “loss” data approach
  • The Actuarial Model
  • Severity Distribution
  • Frequency Distribution

Insurance and Risk Financing

  • Risk Finance options
  • Conventional insurance
  • Moving from conventional insurance to captive Risk Finance
  • Trends in Operational Risk Insurance

Summary & Questions

In-House Training

Custom Training can help you achieve your corporate training goals while staying on budget and focusing the content on the needs of your group. Email your questions regarding corporate training to training@investmentoperations.net.

2024 Training Calendar

Training Catalogue

Course Instructor

Course Level

Intermediate

Certification

Certificate

Delivery

Via Zoom

Hours (EST)

12:30 pm - 4:30 pm​

Description

Date: TBD

Do you have limited resources to implement an operational risk framework? Are you trying to determine the vital elements of a successful operational risk program? Are you unsure where you should focus your efforts to ensure you meet your business and regulatory requirements? Do you want to learn the do’s and don’t’s of a successful and practical approach to operational risk management? Would you like to have proven generic templates to kick-start your program? The Operational Risk Management virtual course will cover the following:

  • Identify the central issues in operational risk management
  • Define the five essential elements of risk management
  • Distinguish between the three operational risk approaches
  • Evaluate the various models of risk – including the Swiss Cheese model and Normal Accident theory
  • Understand how financial institutions undertake Controlled Self Assessments (CSA’s) and where potential opportunities exist– Lowering Capital requirements under AMA vs. Capital Increase
  • Link various forms of Operations Risk, Basel II and Basel III
  • Compare and contrast VaR and RAROC for Operational Risk
  • Evaluate the impact of Insurance on hedging operational risk
    1. The role of AIG?
    2. Now, the role of the U.S. (& other) Gov’t’s
    3. The role of CCPs to mitigate settlement Risk

Who should attend

  • Operational Risk Managers and Analysts
  • All Operations Staff
  • All IT Staff
  • Risk Managers
  • Compliance Officers
  • Regulator
  • Auditors
  • Supervisors
  • ERM Managers

Prerequisite: None

Day 1

Risk Management Overview

  • Overview of Risk Management
  • Describe the 5 essential elements of Risk Management
  • Describe what “normally goes wrong”
  • Describe how Risk may be aggregated and mitigated

Intro to Operational Risk

  • Definitions of Operational Risk
  • Examples of significant Operational Risk losses
  • Swiss Cheese Model of OR
  • Normal Accident theory

Definition of Risk Classes

  • To illustrate the potential forms of Operational Risk losses
  • To describe the Basel Risk categories for loss data capture and how they are now relevant to all Financial Institutions – by LOB
  • Moving from Basel I & II to Basel III
  • Is there a Basel IV?

Day 2

Control Self Assessments

  • To consider the use of qualified assessments of Operational Risk
  • To review how Risk and quality can be measured in a subjective fashion
  • To illustrate the use of a self-assessment scorecard for the prediction of future Operational losses
  • To discuss how CSA’s would be identified for Asset Managers

Operational VaR

  • To describe how a Value at Risk number for Operational Risk can be calculated using a “loss” data approach
  • The Actuarial Model
  • Severity Distribution
  • Frequency Distribution

Insurance and Risk Financing

  • Risk Finance options
  • Conventional insurance
  • Moving from conventional insurance to captive Risk Finance
  • Trends in Operational Risk Insurance

Summary & Questions

In-House Training

Custom Training can help you achieve your corporate training goals while staying on budget and focusing the content on the needs of your group. Email your questions regarding corporate training to training@investmentoperations.net.

2024 Training Calendar

Training Catalogue

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