Risk Quantification in Operational Risk
About The Seminar
With some years of loss data collection now achieved, directors and regulators are expecting more and better use of it. CROs and Operational Risk managers need to upgrade the information and recommendations about risk strategies and about how to allocate resources for best control. OR units need to develop quantitative methods to demonstrate the reports and recommendations are based on fact and data, both from internal loss events and also from data outside the firm and combining it with expert opinion.
Regulators increasingly emphasise that banks should improve knowledge of how they could suffer major losses, and know how best to limit them. Use of quantitative techniques and data has to be greatly increased.
In this course, techniques for improving the quantitative assessment of risks, and especially the potential for the most significant losses, will be presented with worked examples and short practice exercises.
KEY LEARNING OUTCOMES
- Recognize additional quantitative techniques for risk estimation
- Gain confidence is using techniques in estimation
- Improve data for qualitative and quantitative methods
- Enhance the value to directors of the risk assessments and reporting
- Handle data breaks and inconsistencies
- Handle Interrelationships between risks
- Implement growing regulatory requirements and expectations of risk assessment
- Develop techniques for assessing major risks for scenario analysis and stress testing
- Improve Risk Identification and root cause analysis
- Assess control effectiveness
- Improve risk aggregation for Capital Adequacy assessments (Basel requirements)
- Formulate risk reporting through good KRIs and report formats
Date: 4th & 5th December 2018
Venue: Kuala Lumpur
- Operational risk managers & staff
- Group risk management staff
- Risk analysts
- Directors of risk management
- Heads of operational risk management
- CROs
- Enterprise risk managers
- Statistical managers and analysts
- Strategic risk managers
- Business continuity managers
- IT and IT security managers
- Internal auditors
- Internal audit managers
- Compliance officers
- Project managers
- Regulators and supervisory bodies
Early bird : RM3,599
Register before 2nd November 2018
Standard : RM3,999 per delegate
If you are looking for an in-house training program or wish to send a group to an existing public program, kindly please contact Andrew Tebbutt at [email protected] or +603 2162 7802.
Learn More
Kindly complete the registration form and email to [email protected] or fax +603 2162 7810
For enquiries please contact:
Normariya Sariman
Account Manager, REDmoney Seminars
[email protected]
Direct Line: +603 2162 7800 ext 44
Ramesh Kalimuthu
Events Sales Director
[email protected]
Direct Line: +603 2162 7800 ext 65
Fax: +603 2162 7810
For sponsorship & speaking opportunities:
Andrew Tebbutt
Managing Director
[email protected]
Direct Line: +603 2162 7802
For marketing and media enquiries
Govina Selvanthran
Marketing Manager
[email protected]
Direct Line: +603 2162 7800 ext 22
Risk Quantification in Operational Risk
Download Brochure
Date: 4th & 5th December 2018
Venue: Kuala Lumpur
- Operational risk managers & staff
- Group risk management staff
- Risk analysts
- Directors of risk management
- Heads of operational risk management
- CROs
- Enterprise risk managers
- Statistical managers and analysts
- Strategic risk managers
- Business continuity managers
- IT and IT security managers
- Internal auditors
- Internal audit managers
- Compliance officers
- Project managers
- Regulators and supervisory bodies
Early bird : RM3,599
Register before 2nd November 2018
Standard : RM3,999 per delegate
If you are looking for an in-house training program or wish to send a group to an existing public program, kindly please contact Andrew Tebbutt at [email protected] or +603 2162 7802.
Learn More
Kindly complete the registration form and email to [email protected] or fax +603 2162 7810
About The Seminar
With some years of loss data collection now achieved, directors and regulators are expecting more and better use of it. CROs and Operational Risk managers need to upgrade the information and recommendations about risk strategies and about how to allocate resources for best control. OR units need to develop quantitative methods to demonstrate the reports and recommendations are based on fact and data, both from internal loss events and also from data outside the firm and combining it with expert opinion.
Regulators increasingly emphasise that banks should improve knowledge of how they could suffer major losses, and know how best to limit them. Use of quantitative techniques and data has to be greatly increased.
In this course, techniques for improving the quantitative assessment of risks, and especially the potential for the most significant losses, will be presented with worked examples and short practice exercises.
