Advanced Operational Risk Management Techniques
Date: 22 – 25 June 2020 | Lebanon Time: 10:00 – 13:00 ( + 3 GMT)
From risk framework to risk culture, from project risk to cyber risk, this webinar series covers in breadth and depth the most topical elements of operational risk management these days and its challenges for the financial services industry.
Designed and delivered by a world leading expert in the field, the course is a must-have for all the operational risk practitioners wishing to benchmark their practice and a fantastic opportunity for newcomers to gain a comprehensive overview what modern operational risk managers need to know.
Key Objectives and Learning Outcomes:
After the course, participants will know about:
- New framework for risk management
- Taxonomy of risks, causes and impacts
- Risk networks rather than risk registers
- RCSA guidance and comparability
- Assessing rare events in simple yet robust ways
- Leading KRIs framework for identification and design
- Operational risk management for projects
- Building a framework for risk culture change
Who Should Attend?
Chief Risk Officers
Heads of Operational Risk
Operational Risk Managers
Enterprise Risk Managers
Session 1: Framework and Taxonomy for operational risk management
Part 1: Risk Management Framework
The session reviews the different risk management frameworks currently used in the industry, highlighting the benefits of new contributions such as the revised ERM COSO framework.
Part 2: Cause, Risk and Impact Taxonomy
Next, the session discusses the importance of a risk taxonomy that extends to causes, controls and impacts, as well as highlighting the links between various risks, for a representation of their interdependence and connectivity, rather than a single list.
Session 2: Risk appetite statements and KRI limits
Risk appetite is the foundation of any consistent framework. This three-parts session reviews the best practices for structuring, cascading and communicating risk appetite statements. Based on years of practical experience, this session presents cases, examples and suggestions to define sound risk appetite statements in firms.
- Part 1: Risk Appetite Structure
- Part 2: Expressing Risk Appetite
- Part 3: Actionable Risk Appetite
Session 3: Risk and control self-assessments
Part 1: Modern RCSA
Risk registers and RCSA have been around in the industry since the beginning of operational risk. Simple in appearance, the tool requires strict methodology and guidance to be applied consistently and to deliver useful information; this session explains how.
Part 2: Control Testing and Design
The second part of this session reviews essentials of a control testing framework based on inherent risk and the features of the controls to be tested. It also gives types of ineffective design of controls to be aware of and review the seminal work of James Reason on human error and control design.
Session 4: Scenario analysis: simple method for assessing rare events
Scenario analysis is critically important in risk, both for management and measurement. Quantification of rare events does not have to be guess-work and does not necessarily require heavy quantize background. The session explains how, is a few simple steps, scenario assessment can be decomposed into a useful discussion about exposure, control layers and points of failures, for better mitigation and more robust quantification.
- Part 1: Scenario Identification
- Part 2: Scenario Assessment
- Part 3: Scenario Validation
Session 5: Six steps to define and design preventive KRIs
Preventive KRIs are metrics of risk drivers. Once we know the causes of a risk, identifying KRIs is easy. This session presents tools and technique to identify and select KRIs, before detailing how to design KRI dashboards and the different alternative to select relevant threshold. KRI governance and reporting will also be discussed.
- Part 1: Preventive KRIs: Identifying Causal Factors
- Part 2: Four Types of Preventive KRIs
- Part 3: Designing and Reporting on KRIs
Session 6: Operational Risk Management for Projects
Project and changes are common place in the financial industry. It is only recently that project risk is explicitly included in the operational risk management scope. Yet, the coordination between the risk function and the project management teams are not always straight-forward. Based on practical successful experiences, this session suggest framework and policy rules to assess and address operational risk on corporate projects.
- Part 1: ORM for Projects
- Part 2: Essentials of Projects Management
Session 7: Information Security assessment and essentials of cyber protection
Cyber risk is voted top risk for the financial industry for three years in row. This session explains how the same risk management framework can be applied to cyber risk and, more generally, to information security risk assessment. Based on real case studies, it presents a taxonomy for information security risk, essentials of assessment and the key elements of mitigation of cyber and information risk.
- Part 1: Information Security Risk Assessment
- Part 2:Information Security Risk Mitigation
Session 8: Conduct and Culture: measurement and management
Culture – or risk culture – is measurable as long as one defines an target objective. Inspired by the Influence methodology and based on practical conduct and culture assignments, this sessions presents practical ways to approach and influence risk culture in an organisation, as well as most of the common metrics to monitor good conduct in financial companies.
- Part 1: Context and Metrics
- Part 2: Behaviors
- Part 3: Case Studies
Course Tutor: Dr. Ariane Chapelle
Ariane Chapelle, PhD, is an internationally recognized trainer and consultant in Operational Risk. Dr. Chapelle is Honorary Reader at University College London for the course ‘Operational Risk Measurement for Financial Institutions’ and is a Fellow of the Institute of Operational Risk. In 2018, she designed the Certificate of Learning and Practice in Advanced Operational Risk Management, an accredited course for the Professional Risk Managers’ International Association (PRMIA), which she delivers globally.
Dr. Chapelle runs Chapelle Consulting, a training and consulting practice in risk management serving Tier 1 to Tier 3 financial organisations and international institutions, including central banks and UN agencies.
In 2019, Chapelle Consulting received the Risk.net Award for ‘Outstanding Achievement in the Year in Operational Risk’.
Dr. Chapelle is a former holder of the Chair of International Finance at the University of Brussels with backgrounds in internal audit, credit risk and investment risk. She has been active in operational risk management since 2000 and was formerly head of operational risk management at ING Group and Lloyds Banking Group.
Her new textbook Operational Risk Management: Best Practices in the Financial Services Industry, published by Wiley Finance Series in December 2018, rapidly became the No.1 best seller in its field. It is now translated in French by Pearson France, to be out of press on March 27, 2020.
More detail on www.chapelleconsulting.com
PARTICIPATION FEES: 450$
MEANS OF PAYMENT Please find below our account in USD at Arab Bank- Jordan Arab Bank – Amman – Jordan Shmeisani Branch Account no: 0118/010272-5/510 Iban no: JO76 ARAB 1180 0000 0011 8010 2725 10 Swift code: ARABJOAX118 Beneficiary name: Union of Arab Banks
For more information and registration kindly send an email to: [email protected]