Kurum-İçi Eğitim Programları
B12. Operational Risk
The themes of this product are:
Proposes the development of Operational Risk Management in financial institutions as a
distinct function with its own process, structure,tools and measures
Operational Risk Management
The themes of this product are:
Proposes the development of Operational Risk Management in financial institutions as a
distinct function with its own process, structure,tools and measures
Overview
Changes in markets, techniques, technologies,
and products have altered the landscape of
Operations and fueled the explosive
development of Operational Risk management.
The regulators of financial and public
companies are demanding a far greater level
of disclosure and awareness by directors about
the risks they manage and the effectiveness
of the controls they have in place to reduce or
mitigate these risks. There is also a greater
realization that a major source of earnings
volatility can be attributed to the way a firm
operates and not “financial risk”. All these
changes have triggered the need for an efficient
Operational Risk Management system in
organizations.
Course Level & Number of Courses
Intermediate Level
Library of 21 Courses
Instructional Method
Dynamic, Interactive e-learning
Recommended Background
Familiarity with basic financial concepts
Operational Risk Management
Library of 21 Courses
Time taken to complete each Course: Two - Three hours
1. Introduction to Operational Risk
Objectives
Defining operational risk
Significance of operational risk
Operational risk management programs
Addressing operational risk
Measuring and modeling operational risk
2. Basic Concepts
Objectives
Loss events
Risk Factors, loss types and event/ factor controllability
Dependencies between Risk Factors and Events
Attribution of Loss
3. Regulatory Treatment of Operational Risk under Basel-II
Objectives
Introduction, Definitions and data issues
Measurement Methodologies
Role of Pillars 2 and 3
Sound Practices
4. Operational Risk in Various Banking Sectors
Objectives
Introduction and Spectrum of Risks
Accounting policies, costing and pricing models
Private banking sector
Operational Risk Management
Library of 21 Courses
5. Operational Risk in insurance
Objectives
Introduction
Risks exclusive to insurance and Regulatory Issues
Alternative Risk Transfer and Finite Risk Captives
Captives
6. Developing objectives and identifying risks
Objectives
Risk Management Agenda
Risk Management Targets
Risk Management Organization and Policies
Benchmarking Internal Processes and Resources
Identifying Process and Resource Risks
Identifying Risk Factors
Identifying and Categorizing Loss Events
7. Estimating potential losses – Data
Objectives
Challenges to Operational Risk analysis
General measurement techniques
Historical analysis
Subjective risk assessment
Operational Risk Management
Library of 21 Courses
8. Estimating potential losses – Loss distributions
Objectives
Overview of probability distributions
Building a distribution
Probability distributions
Estimating risk factors
Choosing an event distribution
Operational Risk database
9. Analyzing risks
Objectives
Aggregating risks
Monte Carlo loss simulation
Risk management alternatives
Analyzing loss events
Analyzing risky processes and resources
Analyzing risk factors
10. Loss prediction and prevention
Objectives
Loss prediction
Loss prevention
Process reengineering and work restructuring
Product redesign and automation
Human factors engineering
ERP and reliability maintenance
Operational Risk Management
Library of 21 Courses
11. Loss control
Objectives
Introduction
Diagnostic controls and Inventory management
Redundant systems and boundary systems
Computer security and physical security management
Internal and external audit
12. Loss reduction and risk avoidance
Objectives
Legal risk reduction and loss isolation
Contingency Planning
Crisis Management
Risk avoidance
Quality management
Human resources management
Organizational design, Culture and relationship management
13. Risk financing
Objectives
Introduction
Financial restructuring
Asset-Liability Management
Corporate diversification
Insurance
Self-Insurance
Hedging using derivatives
Contractual risk transfer
Operational Risk Management
Library of 21 Courses
14. Measurement framework
Objectives
ORM cycle
Framework criteria and assumptions
Current framework approaches
Measurement process for ORM
Delta and EVT methodologies
15. ORM in practice
Objectives
Learning and response loops
Guidelines for effective reporting
Event reports and Operational profiles
Risk reports
Evaluating and updating the risk model
Implementing bank-wide ORM
16. Enterprise-wide Risk Management (ERM)
Objectives
Role of technology
Enterprise-wide risk information systems
Challenges to ERM
Project Management for an ERM system
Operational Risk Management
Library of 21 Courses
17. Basic and causal models
Objectives
Operational Risk Management (ORM) model
Top-down risk models
Bottom-up risk models
Selecting a risk model
Causal models
18. Legal risk and taxation rules
Objectives
Introduction
Contract enforcement
Board of directors and shareholder activism
Management responsibility for legal risk
Transparency and collateral
Shifting ground in international taxation
19. E-banking
Objectives
Introduction
Operational risks associated with Electronic Banking
Security risk
Systems design, implementation, and maintenance flaws
Customer misuse of products and services
Operational Risk Management
Library of 21 Courses
20. Systems and software
Objectives
Introduction
Framework/Components of an operational risk system
Operational risk software
AMELIA
MICROBANK
Relex software
ALGORITHMICS
21. Case study Barings
Objectives
Overview
How the massive losses were incurred
Lessons to be drawn from the incident
JOB AIDS
Measurement Tools
Disclosures
Global Best Practices
Policy Templates
Calculators in Operational Risk Management
1. Probability Distributions
2. Capital Charge Under the Basic Indicator Approach
3. Capital Charge Under the Standardized Approach
4. Internal Measurement Approach
