Operational Risk Management Course

Course Description

This comprehensive course on Operational Risk Management is designed to provide a deep understanding of the hidden risks embedded in all business activities. The course explores the critical importance of operational risk management in the wake of significant events like the Barings Bank collapse, the 2007-09 global financial crisis, the COVID-19 pandemic, and recent ransomware attacks. Students will learn how inadequacies in people, processes, and technology can lead to unexpected losses and how to develop effective risk mitigation strategies.

The course delves into the rapidly evolving landscape of financial services, exploring how technological advancements, data availability, and new business models are transforming the industry. It emphasizes the importance of building operational resilience in this dynamic environment. Through a combination of theoretical knowledge and practical applications, students will gain insights into global best practices for operational risk management and learn how to implement an integrated approach to enhance operational efficiency.

What Students Will Learn

  • A comprehensive understanding of Operational Risk, its causes, and its relationship with overall operational efficiency.
  • The guiding principles established by the Basel Committee on Banking Supervision (BCBS) for financial services.
  • Continuous enhancements in operational risk management tools based on global best practices.
  • Techniques for building resilience and adapting to changing environments.
  • The interconnection between risk, return, and capital in financial institutions.
  • Methods for identifying, assessing, and mitigating operational risks.
  • Approaches to capital computation for operational risk.
  • The importance of Business Continuity Planning (BCP) and operational resilience.

Who This Course Is For

  • Risk management professionals in the financial services industry
  • Bank executives and managers
  • Compliance officers and internal auditors
  • Financial analysts and consultants
  • Business continuity planners
  • Anyone looking to enhance their understanding of operational risk management

Real-World Applications

  • Implement robust operational risk management frameworks in organizations
  • Identify and mitigate potential operational risks before they materialize
  • Enhance operational efficiency and resilience in business processes
  • Contribute to strategic decision-making by providing insights on risk factors
  • Comply with regulatory requirements related to operational risk management
  • Develop and implement effective business continuity plans
  • Conduct meaningful risk assessments and scenario analyses
  • Improve overall organizational performance through better risk management practices

Course Syllabus

Module I: Introduction to Risk and Operational Risk
Module II: Principles for Sound Management of Operational Risk
Module III: Loss Data Collection and Analysis
Module IV: Business Environment & Internal Control Factors (BEICF) - Risk & Control Self Assessment
Module V: Business Environment & Internal Control Factors (BEICF) - Key Indicators
Module VI: Scenario Analysis
Module VII: Capital Computation
Module VIII: Business Continuity Planning (BCP) and Operational Resilience
Module IX: Final Evaluation