COURSE OVERVIEW
The aim of this programme is to provide participants with a thorough understanding of how to measure, manage and control operational risk
WHAT WILL YOU LEARN?
By the end of this course, participants will be able to:
- Understand Basel II and the key elements of modern operational.
- Propose a governance structure that will support appropriate.
- Implement an internal marketing strategy to ensure effective.
- Roll out a training program to facilitate the required culture change
- Implement effective loss data collection processes and procedures.
- Produce meaningful and actionable reporting for management.
- Design KRIs that have value
- Design an appropriate RCSA / Scenario Analysis approach
- Produce operational risk policy documents
- Prepare an operational risk update for the Board
- Understand how to integrate operational risk in the overall economic capital / risk-adjusted performance concept
- Analyse capital savings potential / ensure capital adequacy for operational risk
- Identify gaps in the institution
WHO SHOULD ATTEND?
The course targets Risk Managers, i.e. Operational Risk Managers, in Financial Institutions and auditors.
DAY 1
Session 1 Introduction: Examples of high-magnitude Operational Losses
Basel II / III
- The Basel Accords – Evolution of OpRisk
- Role of Operational Risk within Basel II / III
- Key Elements of Basel II / III regarding OpRisk
Session 2 – Operational Risk-Framework / Governance
- BIS Governance Principles October 2014
- Definition of Operational Risk
- Basel III Progress / BIS Principles for the Sound Management of Operational Risk / October 2014
- Roles & Responsibilities
- Risk Controlling
- Risk Management
- Audit
- Others
- Basic Data Structures
- Organisational vs. Process View
- Loss Bearer, Risk Taker, Risk Owner
- Committees
- Key Policies in OpRisk
- Basel II-Approaches
- Basel III Progress / Operational Risk – Revisions to the Simpler Approaches
- Rolling out Operational Risk in the Organisation / Training to facilitate successful Implementation of Operational Risk
Session 3 – Loss Data
- Internal Loss Data
- Date of Loss
- Loss Amount Components
- Loss Capture Process
- Data Quality and Completeness
- External Loss Data
- Appropriate External Data
- Learning From External Data
- External Data Process
- ORX consortium
- Reporting Loss Data
Risk and Control Self-Assessment / Scenario Analysis
- Qualitative and Quantitative Scenario Data
- RCSA / Self Assessment-Process
- Reporting RCSA / Self Assessment
Session 4 – Key Risk Indicators
- Finding meaningful and actionable KRI
- KRI-Process
- Reporting KRI
Session 5 – Other OpRisk Issues (part 1)
- Case Studies & Attendees’ Examples
- Business Continuity Planning
- Fraud / Credit Cards
- IT Risk / Cyber Security
- Risk Mitigation, e.g. Outsourcing & Insurance
DAY 2
Session 6 – Advanced Operational Risk Quantification: Measurement of OpRisk (AMA)
- Basel III Progress / Updated BIS Guidelines on the Advanced Measurement Approach
- The Problem of Data Scarcity
- Availability of Data vs. Granularity
- Combination of Methods
- Quantitative Modelling
- Qualitative Adjustments
- Loss Data Selection & Preparation
- Operational Risk Cells
- Scaling of External Data
- Fitting of Loss-Distributions
- Choice of Distributions
- Goodness-of-Fit Estimators
- Scenario-Distributionskurz
- Choice of Distributions
- Calculation of Distribution Parameters
- Basic Monte-Carlo-Simulation
- Including Correlations & Dependencies
- Interpretation of Results (e.g. Expected vs. Unexpected Loss)
Session 7 – Controlling of Operational Risk & Integration into the overall Risk & Capital Management
- Qualitative Adjustments
- Adjustment Amount(s)
- Adjustment Structure
- Risk & Capital Allocation and Risk Contributions
- Target Structure
- Risk-Sensitive Breakdown of OpRisk
- OpRisk-Limits
- Value-at-Risk and Economic Capital
- Risk-adjusted Performance
- Risk Bearing Capacity
- Risk Appetite
- Reporting Operational Risk Quantification
Session 8 – Operational Risk Reporting
- BIS Principles for Effective Data Aggregation and Risk Reporting / January 2013
- Report Recipients
- Report Frequency
- Actionable Management Reports
Session 9 – Other OpRisk Issues (part 2, resumed from day 1)
- Case Studies & Attendees’ Examples
- Business Continuity Planning
- Fraud / Credit Cards
- IT Risk / Cyber Security
- Risk Mitigation, e.g. Outsourcing & Insurance
End of Programme
For a detailed profile of the course director, please fill in a brochure request.
The venue of the training is always in a centrally located 4-5 star hotel. The venue is confirmed 2 weeks before the programme once registration is closed and we know the exact number of delegates attending. We have exclusive rates with the hotel, if you require accommodation during the programme.