KEY LEARNING OUTCOMES
- Recognize additional quantitative techniques for risk estimation
- Gain confidence is using techniques in estimation
- Improve data for qualitative and quantitative methods
- Enhance the value to directors of the risk assessments and reporting
- Handle data breaks and inconsistencies
- Handle Interrelationships between risks
- Implement growing regulatory requirements and expectations of risk assessment
- Develop techniques for assessing major risks for scenario analysis and stress testing
- Improve Risk Identification and root cause analysis
- Assess control effectiveness
- Improve risk aggregation for Capital Adequacy assessments (Basel requirements)
- Formulate risk reporting through good KRIs and report formats
Seminar Agenda
- The Importance of Risk Quantification
- Value to Directors and Management
- Function in the Risk Management Framework
- Regulatory Requirements for Risk Assessment
- Assessment in Regulation of Banking, Insurance and other Financial Sectors
- The Risk Management Framework
- Importance to Risk Strategy and Risk Management Priorities
- Importance to Risk Reporting
- Risk Identification*
- Compiling a Risk Register with Example
- Understanding Risks and Loss Events
- How Risks can impact on a Firm
- Quantifying Impact and Definition of Loss
- Classification of Risks
- Why the Classification is important – effect on analysis
- Root Cause Analysis
- Control Effectiveness*
- Measuring Control Performance
- Use in Quantitative Risk Assessment
- Worked Example
- Risk and Control Interrelationships – Case Study
- Process Mapping – Worked Example
- Measuring Control Performance
- Risk Assessment *
- Loss Data Base
- Loss Event Data to enable analyses and Action Plans
- Use of Indices for Risks, Controls, Events
- Loss Event Collection
- Importance of Consistency of Recording
- Other Loss Data Sources
- Blending Loss Data from different sources for Risk Assessment
- Use of Inherent and Residual Exposure
- Risk Modelling – Quantitative
- Uses and Purposes of Modelling
- Moments in Probability Distributions
- Using Continuous and Discrete Data
- Loss Distribution Assessment – Frequency and Severity
- Quantifying Risks through Frequency and Severity models
- Curve Fitting
- Handling Data Breaks and Inconsistencies
- Probability Distributions in use
- Relationship of the Nature of the Risk with the Chosen Distribution
- Ease of Use of Different Distributions
- Use of Bayesian methods
- Risk Estimation – Qualitative
- Loss Data Base
- The Risk and Control Assessment Process*
- Building an Assessment Team
- Facilitation Techniques for Risk and Control Assessments
- Role of the Risk Manager
- Major Exposures – Scenario Analysis and /Stress Testing*
- The Tendency to Underestimate the Threat of Severe Events
- Estimating extreme risks
- Application of Stochastic Models
- Alternative approaches
- Impact Estimation of Potential Extreme Events
- Planning Stress Testing, Scenario Analysis
- Risk Aggregation
- Combining Loss Distributions
- Mathematical Methods
- Simulations
- Handling Interrelationships between Risks
- Bayesian Methods
- Decision Science techniques
- Correlations – challenges in estimation
- Validating Correlations
- Useful Software
- Combining Qualitative Risk Assessments
- Combining Loss Distributions
- Linkage to Other Activities in the Risk Management Framework*
- Risk Monitoring – KRIs
- Reporting to Management
- Risk Strategy and Appetite – Worked Example
- Capital Adequacy
* All Topics will be illustrated with real examples. In addition * marks topics that will be supported by Case Studies, Examples, and Practical Exercises.
- Schedule of the Seminar
- 08.30 – 09.00: Registration
- 09.00 – 10.30: Session 1
- 10.30 – 11.00: Coffee Break
- 11.00 – 12.30: Session 2
- 12.30 – 14.00: Lunch & Prayer Break
- 14.00 – 15.30: Session 3
- 15.30 – 16.00: Coffee Break
- 16.00 – 17.30: Session 4
SEMINAR SPEAKER
Edward Sankey
Past Chairman Institute of Operational Risk (UK)
Edward is a managing consultant in corporate and operational risk management in banks and insurance companies. His career has included in addition to the UK, an executive post in New York. His project assignments have also been in South East Asia, mainland Europe, Russia and elsewhere. He had a long assignment as Interim Director and Approved Person by the UK Regulator, Operational Risk and member of the Risk Committee at Santander UK. Edward has previously led risk consulting activities in Marsh Europe (in the Marsh and McLennan group of companies), City Practitioners, AEA Technology/Risk Solutions and KPMG. Projects have been in wholesale markets, retail and corporate banking, insurance, investment management, full range major banks, and for a regulator/supervisor.
They have covered:
- Directing operational risk management including scenario analysis for Directors and Risk Committee
- Upgrading risk management frameworks: information, organisation, and processes
- Assessment and control of strategic and operational risks
- Preparing Basel Capital Adequacy assessments and the Pillar 2 ICAAP Report (UK Capital Adequacy Assessment to the Regulator)
- Enhancing major projects, M&A, outsourcing through risk management
- Training directors, managers and staff in risk management
He is the Past Chairman and a Fellow of the Institute of Operational Risk, the leading professional body focusing on high standards in this risk field. Edward is also an Honorary Life Member of the Institute of Risk Management. He is a member of the City Values Forum set up by the Lord Mayors of London which focuses on organisations’ cultures and individuals’ behaviors.
For enquiries please contact:
Normariya Sariman
Account Manager, REDmoney Seminars
[email protected]
Direct Line: +603 2162 7800 ext 44
Ramesh Kalimuthu
Events Sales Director
[email protected]
Direct Line: +603 2162 7800 ext 65
Fax: +603 2162 7810
For sponsorship & speaking opportunities:
Andrew Tebbutt
Managing Director
[email protected]
Direct Line: +603 2162 7802
For marketing and media enquiries
Govina Selvanthran
Marketing Manager
[email protected]
Direct Line: +603 2162 7800 ext 22