Available as an in-house course                                              

                                                                                                                   
Course Overview

This is a course for people with some years of banking experience at HQ or branch level who wants to have a complete overview of what operational risk is all about. Based upon the information received during the course participants will gain a good understanding of what operational risk is about and what they can do about it. The programme comprises a theoretical approach combined with some practical case studies.

Course Content

Introduction – Operational Risk vs Other Types of Risk
Different definitions of risk
Situations that involve risk
Operational risk
    • Basel II definition
    • Contrast with strategic risk
    • History
    • Effect of operational risk on banks
Market risk
    • Key risk factors
    • Asset allocation / diversification aspects
    • Betas
    • Value at risk methodology
Interest rate risk
    • Basis risk, yield curve risk, repricing risk and option risk
Currency risk
    • Markets and market participants
    • Factors affecting currency trading
    • Financial instruments
Credit risk

Rationale for Operational Risk and Examples
Globalisation and deregulation
Financial technology aspects
Examples of large losses

Basel II Event Categories
Internal Fraud
    • Misappropriation of assets
    • Tax evasion
    • Intentional mismarking of positions
    • Bribery
External Fraud
    • Theft of information
    • Hacking damage
    • Third-party theft and forgery
Employment Practices and Workplace Safety
    • Discrimination
    • Workers compensation
    • Employee health and safety
Clients, Products, Business Practice
    • Market manipulation
    • Antitrust
    • Improper trade
    • Products defects
    • Fiduciary breaches
    • Account churning
Damage to Physical Assets
    • Natural disasters
    • Terrorism
    • Vandalism
Business Disruption & Systems Failures
    • Utility disruption
    • Software failures
    • Hardware failures

A Better Qualification of Operational Risk
Internal causes
External causes
People, Processes, Systems

Aspects of Operational Risk and Processes
Accounting error
Contract risk
Misselling
Product complexity
Reporting error
Settlement error
Transaction error
Valuation error

Aspects of Operational Risk and Systems
Data quality
Programming errors
Security breach
Strategic risk
System capacity
System delivery
System suitability

Aspects of Operational Risk and People
Employee collusion / fraud
Employee error
Employee misdeed
Employer liability
Health and safety
Concrete examples of all forms
Noting misconceptions about operational risk management

Sound Practices for Management
Board of directors
Internal audit
Senior management
Risk identification and assessment
Risk monitoring
Risk mitigation & control
Business continuity

Methods of Operational Risk Management.
Basel II
Various supervisory bodies

Methods of Capital Calculation for Operational Risk
Basis indicator approach
Standardised approach
Advanced measurement approach,

Key Risk Indicators, Sources and Risk Control Self-Assessment
Monotoring tools
Early warning systems
Scorecards
Management Reports
Audit reports
Inspection reports
Risk control self-assessment

Central Bank Rules & Regulations

PDF of course outline - Please note that tailoring is possible


IF YOU HAVE ANY QUESTIONS ABOUT THIS SEMINAR PLEASE WRITE TO US AT post@redcliffetraining.co.uk
 
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