Managing Operational Risk - Practical Approaches for Financial Services
||On a date of your choice
||Available on application
Course Outline & Objectives
Operational risk has been described by the Basel Committee as “the risk of losses resulting from inadequate or failed internal processes, people and systems, or from external events.”
While many financial services organizations will have a specialist Risk professional or team managing the risk model, the actual, day to day risks are managed within the business functions. However sophisticated the risk model, therefore, it is critical that managers in the business, who may not be dedicated risk specialists, have the understanding and skills to manage the risks they encounter on a daily basis.
By relating the principles of risk management to everyday business situations, this highly practical course will help you translate the theory of risk management into workable techniques for managing the operational risks in your area and increasing your risk management effectiveness.
In addition, the programme will also illustrate how operational risk management can be a useful tool for achieving targets and goals and improving business performance.
Attending this course will enable you to:
- Relate the principles of risk management to everyday business situations
- Translate the theory into workable and effective risk management techniques
- More usefully interpret and report the risk data you receive
- Distinguish between the controllable and uncontrollable: focus resource
where impact is possible
- Pinpoint the real causes of risk issues, using a range of recent case studies
- Identify and assess options for improving your current risk controls
- Define the KPIs that help you monitor the overall level of operational risk
- Use operational risk management to drive performance improvements
- Review your current risk management methodology in the light of industry experiences and FSA expectations
Who Will Benefit?
This course is essential for Managers of a Support or Business function who are responsible for monitoring, managing and reporting on risks. It is also suitable for Risk Specialists new to a Risk Management role.
This event is not intended for risk specialists or individuals with a high degree of risk management experience. Rather, it has been specifically developed for General, Departmental, Operations and Administrative managers who wish to improve their business performance through effective risk management processes and behaviours.
The exercises and case studies employed will be of most relevance to those from Banks, Building Societies, Insurance Companies, Wealth Managers and Intermediaries.
You will have the opportunity to work in small groups, applying theory to case studies based on real life events where the quality of risk management played its part in success and failure. This is a fully interactive programme with the minimum of “lecture” style and maximum of “hands on” application. Group size is kept to a maximum of 16 to facilitate knowledge transfer and sharing of experience among the delegate.
Workshop Leader: Philip Ingle
Phil has worked with CTP for over 7 years as a management and training consultant and his energetic training style, combined with clear communication of complex issues, has helped people at all levels of business to develop critically important skills in risk management, people management and strategy development. Phil holds an MBA (Cranfield) and is a graduate of the Chartered Institute of Personnel and Development. He is a Master Practitioner of Neuro Linguistic Programming and holds Level ‘A’ Certificate of Competence in Occupational Testing from the British Psychological Society. He is an Associate of the Chartered Institute of Bankers and holds the Financial Planning Certificate. He is also a member of the Institute of Directors and Professional Speakers Association.
|Risk and Reality
|To look at the role of risk management and how successful risk management enables other business objectives to be met
- How operational risk varies between customer facing staff, contact centres and central functions
- How existing risk procedures reflect the probable barriers to business expansion
|What is Risk?
To draw on examples of risk from various business situations
To consider different elements of risk measurement through the Risk Matrix
- How to identify key risk indicators
- The relationship of controls to risk and suitable indicators
- The role of KPIs and how they reflect both risk and control
|Categories of Risk
||To explore different areas of risk
- Potential scenarios
- Impact of action and inaction on business objectives
- Case Studies
|Risk and Regulation
||To review FSA’s current requirements and explore the application to operational risks
- How risks can be quantified and monitored on a regular basis
- Syndicate Exercise: identifying risk and ranking them according to likelihood and impact
- Review of case studies focusing on impact of failed risk assessment
|How are Risks Controlled?
||To consider what methods are used to minimize risks and their effectiveness in different situations
- Syndicate Exercises: how identified risks are monitored in future
- How well these methods work in practice
- What better methods may reduce the impact of these risks further?
Prioritising and Managing Risk
|Applying the principles
|Key Performance Indicators
||To identify the KPIs that help monitor the overall level of operational risk
- Review ways of reporting to senior management that give early warning of changes for the worse
- Case Studies: how to identify isolated incidents and prevent them turning into disasters
|Risk Analysis and Business Performance Part 2
||To examine how to develop a systematic approach to risk management
- Identify the right data
- Establish the root cause of trends
- Enable analysis of options to correct or enhance the position
- Assessing and selecting the most appropriate action
- Implementing change
- Monitoring the effectiveness of that action
|Risk Analysis and Business Performance Part 2
||To use a model of effective risk management
- Case Study: practical application of this model
|To discover ways to involve those responsible for risk on a day-to-day basis
- Syndicate Exercises: examine benefits of effective risk management and cultural barriers that may exist
- Ways to prioritise risk management
- Enabling managers to manage risk rather than simply monitor the data
If you are interested in booking this course, or if you have any questions, please call call us on 01908 488170.