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Course Outlines

Risk Management

Risk Management Techniques and Basel II-III

Operational Risk and Basel II

Credit Courses

Writing Credit Applications - A Foundation Course

Advanced Credit Analysis and Risk Management

Analysing Banks

Loan Documentation

Loan Markets

Credit and Loan Markets

Consulting and On-Site Training Services

Basel II Operational Risk Framework Design and Build

Basel II Framework Implementation, Compliance and Training

Operational Risk Compliance Review and Gap Analysis

Organizational Structure Design



Operational Risk and Basel II

Introduction

It is only recently that Operational Risk has emerged both as a risk category and a discipline in its own right, a process which culminated in the separate capital charge for Operational Risk created by the new Basel II Accord.

Operational Risk, however, takes many different forms, which makes it difficult to measure, control or even identify.

Quantitative methods can help, but the Basel II Accord is very clear: “A bank must use scenario analysis of expert opinion… to evaluate its exposure to high-severity events. This approach draws on the knowledge of experienced business managers and risk management experts to derive reasoned assessments of plausible severe losses”.

Course description

Experience, therefore, is key and accordingly this two day course is run by a seasoned Operations expert with many years of experience to provide operations and support staff with the practical knowledge needed to understand the operational risks aspects and implications of their day to day activities.

Duration: 2 Days

Prerequisites: None

Who should attend?

Anyone wishing to gain a comprehensive understanding of operational risk management.

Outcomes:

By attending this course, delegates will understand:

  • The key concepts of Operational Risk Management such as Risk Events, Key Risk Indicators, Scenario Analysis, Risk Appetite etc.
  • The Basel II Approaches to Operational Risk Management
  • How to prioritise risks
  • The critical value to the enterprise of a robust Operational Risk framework and function
  • How to identify, prevent and manage operational risk


Your course presenter

Ingrid Pirlet is a Senior Banker with over 30 years of experience. She has held a number of senior positions including Head of International Operations, Chief Operating Officer, Head of Internal Audit, Group Compliance Officer and Operational Risk Manager at various banking institutions including Citibank and Barclays Bank plc.

She has been instrumental in setting up a new investment bank and a new compliance function and participated in integration, process re-engineering and change management initiatives.

For the past three years Ingrid has been performing senior assignments for Royal Bank of Scotland and Lloyds TSB in the UK.


The programme

Day 1 – Operational Risk Management

Session 1: Operational Risk overview

  • What is operational risk
  • The Basel II Operational Risk requirements
  • Operational risk charge for the Basel II Approaches
  • Boundary events
  • The components of an Operational Risk Framework


Case Study: Calculation of operational risk charge for the Basic Indicator Approach and the Standardised Approach


Session 2:  Development of an Operational Risk Framework

  • Policies and Procedures
  • Process Maps
  • Identification of key controls
  • Risk appetite and risk tolerance
  • Key Risk Indicators
  • Internal Loss Data
  • Scenario Analysis
  • Risk Register
  • Risk Events

Day 2 - Operational Risk Management

Session 1: The Building blocks of an Operational Risk Framework

  • Risk and Control identification
  • Development of a risk appetite and risk tolerance level
  • Risk and Control Self assessment
  • Severity and Likelihood scoring

Case Study: Risk and control identification

Case Study: Setting Risk appetite/risk tolerance

Case Study: Performing a Risk and control self assessment including scoring for severity and likelihood


Session 2:  The Building Blocks of an Operational Risk Framework

  • Creation of a Loss Database
  • Implementation of a Risk Register
  • Scenario Analysis
  • Development of Key Risk Indicators



Session 3: Embedding the Operational Risk Framework

  • Embedding the framework
  • Key Stakeholders
  • Monitoring and Reporting
  • Remediation
  • Business Reviews

Course Outlines

Quantitative Analysis

Credit Model Validation

Credit Scoring and Internal Ratings

LGD and EAD prediction

Counterparty Credit Risk: CVA and EPE

Course Outlines

Financial Markets

ACI Dealers Certificate Workshop

ACI Operations Certificate Workshop

Introduction to Financial Markets

Money Market Workshop

Foreign Exchange Workshop

Bonds Workshop

Financial Math Workshop

Introduction to Derivatives

Introduction to Banking

Fundamental Analysis

Treasury Management Workshop

Finance for Non Financial People

Ethics and Compliance

Balance Sheet, asset and Liability Management

Yield Curves