Operational Risk Management Workshop
– Understanding and overcoming practical challenges
Operational risk is inherent in all banking products, activities, processes and systems. Ironically, Operational Risk has been considered less-important when compared to other key risk elements such as Credit Risk and Market Risk. The fundamental aspect of operational risk is that if a such a risk occurs (example: a communication line disruption, a cyber threat attack), this will most likely cause other risks to materialise, such as a variety of financial risks, reputational risk or counterparty risk, etc.
Operational Risk has been growing in importance within financial services providers, be them top tier commercial banks, brokerage firms, investment management firms or insurance providers.
Due to rapid advancements in technology, increased globalization, evolving regulatory and business environments, the need for strong Operational Risk management practices is now greater than ever. With better operational risk management, organisations can effectively pursue their objectives, minimise their losses and realise higher returns. Sound operational risk management is a reflection of the effectiveness of the Board of Directors and senior management in administering its portfolio of products, activities, processes, and systems.
This training program will provide a sound theoretical foundation from which to explore cutting-edge Operational Risk practices under a changing regulatory environment, including latest updates to the Basel Accord. The program focus is to build an understanding of the importance of operational risk management within the Banking and Financial industry and develop solutions.
Participants will have the chance to put theory into practice through case studies simulating real-life scenarios. They will leave this course equipped with the tools necessary to identify, measure and manage operational risk within their organization covering the following elements:
- Understand various categories of operational risk
- Gain insight into operational risk management policies, procedures and controls
- Discuss salient features of Basle II/III relating to operational risk
- Sources of operational risk and how these arise in financial institutions business activities
- Factors Influencing the Operational Risk
- Identify and define the boundaries of operational risk
- Classifying the Operational Risk Categories
- Analysing Specific Risks – Technology, People, Process
- Assess risks, embedded controls and their potential residual impact
- Main techniques for the measurement and quantification of operational risk
- Basel Committee approaches for calculation of regulatory capital for operational risk
- Governance structures and cultural aspects necessary for an organization to successfully manage operational risk
- Create value-adding Operational Risk management reports
- Developing workable operational risk management framework
Topics mentioned above will be supported by exercises / case studies and sharing of practical experiences.
Officers and Managers working in the following areas:
- Operational Risk Management
- Banking Operations including Back and Middle Office
- Risk Management
- Internal Control Function
- Internal Audit
- Compliance and Legal
Trainers: CA Anoop Sapra, CPA (US), CS (India) Prof. Satish Shinde, Ph.D.
Duration: 3 days