Operational Risk in Banking & Financial Institutions 3-Day Practical Workshop

May 16 - 18, 2016 & October 19 - 21, 2016

Miami, USA

This practitioner-led 3-day intensive fully accredited course is designed for professionals in the banking, insurance and financial services industry seeking to enhance their knowledge in the operational risk arena. The course describes operational risk, governance, tools, techniques, what it means to the financial sector and where operational risk sits within the risk framework.

This is the same CISI accredited preparatory course toward achieving the

internationally recognized CISI Operational Risk certificate (Level 3). An exam and

certificate option is available but not mandatory.

Key Topics

� Overview of Risk Management

� Nature of Operational Risk

� Modelling approaches

� Causes, Consequences and Impact of Operational Risk Events

� Operational Risks Arising in the Trade Cycle

� Business processes

� Support and Control Functions

� Operational Risk in the Regulatory Environment

Who should attend?

The course is appropriate for all Risk Management staff, Analysts, Internal and External

Auditors, IT and Operations professionals, Business Managers and Non-Executive Directors

Methodology

Practitioner-led, highly interactive classroom learning using up-to-date case studies &

practical exercises.

Course features:

• Expert trainer with practical industry experience

• Content-rich slides for desk reference

• CISI Study Guide & Workbook (for exam preparation)

• 90 day Email Q & A Service with Practitioner following the course

• Complimentary Membership in Risk Reward Global Risk Forum & Subscription to

Risk Reward Global Risk Update & past articles

For an in-house training option, alternative dates and locations are available. We are happy to add extra content to the program to meet additional requirements from your company. Please contact us for further information. www.riskrewardlimited.com

Advanced Preparation: None

Training Type: Group-Live

Learning Level: Intermediate

Field of Study: Risk Mgt

Group Booking Discount*

2 delegates - 3 delegates - 4 delegates -

5% discount 10% discount 15% discount

*Available for delegates form one organisation attending the same course

Early Bird Discount

ONLY $2,495

I never imagined the great impact

of the operational risk on the

business as a whole before

attending this course...I got a lot of

ideas to implement in my

department/bank.

J.G., Head of Internal Audit

– Banco Nacional Ultramarino

Risk Reward Limited ICYC|16900 N Bay Rd | Tower 3 Suite 2505 | North Miami Beach | 33160 Florida USA

Miami | + 1 305 831-4913 | New York +1 917 310-1334 | americas@riskrewardlimited.com

Course Director: Dennis Cox is an international banker, risk management and internal audit specialist serving banks, regulators

and financial institutions with 30 years international experience in developed and New Markets. With a risk and audit career encompassing HSBC, Prudential Portfolio Managers, Ernst &Young and BDO Dennis, as CEO of Risk Reward Ltd advises banks on all areas of risk management, the modernization of bank internal audit and the auditing of compliance risk areas to maintain competitiveness and growth. He is a specialist in risk and audit for bank credit, treasury, operations and accountancy issues related to the Basel Accord and Dodd-Frank, insurance and bank risk and managing changing regulatory environments in turbulent global markets. He is a Fellow, Co-founder and recent Chairman of the Risk Forum for the UK Chartered Securities and Investments Institute (CISI) and holds degrees in mathematics and chartered accountancy. Dennis is a Euromoney risk conference chairman, the Editor-in-Chief of The Global Risk Update, the author of The Frontiers of Risk Management, The International Handbook of Money Laundering Deterrence, Banking and Finance: Accounts, Audit and Practice and The Mathematics of Banking and Finance.

Miami | + 1 305 831-4913 | New York +1 917 310-1334

americas@riskrewardlimited.com www.riskrewardlimited.com

Operational Risk in Banking & Financial Institutions

Detailed Course Description

Day 1 - Operational Risk Management

Session 1: Overview of Operational Risk Management

• What is operational risk?

• Relationship to other risk classes

• The role of the Board

• The role of the Audit Committee

• The role of non-executive directors

• The responsibilities of the operational risk management function

• Matrix management

• The relationship to the internal audit and legal functions

• What is risk appetite or risk tolerance, how is it calculated and how

is it distributed within a business?

Case Studies:

• Review the published structures of listed companies and consider

what structures are appropriate for companies of differing sizes

• Calculation of risk appetite

Discussion Question: To what extent should risk appetite be used for

economic capital modeling within a business?

Session 2 – Development of an Operational Risk Framework

• Development of operational risk policies

• Development of an operational risk framework

• The importance of flowcharting procedures

• Business process modeling

• Identification of key controls

Case Study: Flowcharting of business processes

Session 3 – Development of key process and risk indicators

• What is a key process indicator?

• What is a key risk indicator?

• How to design key risk or performance indicators?

• How many indicators are suitable?

• Relationship to quality modeling systems

• Reporting of indicators and the balanced scorecard

Case Study: Development of key risk indicators

Discussion Question: How many indicators might be suitable for a

company?

Day 2 – Operational Risk Management

Session 4 – The Risk Register

• What is a risk register?

• How should a risk register be developed?

