Understanding Risk Assessment and Mitigation

Course outline and objectives

In a summary of key issues cited in FCA disciplinary procedures, it was stated that poor quality/inadequate risk assessment and management procedures were mentioned in over 50% of disciplinary actions prosecuted by the FCA. Effective risk assessment and management are fundamentals of governance and control but are often only paid lip service.

This course explores the purpose of risk assessment and management, their central place in the governance structure of the firm and identifies where firms so often fail to get risk assessment and management right, including common misconceptions relating to risk.

The programme will equip delegates with a range of techniques and approaches for assessing, quantifying and reporting risk at line management and Board level, leveraging the approach the FCA takes, the Conduct Risk Framework and other key regulatory approaches.

Using case studies and worked examples, the focus will be on enabling delegates to produce focused, intelligible, relevant and useful risk assessments and reporting which can drive risk mitigation, support the risk appetite statement and demonstrate how senior management have taken 'reasonable steps' to prevent breaches.

Topics may include but are not limited to:

• Risk concepts and probability fallacies
• How the FCA assesses risk
• Techniques for engaging the business effectively
• Using the Conduct Risk Framework
• Risk assessment and the ICARA/ICAAP/ORSA
• "Hacking" mindset and "red teaming"