Aims
This is an intensive course on Operational Risk Management & Mitigation – from assessing the operational risks to how to implementing a working, viable operational risk management system. Aimed at the financial services industry this course explores the Operational Risk Management (ORM) function and mitigation requirements as mandated in the Basel Accords.
A key objective of this course is to move the participants beyond the operational risk compliance requirements set down in the Basel Accords to an understanding of managing operational risk as a value added proposition that can be instrumental in increasing the profitability of the bank while at the same time improving its structural strength.
Now in 2014, the ongoing continuum of headline-grabbing operational risk incidents at banks, other financial institutions and even regulators continue to keep the issue of operational risk management at the top of agendas of CEO’s , CRO’s, Risk Managers and Internal & External Auditors alike.
These incidents are wide ranging and flow from bank ATM collapses, bank operating system failures, regulatory settlements in the ongoing US sub-prime mortgage saga, rogue traders and the connected risk managers who either missed or were willfully blind to all the warning signs.
As the size and complexity of financial institutions have increased, so too have the challenges of understanding and reducing operational risks down to truly manageable levels. Increased regulatory concern and scrutiny have also increased the cost of operational risk events in the shape of outright financial loss, regulatory fines and declining customer confidence
ORM is an effective tool for not only maintaining but increasing, bank profits, shareholder value, public perceptions and goodwill.
Executed properly, improvements in ORM can lead to substantial financial, reputational and regulatory benefits – all this adds to increased profitability, greater financial stability and improved customer satisfaction – in short, a better safer bank/ financial institution.
But to achieve these gains, financial institutions must apply a consistent and comprehensive approach to managing their operational risks. They must also understand that this approach is fundamentally different from the approaches that they use in managing market, credit and liquidity risks.
"Bad" ORM has a severely negative effect on financial institutions in four very clear ways;
- Actual operational risk losses are a direct hit to the income statement. Equally the massive fines being paid have the same effect.
- The market punishes companies, via the stock price, for operational risk failures. This loss of value could well exceed the actual financial loss experience by the risk event in the first place.
- Lowered Credit Ratings, which raises the institutions cost of borrowing money in the marketplace.
- Operational risk failures can vastly increase the cost of compliance by raising the level of regulatory scrutiny and complexity not to mention substantial penalties.
All too often banks have seen the need to effectively manage their operational risks as simply an issue of complying with what the bank regulator requires, in this case the operational risk requirements of the Basel Accords, rather than a disciplined process in its own right, that serves to not only ensure a banks survival but which can, in the long run, contribute to that bank’s financial fortune.
Implementing an effective ORM routine (“Good” Operational Risk Management) is a complex process. At its core is an understanding of what operations risk is and how it can be managed.
This course is an intensive introduction to operational risk management and mitigation. It is designed to provide a practical “hands-on” approach to participants which will furnish them with all the tools and techniques they need to begin implementing what they have learned as soon as they return to the office.
The underlying course philosophy is to move the participants beyond the largely theoretical international compliance requirements for operations risk (specifically those contained in the Basel Accords), and into an understanding of the practice of operations risk management and an ability to actually implement these procedures.
Operations Risk -
Active Management & Compliance
Which organizations should attend?
- Commercial Banks
- Central Banks
- Investment Banks
- Bank Regulators
- Asset Management Firms’ Representatives
- Pension Funds
- Hedge Funds
- Leasing Companies
- Insurance Companies
- Fund Managers
- Other Financial Institutions
Who should attend the course?
- Financial Officers
- Risk Officers
- Internal Auditors
- Operational Risk Managers
- Compliance Officers
- Staff with roles and responsibilities in operational risk in risk management departments, businesses and central departments
- All front-, middle- and back-office staff in operational roles
- This course is not restricted to management staff alone but to all staff who are required to be “Operational Risk” aware
Objectives
The objectives of this training course is to provide all staff, irrespective of whether they work in the front-, middle- or back-office, with a sound foundation in the theory and practice of ORM. This training is provided in a practical "hands-on" manner that allows them to implement what they have learned easily and effectively the minute they return to the office.
What this course covers
This course provides a complete structured package for learning in all main aspects of the subject of managing operational risk under the Basel Accords. It will enable participants to prepare and manage the planning and implementation of operational risk management processes in their bank/ financial institution or firm.
Key objectives and learning outcomes
The aim of the course is to provide:
- An understanding of risk in all its facets
- What the Basel Accords say about operational risk and its mitigation
- An understanding of operational risk techniques for assessing, managing and mitigating operational risk
- A link between ORM theory & practice
- A clear "road-map" on how to implement an ORM structure in practice in a banking organization.
Methodology
This training course uses a combination of prepared tuition, examples, discussions, exercises and case studies. Most importantly it will offer participants, opportunities to share experiences and plan work within small working groups, providing practice in the application of the techniques and tools generating active participation.
AGENDA:
| Day One (8:30 AM – 5:30 PM) | Day Two (8:30 AM – 5:00 PM) | ||
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Registration Process: 8:30 AM – 9:00 AM Session Start Time: 9:00 AM THE WHY, HOW & WHAT OF OPERATIONAL RISK
All Basel material is current and up-to-date in terms of current BIS developments
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IMPLEMENTATION
We examine the BIS categories of operation risk in terms of specific examples. The categories covered are:
New technologies and practices are changing the nature of bank operational risk in many dramatic ways. In this section we explore a selection of current “risk themes” and get to grips with how the operations risk profile is changing in the constant struggle between profit and prudence. This is a fast changing area and this section of the course is being constantly updated.
