Operational Risk
Course Category: BANKING OPERATION COURSES
Course Fee: $4,500
ABOUT THE COURSE
Measuring and managing operational risk effectively is no easy task. Banks and other financial institutions are still facing enormous challenges trying to develop and implement a thorough operational risk management system. Bank defaults, insurance company failures and the big corporate disasters have been making the headlines for too long.
To keep you ahead of the latest market developments, COINMAC has created this practical course, which will explore the techniques to review, manage and account successfully for operational risk. Hands-on and case-study-based, this course will provide delegates with a whole set of tools to design efficient internal control mechanisms that help to prevent mismatching of trades and tracking errors. It will also illustrate how to apply data integration methods to centralise and clarify management information systems
COURSE OBJECTIVES
In just two days you will learn how to:
- Identify and define the boundaries of operational risk
- Understand specific risks in financial institutions and their impact on operational efficiency
- Assess risk and their potential impact
- Identify solutions and tackle line management, internal control and the effect of human error
- Create a workable operational risk framework
COURSE CONTENT
WHAT IS OPERATIONAL RISK?
Factors Influencing the Importance of Operational Risk
- Market consolidation and margin squeeze
- The complexity and sophistication of IT systems
- Regulatory and risk capital allocation pressures
- Hidden risks posed by complex financial products
- Improved communications and reliance upon efficient IT systems and STP
Identifying and Classifying Operational Risk Categories
- Fraud
- Systems and operations
Developing an Operational Risk Management Framework
- Objectives of operational risk management
- Responsibilities– developing a risk awareness culture– developing operational risk management procedures
- Operational risk management techniques– self assessment– benchmarking effectiveness of controls– allocating operational risk costs– awareness of the impact of and adherence to directives such as Basel, MiFID, AIFM etc
- Analysing incident reports and management Information to establish the creditability of the control process
- Creating a road map of the potential causes of the risk situation
- Creating a road map for the lessons learned from an event
- Creating a set of suggestions for the business to follow to resolve the risk situation
- Prepare a list of the commonalities and differences in the operational risk
- Communication
- Documentation Rogue Trading and Fraud
How did some of the key industry events happen and ANALYSING SPECIFIC RISKS what were the operational risk management failures? Technology
- Systems failure
- Programming errors MEASURING OPERATIONAL RISK
- Telecoms Being able to identify the risk and react to a risk event in a controlled and effective
People the risk event and the post event Generic Approaches
- Incompetence environment. • Do nothing
- Fraud • Insurance
- Key person Understanding the Risk Impact • Risk profiles mapping
- Performance • What is measured and how • MIS
- HR risks • What not to measure • Straight Through Processing
- The interpretation of information (STP)Process Utilising Risk Measurement • Building risk awareness culture• Execution error Techniques • Building consensus on risk• Record keeping errors • What type of practical allocation policies• Transaction and mis-matching of trades measurement techniques are • Building sense of responsibility for• Accounting risk there? risk reduction• Procedure failures • How do KRIs and KPIs work? • Overcoming resistance to change • Self assessment techniques and establishing clear, straight-Delegates will be required to through communication channelsidentify and manage operational Analysing a Major Risk • Corpo
Dates:
04 Feb - 08 Feb, 2019 | 08 Apr - 12 Apr, 2019 | 08 Jul - 12 Jul, 2019 | 07 Oct - 11 Oct, 2019
Venues:
USA | London | Dubai | South Africa | Ghana
