Operational and Integrated Risk Management
The term operational risk management (ORM) is defined as a continual cyclic process which includes risk assessment, risk decision making, and implementation of risk controls, which results in acceptance, mitigation, or avoidance of risk. ORM is the oversight of operational risk, including the risk of loss resulting from inadequate or failed internal processes and systems; human factors; or external events.
Operational and Integrated Risk Management – A 2-Day Workshop
This area focuses on methods to measure and manage operational risk as well as methods to manage risk across an organization, including risk governance, stress testing, and regulatory compliance.
The broad knowledge points covered are:
- Principles for sound operational risk management
- Enterprise Risk Management (ERM) and enterprise-wide risk governance
- IT infrastructure and data quality
- Internal and external operational loss data
- Methods of determining operational risk capital
- Model risk and model validation
- Extreme value theory (EVT)
- Risk-adjusted return on capital (RAROC)
- Economic capital frameworks and capital planning
- Liquidity risk measurement and management
- Failure mechanics of dealer banks
- Stress testing banks
- Third-party outsourcing risk
- Regulation and the Basel Accords
What Will You Learn
At the end of the workshop, participants should be able to understand:
- Operational risk governance and ERM, including recommended principles to manage operational risk, governance principles for risk appetite frameworks, and data quality management.
- Issues related to modeling extreme losses, identifying and mitigating model risk, and validating models.
- Liquidity risk, the use of repurchase agreements, liquidity adjustments to VaR, and methods to manage funding and transactions liquidity risk.
- How banks prepare for and respond to periods of financial distress, including stress testing approaches.
- Regulatory guidelines and requirements, including guidelines for managing outsourcing risk and an overview of the Basel regulations.
- Bonus: Current Issues in Financial Markets
Workshop Duration: 2 Days