Operational Risk Management – A Practical Approach

March 12-13, 2018  New York City  Seminar Location

June 6-7, 2018  New York City  Seminar Location

Many classes sell-out; we suggest registering at least two weeks in advance to ensure your seat.

Hours9:00 am – 5:00 pm; Registration/Breakfast: 8:30 am; Dress Code: Business Casual

CPE Credits: 14
Level:
Beginner/Intermediate

Prerequisites: None
Method: Group Live

Do you have limited resources to implement an operational risk framework? Are you trying to determine the vital elements of a successful operational risk program? Are you unsure where you should focus your efforts to ensure you meet your business and regulatory requirements? Do you want to learn the do’s and don’ts of a successful and practical approach to operational risk management? Would you like to have proven generic templates to kick start your program?

Who should take this seminar

  • Operational Risk Managers and Analysts
  • All Operations Staff
  • All IT Staff
  • Risk Managers
  • Compliance Officers
  • Regulators
  • Auditors
  • Supervisors
  • ERM Managers

By the end of the course, the participants will be able to:

  • Understand the central issues in operational risk management
  • Understand the five essential elements of risk management
  • Distinguish between the three operational risk approaches
  • Understand the various models of risk – including the Swiss Cheese model and Normal Accident theory
  • Understand how financial institutions undertake Controlled Self Assessments (CSA’s) and where potential opportunities exist–Lowering Capital requirements under AMA vs. Capital Increase
  • Link various forms of Operations Risk, Basel II and Basel III
  • Understand VaR and RAROC for Operational Risk
  • Understand the impact of Insurance on hedging operational risk
    • The role of AIG?
    • Now, the role of the U.S. (& other) Gov’t’s
    • The role of CCP’s to mitigate settlement Risk

Session 1 – Risk Management Overview

  • Overview of Risk Management
  • Describe the 5 essential elements of Risk Management
  • Describe what “normally goes wrong”
  • Describe how Risk may be aggregated and mitigated

Session 2 – Intro to Operational Risk

  • Definitions of Operational Risk
  • Examples of significant Operational Risk losses
  • Swiss Cheese Model of OR
  • Normal Accident theory

Session 3 – Definition of Risk Classes

  • To illustrate the potential forms of Operational Risk losses
  • To describe the Basel Risk categories for loss data capture and how they are now relevant to all Financial Institutions – by LOB
    • Moving from Basel & II to Basel III

Session 4 – Control Self Assessments

  • To consider the use of qualified assessments of Operational Risk
  • To review how Risk and quality can be measured in a subjective fashion
  • To illustrate the use of a self assessment scorecard for prediction of future Operational losses
  • To discuss how CSA’s would be identified for Asset Managers

Session 5 – Operational VaR

  • To describe how a Value at Risk number for Operational Risk can be calculated using a “loss” data approach
    • The Actuarial Model
    • Severity Distribution
    • Frequency Distribution

Session 6 – Insurance and Risk Financing

  • Risk Finance options
  • Conventional insurance
  • Moving from conventional insurance to captive Risk Finance
  • Trends in Operational Risk Insurance

Session 7 – Final Review and Questions

US $1695.00

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