This case study on a recent event provides an in-depth examination of operational risk management failures resulted in substantial losses to UBS. We look at what went wrong and why and what lessons can be learned from this series of events. Why and how were the lessons of the 2007 SocGen event ignored? Included in this case study we have a special section on rogue traders generally in which we deal with issues such as; |
Meet Your Instructor
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Richard Barr Operational Risk & Back Office Specialist Richard Barr , holds a B.S. in International Business Administration from San Jose State University in California. His professional experience spans over 23 years, 5 of which were spent with Wells Fargo Bank. Another 5 were spent honing his global banking skills, when Richard was intimately involved with International Trade Finance, Real Time Gross Settlement and Cross Border Banking. The past 14 years have been in the private and high-tech sectors providing high-level consulting services, business analysis, project management and training to a wide range of banking clientele across the globe. Richard has also filled the role of advisor to central banks on payment systems and technical payments issues. Furthermore, key staff members from the Bank of England, South African Reserve Bank, Central Bank of Ireland, Bank Indonesia, European Central Bank and Bank of Portugal have attended training sessions presented by Richard. |
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Written cancellations through fax or email (from the person who has registered for this conference) received at least 10 calendar days prior to the start date of the event will receive a refund — less a $200 administration fee. No cancellations will be accepted — nor refunds issued — within 10 calendar days from the start date of the event.
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Testimonials
This was a well-organized event. The speaker was very informative and the seminar was covering great real life examples that kept everyone engaged. ComplianceOnline is very helpful and it has a professional approach in conducting regulatory trainings.
- Third Party Vendor Management Lead, JPMorgan Chase
The seminar was very informational and the material is very useful in implementing risk assessment program in organizations.
- Cash Management Operations Assistant Manager, Flushing Bank
Instructor was highly knowledgeable and the subjects were well chosen.
- Audit Supervisor, Flushing Bank
Richard did a great job and topics related to operations risk structures and frameworks were highly useful.
- Manager, Discover Home Loans, Inc.
This was a very informative seminar. The presenter had thorough knowledge on the subject. He was providing good examples on each topic as he went through the program.
- Deposit Operations Manager, AVP, Flushing Bank
It was a good introduction into risk assessment.
- AVP, Risk Management, MB Financial Bank
Richard was very knowledgeable on the topic.
- Assistant Vice President/Branch Operations Team Leader, Flushing Bank
Real world examples discussed during the seminar was beneficial.
- VP of Operations, Southwest Securities
This seminar was very informative and the speaker was very knowledgeable. Case studies discussed were highly useful.
- Assistant Security Officer, Flushing Bank
Seminar was very informative. Most of the topics were valuable to me. It has given me more confidence to carry out my role with major rigor. ComplianceOnline provided great customer service.
- Operational Risk Analyst, American Express
It was a very interactive seminar. Excellent participant involvement across the whole group. Support material provided was very useful.
- Senior Consultant-Office of Chief Compliance Officer, National Australia Bank Limited
Seminar was very helpful and I have learnt a lot. This is my first seminar so it is hard to compare. However, I am confident that I can go back to my job and apply some of these course modules to my operational job duties.
- Risk Manager, Ezypay
Presenter is very knowledgeable. He made the seminar a fun place to learn. He took the fairly dry subject matter - risk management - and made it interesting and relevant.
- Senior Manager, Macquarie Group Limited
All topics were relevant to me. I liked the case studies and discussions between the speaker and other participants.
- Consultant Management Assurance & Risk, National Australia Bank Limited
It was a very good seminar. I enjoyed listening to the real life stories linked to the topics from the presenter and also fellow attendees. This course has helped in building networks. It has given me a good insight on how I can add value to work with our operation risk manager.
- Operations Manager, National Australia Bank Limited
It was a very interactive seminar. Richard is very knowledgeable and experienced.
- Executive Manager-Group Assurance, Westpac
I thoroughly enjoyed the seminar. All the topics were useful for me.
- Operational Risk Advisor - Channel, Deposits and Network, Suncorp Bank
Richard is very knowledgeable. He was very engaging and utilized great presentation skills.
- Senior Manager, Macquarie Group Limited
Speaker was excellent. He conveyed the content in a practical, simple method. Support material provided is very useful.
- Head of Risk and Compliance, Pepper Australia Pty Ltd
All topics were valuable to me. Richard was very good. I enjoyed the seminar.
- Risk & Controls Advisor, Suncorp Bank
Seminar was well organized by ComplianceOnline. All the topics were useful to me. I thoroughly enjoyed the seminar.
- Portfolio Risk Analyst, Teachers Mutual Bank
This course provided good insights into key risk indicators. Case studies were interesting and relevant. Presenter was very experienced.
- Assurance Officer, ANZ E*TRADE
Most of the course topics were valuable to me. Richard is very knowledgeable. He was able to relate the principles of the course to modern day scenarios.
- Operations Manager, National Australia Bank Limited
It was a very good seminar. All topics were interesting.
- Supervisor, Mizuho Bank Ltd
It was a very interesting seminar. All the topics were valuable to me. Presenter was very engaging and knowledgeable.
- Group Risk Manager, HCF
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