• Prioritization of risks

• Assessment of severity

• Assessment of likelihood

Case Studies:

• Develop a key risks register

• Assess severity and likelihood

Session 5 – Control and risk self assessment

• The role of control and risk self assessment within risk

management

• The relationship of risk management to corporate governance

• Demonstration of a corporate governance product

• Presentation of a typical control and risk self assessment product

• How to implement control and risk self assessment in a corporate

environment

• Consideration of cost and reward from controls

• Reporting control and risk self assessment

• What are the problems?

Discussion Question: Consider how to maintain adequate quality over the

control and risk self-assessment process and what might be criteria

identifying failures in the process

Case Study: Consider how to audit control and risk self-assessment

Session 6 – Non Goal Correlated Events

• What is a non-goal correlated event?

• Personal vs. corporate risk appetite

• Unexpected profits and unexpected losses

• What is really unexpected?

• To what extent are events captured within product pricing?

• What is the role of capital?

• Maintenance of loss databases

• Relevance of loss data

Case Study: Consider why losses may not be relevant to an institution

Discussion Question: To what extent do you intend to include losses

within economic capital modeling?

Good Focus on the governance

And risk management issues.

Rothschild Bank

Miami | + 1 305 831-4913 | New York +1 917 310-1334

americas@riskrewardlimited.com www.riskrewardlimited.com

Session 7 – Building the final framework?

• How to build all the tools into a consistent framework

• How to combine this with economic capital modeling

• How to combine this with corporate governance rules in particular

• Conclusions

Discussion question: How much operational risk management is

sufficient for a company?

Day 3 – Banking Operational Risk Management

Session 8 - The Structure of Operational Risk within Banking

• What is operational risk within banking?

• The Basel Accord options (updated for new rules)

• Calculating the operational risk capital charge under the basic and

standardized approaches

• Boundary issues with credit risk and market risk

• Stages in building a operational risk framework

• Development of a risk appetite

Case Study: Calculation of risk appetite for a bank

Discussion question: How long should a risk framework be and how

should it be kept up to date?

Session 9 - The Specific Building Blocks

• Risk identification

• Implementation of a risk register

• Assessing severity and likelihood

• Undertaking business process modeling

• Implementation of control and risk self assessment

• Development of Key risk indicators

• Impact of outsourcing

Case Studies:

• Assessment of severity and likelihood for a bank

• Development of key risk indicators for a bank

Session 10 - Loss data analysis

•

Internal loss database development

• The problems with internal loss data

• How to use external loss data

• Data scaling

Case Study: Development of a Basel compliant internal loss database

Session 11 - Stress Testing and Scenario Modeling

• What is sensitivity analysis and how should it be conducted?

• What is stress testing?

• At what confidence level should stress testing be conducted?

• Stress testing within the banking community – what is currently

undertaken?

• What is scenario modeling?

• How extreme should scenario modeling be?

• Scenario modeling and lessons from the past

• How does operational risk management relate to business

continuity planning?

• What is the role of insurance

• How should outsourcing be considered?

Case Studies:

• Sensitivity analysis

• Stress testing

• Scenario modeling

• Business process modeling and cascading risk

Discussion question: To what extent is insurance included within

operational risk management?

• Severe business continuity planning

Case Studies:

• Lessons from major disasters

• Stress testing and scenario modeling in banks

The CISI is the UK’s largest and most widely respected professional body for the Securities and Investment industry. CISI Certificates are included in the UK’s Financial Services Skills Council’s list of Appropriate Examinations and are recognised for all major activities.

Very helpful at building foundations on operational risk. Good, big picture

explanations as well as right level of detail. Very focused.

C.T., Private Banker

Tel: + 1 305 831-4913 americas@riskrewardlimited.com www.riskrewardlimited.com

Miami | + 1 305 831-4913 | New York +1 917 310-1334

americas@riskrewardlimited.com www.riskrewardlimited.com

Operational Risk in Banking & Financial Institutions

Prices & Booking

3-Day Practical Workshop

Miami, USA

Please mark X in the box and complete the form with BLOCK LETTERS

Dates: May 16 - 18, 2016 October 19 - 21, 2016

Course Fee:

$2,795.00 USD

Early Bird $2,495.00 USD – Only, if you submit your booking form and pay by February 29, 2016 or August 31, 2016 (as relevant)

Please register me for the Optional CISI Examination & Certificate Package at the additional price of $350

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Terms and Conditions All cancellations must be received in writing 20 working days prior to the start of the course with acknowledgement from Risk Reward. Course fees must therefore be paid in full if a cancellation occurs within 20 working days of the start of the course. We are always happy to welcome a replacement onto the course. Kindly send us written notification of your replacement by email, fax or telephone. Written cancellations received 20 working days or more before the start date of the course receive

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Signature Date

Risk Reward Limited ICYC|16900 N Bay Rd | Tower 3 Suite 2505 | North Miami Beach | 33160 Florida USA

Miami | + 1 305 831-4913 | New York +1 917 310-1334

americas@riskrewardlimited.com www.riskrewardlimited.com

UK Companies House # 434 6234.

Excellent coverage, style good knowledge in one subject. This

course gives a helicopter view of Risk. An effective way of

managing operations risk was learnt.

Shan Shan Sabliyasnagam, Op Risk - QNB

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