OPERATIONAL RISK TRAINING COURSE 4 December 2015 Operational Risk is defined broadly and as a causal risk - the risk of loss due to failures in people, processes, systems or external events. It underlies many other risks, in particular regulatory and reputation risks, which are fundamental to the business model for financial institutions. It has also become a very costly risk for firms which have not managed it well. It is also a discipline which continues to develop rapidly in sophistication and relevance to business decision making. Who Should Attend? This examination is appropriate for staff who have been working in the financial services industry for a period up to 18 months. In addition, the regulatory authorisation and supervision regime requires the following Job Functions to pass this qualification of the Risk in Financial Services. Trading Manager Operations Manager Internal Controller Financial Analyst Compliance Officer Risk Officer Key Learning Objectives Gain an appreciation for the role of risk management in the post crisis financial services industry Gain an appreciation for the role of corporate governance in an organization and of the participants, elements and relationships within risk management governance Gain an understanding of the different roles in risk governance and the place of reporting and the use of various elements of a risk framework Gain an understanding of the theory and process of risk management and the expected results from a successful risk management process List and discuss a set of developments in the governance of risk management, with an introduction to the area of risk culture Describe the elements of a risk management framework and choose the elements to implement in their own workplace Manage an operational risk assessment program and apply it in their workplace Understand how to capture, report and investigate operational risk events, how to produce meaningful Risk MI including Key Risk Indicator (KRI) data and trend analysis, and how to implement operational risk appetite Be able to recognize how operational risk management can assist the overall business and add value Syllabus Element 1 - Risk Basics 1.1 Risk in the Financial Services Industry 1.2 Enterprise Risk Management Element 2 - Other Major Risks 2.1 The Nature of Credit Risk 2.2 Measuring Credit Risk 2.3 Credit Risk Management and Reporting 2.4 The Nature of Market Risk 2.5 Measuring Market Risk 2.6 Value-at-Risk (VaR) 2.7 Market Risk Management and Reporting 2.8 Market Risk Regulatory Requirements 2.9 The Nature of Liquidity Risk 2.10 Measuring Liquidity Risk 2.11 Liquidity Risk Management and Reporting 2.12 Liquidity Risk Regulatory Requirements Element 3 - The Natute of Operational Risk 3.1 Definition of Operational Risk and Operational Risk Categories 3.2 Culture 3.3 The Risk Management Process 3.4 The Policy for Managing Operational Risk 3.5 Risk Identification / Classification 3.6 Risk Assessment and Measurement 3.7 Risk Mitigation 3.8 Risk Monitoring, Reporting and Governance Element 4 - The Causes, Consequence and Impact of Operational Risk Events 4.1 Operational Risk – The Causes 4.2 Operational Risk – The Consequences 4.3 Operational Risk – The Impact 4.4 Near Miss Identification and Reporting Element 5 - Operational Risks Arising in the Trade Cycle 5.1 Set-up 5.2 Execution 5.3 Pre-settlement phase 5.4 Settlement phase 5.5 Post-settlement phase Element 6 - The Support and Control Functions 6.1 The Independent Risk Function 6.2 The Middle/Back Office Functions 6.3 The Compliance Function 6.4 The Financial Reporting Function 6.5 The HR Function 6.6 The Internal Audit Function 6.7 The IT Function 6.8 The Legal Function 6.9 The Product Management and Marketing Function 6.10 The Project Management and Change Management Function Element 7 - Operational Risk in the Regulatory Environment 7.1 Achieving Common Standards and Protection 7.2 Regulatory Capital Requirements Delivery Methods Public Course If you only have a few staff who require a particular training course then why not send them on one of our public courses. Our training centres in Beirut (Lebanon), Amman (Jordan), Kuwait (Kuwait), and Doha (Qatar) is the perfect locations. We limit the number of participants to 15 to ensure an interactive training environment. There’s always a chance to put your questions to a genuine expert, as well as to share experiences with other delegates. Bring In-House If you have a number of people who require training, you might find it more economical to have the training at your offices. Our trainers are armed with all the equipment and materials necessary. All you need to do is supply the room. In addition in-house courses can be tailored to meet the precise needs of your business. Tis could mean tailoring a course for a business unit; combining elements of different elements of different courses to match your exact specifications; or producing a course from scratch. Enquiries Please contact us at firstname.lastname@example.org and we'll get in touch to discuss your requirements in detail.