Effectively managing operational risks is a critical aspect of business strategy for any financial services organisation. The effective management of operational risks can ensure that your organisation continues to serve its stakeholders while enhancing and retaining their trust.
This interactive online course will provide insights into the best current practice in operational risk management and actionable takeaways to implement within your own organisation. The course will be run over 2 separate days.
Learning outcomes:
Risk Quantification Techniques | Insurance & Banking
- Establish and define risk appetite and risk rating
- Establishing risk champions across the 3 lines of defence
- Risk Reporting
- Framework tools
Course Instructor:
This course is led by Joe Hannah.
Agenda:
Day One
- Introduction to Risk Management
- What it is
- Its purpose
- Risk categories
- Introduction to risk frameworks including COSO ERM, ISO 31000 & OCEG’s GRC Capability Model
- Risk Governance
- Why good risk governance is important
- The role of risk governance and key elements
- Examples risk governance structures
- Common pitfalls to avoid
- The Risk Management Cycle
- Context and common models
- Risk Identification – Techniques, classification, causes, capture
- Risk Assessment / Analysis -Methods of assessment, setting criteria, frequency, severity
- Risk Evaluation – Inherent v residual risk, to act or not to act
- Risk Treatment – control development, monitoring and assessment
- Risk Communication and Consultation
- Culture
- Practical session: Risk assessment, evaluation and treatment of OU812 Ltd. top risks
- The Risk Management Framework (RMF)
- Essential components of an RMF
- How to build and gain approval for your RMF
- RMF maturity assessment
- Links with Compliance, GIA and External Audi
- Case Study The power of risk management in the face of disaster
Day Two
- Risk Appetite and Risk Tolerance
- What are they and their role as part of an RMF
- Approaches to developing your risk appetites
- Developing risk appetite criteria
- Approval of the appetite statements
- Measuring and reporting against risk appetites
- Constructing an over-arching risk appetite framework and Policy
- The role of Risk Tolerance
- How Appetite and Tolerance work together
- How to keep it alive
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Exercise OU812 Ltd (Building an Ops Risk suite of Appetites)
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Practical Examples: What a risk appetite dashboard might look like in financial services
- Risk Controls and Treatment
- Identifying risks which require further risk treatment
- Identifying most effective controls to manage operational risks
- How to assess control effectiveness
- Who should test controls (3 lines of defence)?
- How to ensure control assessment adds value
- Reinforcing control throughout its lifecycle
- Capturing information about control failures and learning from such failures
- Example Control assurance programme
- Risk Monitoring
- Defining and implementing effective monitoring indicators e.g. key risk indicators, key control indicators
- The importance of loss data collection
- Capturing and analysis loss data
- Capturing and managing issues related to operational risks and remediation
- actions to address such issues
- Exercise: OU812 Ltd – The need to learn from loss
- Risk Reporting
- Critical risk reporting for your risk committee
- Ownership of risk reporting
- The role of reporting
- Standard versus ad-hoc
- Getting the balance right
- Practical examples of risk reporting
- Best Practices in Risk Management
- The structure and composition of the Risk Function
- The role of the 1st line and how it works with the Risk team.
- Capturing and analysis of loss data related to operational risks
- Capturing and managing issues related to operational risks and remediation
- actions to address such issues
- Regulation and Risk Management
- How the regulatory landscape is changing
- How to incorporate regulatory risk into your RMF
- Conduct Risk
- Conduct Risk Frameworks – Putting the customer first
- Practical examples of Conduct Risk dashboards/indicators
- Survey Results
Who should attend:
This workshop has been developed for the following organisations:
- Banking, Insurance underwriters, Insurance brokers, Asset Management and other FCA/PRA regulated institutions.
This workshop has been developed for the following individuals:
- Senior Management
- Financial Officers
- Risk Officers and Analysts
- Internal Auditors
- Operational Risk & Compliance Consultants, Advisers and Managers
- Risk or Control Champions and owners
- Any other staff with roles and responsibilities that incorporate operational risk management in the 1st or 2nd lines of defence.
Benefits of attending:
- Learn about the most effective strategies for managing operational risk
- Understand specific risks in financial institutions and their impact on operational efficiency
- Explore operational risk in the context of regulatory change
- Assess the risk culture and appetite and understand how they are critical in supporting the formation of strategy and in supporting decision making.
- Place operational risk within broader enterprise risk management and corporate governance structures
- Gain the tools to implement operational risk management in practice
- Explore case studies and practical examples including current best practices and standards.
