Learn operational risk management and its importance in overall risk frameworks. Identify, assess, and mitigate risks related to processes, systems, and human error, while developing a framework that includes incident reporting and risk controls.

Learning Objectives:

• Understand the principles of operational risk management and its role in the overall risk framework of an organization.
• Learn how to identify, assess, and prioritize operational risks that can impact business processes.
• Develop skills to implement an operational risk management framework, focusing on risk identification, control, and mitigation strategies.
• Explore the role of technology, data, and analytics in monitoring operational risks.
• Learn how to create and implement risk control measures to prevent or mitigate operational losses.
• Understand the importance of incident reporting, root cause analysis, and risk monitoring in managing operational risks.
• Master the process of developing Key Risk Indicators (KRIs) to track operational risks.
• Understand the regulatory requirements and industry best practices related to operational risk management.

Course Outline:

Introduction to Operational Risk Management (ORM):

• Definition and importance of operational risk management in an organization.
• Key ORM frameworks and standards (e.g., Basel III, ISO 31000).

Operational Risk Identification and Assessment:

• Identifying risks related to processes, systems, human error, and external events.
• Assessing operational risks based on likelihood and potential impact.
• Developing a risk register for operational risks.

Developing an Operational Risk Management Framework:

• Key components of an operational risk framework.
• Aligning operational risk management with the organization’s overall risk strategy.
• Roles and responsibilities in operational risk management.

Risk Control and Mitigation:

• Implementing controls to mitigate identified operational risks.
• Developing contingency plans for operational failures.
• Risk transfer strategies (e.g., insurance) and outsourcing risk management.

Incident Reporting and Root Cause Analysis:

• Setting up incident reporting systems and analyzing operational risk events.
• Using root cause analysis to prevent future operational failures.

Monitoring and Reporting Operational Risks:

• Developing Key Risk Indicators (KRIs) to monitor operational risks.
• Reporting operational risks to stakeholders and senior management.

Role of Technology in ORM:

• Leveraging technology and data analytics for real-time monitoring of operational risks.
• Implementing risk management software and automation tools.

Regulatory Requirements and Best Practices:

• Understanding the regulatory obligations for operational risk management (e.g., Basel III).
• Best practices for embedding operational risk management into day-to-day operations.

Case Studies and Real-World Applications:

• Examples of operational risk events and lessons learned from risk management failures.
• Case studies highlighting successful implementation of ORM frameworks.

Duration:

2-3 Days (with case studies, practical exercises, and workshops).

Level: Intermediate to Advanced

• Suitable for risk managers, compliance officers, business leaders, and professionals responsible for managing operational risks.

Prerequisite:

Basic understanding of risk management and business operations.

Category:

• Risk Management
• Operational Risk/Corporate Governance