In this course, we will explain the components of modern operational risk management. Starting with the basics of risk within banking and, tracking the recent developments, we will cover the components currently found in a modern global or regional bank: risk identification, measurement, reporting and especially handling. We will draw on best practices from relevant types of financial institutions and look at the requirements from the governance and regulatory aspects.

There are no formal prerequisites.

At the end of the course delegates will be able to:

• Fully understand the need for the creation of operational risk frameworks and their impact on the strategy and processes
• Develop the understanding of operational risk management necessary to manage, comment and understand  an institution’s own risk management plans and reports
• Obtain a practical and realistic approach to the implementing of an effective, best-practice operational risk management programme and the creation of the necessary risk culture.
• Understand practical insights of what it takes for a bank to set up a sensible and compliant framework for managing operational risks.

• The nature of operational risk
• Operational risk structures
• Why manage operational risk
• Internal and external loss data
• Measurement and risk-derived capital
• Handling identified operational risks
• Operational risk governance
• Risk and controls self-assessment
• Stress-testing and scenario analysis
• Implementing a framework