Key Elements & Principles for Managing Operational Risk
8.30am until 11.45am
Online Course (Live Session)
This 3-hour online course is brief dive into Operational Risk Management & Mitigation.
Aimed at exploring the Operational Risk management function and mitigation requirements as mandated by multiple regulators around the globe; a key objective of this course is to move the participants beyond the statutory operational risk compliance requirements to an understanding of managing operational risk as a value added proposition that can be instrumental in increasing the profitability of the organization while at the same time improving its structural strength.
Now the ongoing continuum of headline-grabbing operational risk incidents at banks, other financial institutions and even regulators continue to keep the issue of operational risk management at the top of agendas of CEO’s , CRO’s, Risk Managers and Internal & External Auditors alike.
The objectives of this training course is to provide all staff, irrespective of whether they work in the front-, middle- or back-office, with a basic foundation in the theory and practice of Operational Risk Management. This training is provided in a practical “hands-on” manner that allows participants to build on what they have learned.
Topics to be covered in the 3 hours
What is risk?
Operational Risk – The big picture
Dimension & drivers of risk management
Rating Agencies & risk
What is the value of Operational Risk Management?
How we categorize risks
What is covered under Basel?
Basel’s risk coverage
Operational risk categorization
The financial risk management environment
The operational risk management environment
The technical Implications of operational risk management
Managing Operational Risk
The governance process
Setting risk management objectives
Building a risk culture
Examples of a staff risk culture
Examples of management risk culture
Why are risk cultures important?
Key Elements in Managing Operational Risk
The core issues in managing operational risk
Determining the “Risk Appetite”
Risk impact / Event frequency
Impact vs. Probability
A generic case study
“Sound Practices for the Management and Supervision of Operational Risk”
Principles for the management of operational risk
Sound operational risk governance
Each of the 11 Principles are examined in terms of their content, meaning and implementation factors
Operational Risk –Practical Example
· Case Study: the National Australia Bank (NAB) , one of Australia’s largest banks, made the sudden an unexpected announcement that they had suffered a loss of AUD $360 million due to unauthorized foreign currency trading activities by four employees who incurred and deceptively concealed the losses.
About the Trainer
Richard Barr holds a B.S. in International Business Administration from San Jose State University in California. His professional experience spans over 30 years. The first 5 years were spent with Wells Fargo Bank. Another 5 were spent honing his global banking skills, when Richard was intimately involved with International Trade Finance, Real Time Gross Settlement and International Payments, Cross Border Banking.
Richard then repositioned into the private and high-tech sectors providing high- level consulting services, business analysis, project management and training to a wide range of banking clientele across the globe. He has spent extensive time servicing a diversity of corporates and 'financial institutional” clients, in China, Singapore, Hong Kong, Philippines, Korea, Malawi, Ghana, Nigeria, Kenya, South Africa, Poland, Sweden, Ireland, Netherlands, Greece, United Kingdom, Norway, Bermuda and across North America. Clients that Richard has trained & consulted to include with such notable firms as ANZ Bank, AIB Bank, Eurobank, ABSA Bank, CitiBank, Swedbank, IBM, Montran and Fundtech, as well as many others.
Richard has also filled the role of advisor to ministries of finance, central banks on risk management, corporate governance, cash management, payment systems and technical payment and risk issues. Furthermore, key staff members from the Bank of England, South African Reserve
Bank, Central Bank of Ireland, Bank Indonesia, European Central Bank, Norgesbank, Central Bank of Kenya, Central Bank of Tanzania, Bank of Portugal and others have attended training sessions presented by Richard.