About
This two day hands on practical course provides a comprehensive overview of operational risk management (ORM) as it applies to financial institutions. This course provides an in-depth view of the latest thinking in ORM and includes the latest guidance, standards and regulations to provide you with a working knowledge of how to achieve best practice ORM across your institution. It addresses all aspects of an integrated ORM process including risk and control assessments, control assessments, key risk indicators, incident management, risk treatments, risk capital calculation and allocation, and reporting.
Key Learning Outcomes
• An in-depth understanding of all aspects of Operational Risk Management (ORM) covering identification, assessment and quantification, evaluation, treatment, monitoring and reporting.
• A working knowledge and understanding of the regulatory environment and external guidance including the APS 114 and APS 115, AS/NZS 4360, COSO and ASX Principle 7.
• The practical skills to make ORM work in your institution.
• A practical understanding of the various techniques required for comprehensive ORM including risk and control assessment, key risk indicators, incident reporting and management, improvement tracking, and capital quantification and allocation including the ICAAP process.
• A comprehensive appreciation of the requirements of ORM software and how to ensure it supports rather than hinders your risk management process.
• Blueprints for an effective ORM reporting framework and proformas for each level of your institution.
• An awareness of the pitfalls to successful ORM and how to overcome them.
Who Should Attend?
• Group Operational Risk Managers
• Risk Officers
• Risk Managers
• Financial Controllers
• Internal auditors
• External Auditors
• Risk Advisers and Consultants
• Regulators
• Insurance Specialists
• Fraud Managers
• IT Security and Operations staff
Training Methodology
This intensive 2-day master class will combine tutorial sessions and case studies with interactive learning exercises. All attendees will be provided with a workbook and a certificate of completion.
Outline
Current status of Operational Risk Management
• Drivers of current ORM practice
• Objectives and milestones of ORM success
• Challenges for the CEO and the Board
Understanding Operational Risk
• Key definitions
• Nature and characteristics of risk
• Risk categories
• Understanding risk causes, events, impacts, and controls
• A risk categorization framework
A framework for Managing Risk
• The framework
• The risk management process: AS/NZS 4360, COSO, ISO3100
Case Study 1: The Rogue Trader - Barings Bank
The Regulatory Driver
• The Basel II requirements (and Basel III)
• Meeting RBNZ’s and APRA expectations
Setting up the structure
• Organisation structure and 3 levels of defense
• Responsibilities for ORM
• Policies and procedures
• Setting the risk appetite
An ORM Methodology
• Risk and control self-assessment (RCSA)
• Defining key controls
• Key risk indicators
• Incident Management
• Risk treatments and remediation
• Risk quantification and capital allocation
Risk and Control Self-Assessment (RCSA)
• Aligning RCSA with business context, strategy and performance indicators
• Carrying out an RCSA
• Avoiding poor quality assessments
• Case study
Control Monitoring and Testing
• What is a control?
• Assessing the effectiveness of controls?
• What does a test script look like?
Key Risk Indicators
• What is a KRI/KCI and what are their purpose?
• Identifying, collecting, scoring, weighting, aggregating and reporting indicators
• Basel II and Regulator requirements
• KRI Class activity
Case Study2: “The bargain of the year”- ING
Incident Recording and Management
• The identification and management process
• Incident reporting and use
• Regulatory requirements
Risk Treatment Options
• What are the options?
• How do you assess the options?
Risk Capital Calculation and Allocation
• Regulatory requirements for capital
• Loss distribution approach and calculation
• Allocating economic capital in the business
Integration of the parts
• Pulling the risk model together
• Benefits of integrated programme
Reporting
• Report format, content and process
• Towards a true dashboard report
The key to achieving ORM success
• Identifying and overcoming hurdles
• The importance of risk culture
• The keys to success
Facilitator
Paul Barton
Paul is principal and principal trainer of RiskHub Limited. Paul has experience in all facets of risk management with particular specialisation in Operational Risk Management. Prior to setting up RiskHub, Paul has spent nearly 16 years working in a risk management capacity both here and in Australia. Paul has extensive financial services experience where he headed up the risk and compliance functions across superannuation, wrap platforms, and insurance for BT Financial Group in Sydney. Most recently Paul has led the operational risk function at ANZ Bank in Wellington.
Paul Barton is also facilitating:
In-house Training
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