Advanced Operational Risk Management

BACKGROUND
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    • From risk environment to risk culture, the course covers in breadth and depth the most topical elements
    • of operational risk management and its challenges for the financial services industry. 
    • Taught by a world leading expert in the field and highly regarded guest speaker, the course is a must-have
    • for all the operational risk practitioners wishing to benchmark their practice and discuss best practices. It is
    • also a fantastic opportunity for newcomers to gain a comprehensive overview what modern operational risk
    • managers need to know. 
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    • Delegates will leave the course equipped with a new network of practitioners, a wealth of content, additional references and readings, and an open line for further questions with the trainer, Ariane Chapelle.
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    • KEY OBJECTIVES AND LEARNING OUTCOMES:
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    • After the course, participants will acquire good knowledge about:
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    • Identification of emerging risks
    • Risk assessments and controls
    • Risk networks besides risk registers
    • Practical risk management implementation: the invisible framework
    • Selecting and designing preventive KRIs
    • Understand and address human errors
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    • WHO SHOULD ATTEND
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    • Risk Managers
    • Operational Risk Managers
    • Operations Managers
    • Internal Auditors
    • HR officers
    • Compliance officers
    • Regulators
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    • COURSE OUTLINE
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    • DAY ONE: OPERATIONAL RISK FRAMEWORK, RISK ASSESSMENT AND KRI’s
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    • 9:00 – 10:30 
    • Session1: Operational Risk Framework and Governance
    • Operational Risk Scope 
    • Top risks and emerging risks
    • Governance of Operational Risk: roles and responsibilities
    • Recent trends in Operational Risk Management
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    • 10:45 – 12:30 
    • Session 2: Risk Identification Risk Assessment
    • Tools and techniques for risk identification
    • Risk taxonomy and risk register
    • Risk connectivity: network of risks
    • Definition and rules for risk and control assessment
    • Impact / probability matrix and heatmap: format and meaning
    • Modern RCSA
    • Interactive session: Risk assessment: challenges and practice
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    • 12:30 - 13:30 - Lunch 
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    • 13:30 – 15:00 
    • Session 3: Designing and Selecting Preventive Key Risk Indicators
    • Essential features of preventive Key Risks Indicators (KRIs)
    • Six steps to define preventive KRIs
    • KPIs and KRIs
    • Classifying KRIs: Environmental, Stress, Causal and Failure
    • KRI Design: Frequency - Trigger levels - Escalation criteria – Ownership - Data accuracy
    • Interactive session: Q&A on key risk indicators and best practice
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    • 15:15 - 17:00 
    • Session 4: Root causes analysis and Control Design
    • Slips and mistakes: Typology and causes of human errors 
    • Control design and control testing
    • Bow-tie tool for root cause analysis: identifying patternsof failures 
    • Prevention through Design
    • Interactive session: experimenting the bow-tie to some of your incident 
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    • DAY TWO: RISK APPETITE, SCENARIOS AND RISK CULTURE
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    • 9:00 – 10:30 
    • Session 1: Risk Appetite 
    • Industry guidance on Risk Appetite
    • Risk Appetite and consistent risk management framework
    • Risk Appetite Statements and Structure: Examples
    • Top-down and bottom-up risk appetite
    • Risk appetite in practice: defining the limits
    • Audience interaction: questions and debates on risk appetite challenges
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    • 10:45 - 12:30
    • Session 2: Cyber Security Risk, Scenarios and Resilience 
    • Brainstorming and workshop techniques to identify scenarios
    • Key risks and controls in information security
    • Scenario assessment: application to cyber risks
    • Resilience and crisis management
    • Defining and managing reputation
    • Class Exercise: Applied scenario structuring 
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    • 12:30 - 13:30 Lunch 
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    • 13.30 - 15.00 
    • Session 3: Incident Data Collection and Risk Reporting 
    • The role of incident data collection
    • Data features: core losses and tail risks
    • No averages in risk: information is in deviations
    • Golden rules of reporting
    • From data to insight
    • Class interaction: best practice and sharing of experience
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    • 15.15 – 17.00 
    • Session 4: Influencing Risk Culture 
    • The role of incident data collection
    • Data features: core losses and tail risks
    • Three golden rules of reporting
    • Management information: the “reporting cake”
    • Class interaction: best practice and sharing of experience
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    • Concluding remarks:
    • The future of operational risk 
    • Positive Risk Management