Operational Risk Management for Financial Institutions

About The Seminar

Operational risk is inherent in all products, activities, processes and systems, and the effective management of operational risk is a fundamental element of a financial institution’s risk management programme. The control of operational risk is concerned with good management which involves good corporate governance, risk culture, an effective framework of operational risk management policies, processes and systems, and effective and efficient systems of internal controls. This is a value-adding activity which impacts the achievement of organisational objectives, the stability of earnings and bottom line performance. Operational risk also affects an institution’s credit rating, share price and reputation. Therefore, operational risk must be a key consideration for any business.

In the wake of rogue trading scandals, frauds, massive fines imposed by regulators for anti-money laundering breaches and misconduct, cyberattacks, data leakages and the financial and operational impact of extreme weather events, it is widely acknowledged that operational risk is by far the most significant risk faced by financial institutions.

LEARNING OBJECTIVES

This comprehensive course will provide practical working knowledge of the latest operational risk management practices. Learn how to:

Develop an operational risk framework that meets regulatory requirements
Embed and enforce a good risk culture
Implement an operational risk governance model
Develop operational risk appetite statements and embed operational risk tolerance into risk management processes
Identify, assess, treat, monitor and report operational risks
Select effective key risk indictors to monitor operational risks
Collect and classify operational risk event and loss data in accordance with regulatory requirements
Compute operational risk regulatory capital
Assess the effectiveness of your operational risk management framework

Seminar Agenda

Day 1

Session 1
Operational Risk Management Trends and Top Risks – What’s on the horizon

Key drivers of operational risk
Emerging operational risks and market trends
Understanding operational risk causes, events and impact – The Bow Tie Diagram
Operational Risk Taxonomy
Risk connectivity, the relationship between operational risk and other financial and non-financial risks, boundary operational risk events
Class discussion and experience sharing on emerging and rising risks in organisations

Session 2
Operational Risk Management Principles and Framework

Basel Principles for the Sound Management of Operational Risk
Bank Negara Malaysia Requirements on Operational Risk
Business value of Operational Risk Management

Session 3
Risk Culture and conduct

Definition of risk culture
Key elements of a good risk culture
How to embed, monitor and reinforce the desired risk culture
Indicators of good risk culture
Case studies and class discussion on risk culture

Session 4:
Operational Risk Governance

Key elements of an effective operational risk governance model, the Three Lines of Defence
Typical Operational Risk Governance structure, and roles and responsibilities
The interdependence of functional units within a firm as it relates to operational risk management.

Day 2

Session 5
Operational Risk Appetite

Operational risk appetite and operational risk tolerance – the difference
Operational risk appetite statements
Risk assessment criteria, impact and likelihood scales and the risk rating matrix
Embedding operational risk appetite into operational risk management processes
Class exercise and discussion: Define a risk appetite statement for one or two of your top risks

Session 6
The Operational Risk Management Process

Establishing the context
Risk identification
Risk assessment
Risk treatment strategies
Risk monitoring and review
Communication and consultation
Types of controls
Evaluating control effectiveness

Session 7
Risk and Control Self-Assessments (RCSA)

Top down and bottom up approaches for risk
identification and assessment
Deriving business value from RCSAs
Planning and conducting an RCSA
Common issues and challenges; how to overcome them
Class exercise and discussion on RCSA using a sample RCSA template

Session 8
Scenario Analysis

Scenario selection
Planning and conducting a structured scenario assessment workshop
Sample Scenario Template
Issues and challenges

Session 9
Key Risk Indicators (KRI)

How to select good and effective KRIs for monitoring operational risk
Leading and lagging risk indicators
Embedding risk tolerance into KRIs
Process to successfully implement a KRI Framework
Validating KRIs

Day 3

Session 10
Operational Risk Loss/Event Reporting

Regulatory requirements for collecting and classifying operational risk loss and event data
Financial and non-financial losses and costs of operational risk events
Direct and indirect losses
Boundary events – credit risk, market risk, business risk, strategic risk
Key challenges in operational risk loss data collection and strategies to overcome them
Case studies and Class exercises in classifying operational risk events (using Bank Negara ORION requirements)

Session 11
‘Joining the Dots’

Integrating operational risk data outputs and inputs
Validation and back testing of operational risk data
Deploying the ORM framework toolkit throughout the operational risk management cycle

Session 12
Operational Risk Action Plans

Prioritisation of corrective actions
Monitoring and tracking of action plans

Session 13
Operational Risk Capital

Overview of the three approaches for calculating operational risk capital under Basel 2
he Standardised Measurement Approach (SMA) for calculating operational risk capital under Basel 3

Session 14
Operational Risk Reporting

Reporting the operational risk profile to the Operational Risk Committee and Board of Directors
Typical contents of operational risk reports
Risk escalation, risk aggregation
Risk reporting challenges

Session 15
Assessing the Effectiveness of your ORM Framework

Approaches for assessing effectiveness
Indicators of effective embedding of the ORM Framework
Risk escalation, risk aggregation
Framework Maturity

Where & When

Date: 11^th – 13^th March 2019
Venue: Kuala Lumpur, Malaysia

Who Should Attend?

This course is designed to be of most benefit to:

CROs
Heads of Risk Management
Heads of Operational Risk
Operational Risk Managers
Compliance officers
Line managers
Auditors
Regulators & Consultants

Fee

Early bird : RM5,399
Standard : RM5,999 per delegate
2 delegates (5% Discount) : RM5,699 per delegate
3 delegates (15% Discount) : RM5,099 per delegate
4 delegates (20% Discount) : RM4,799 per delegate
5 delegates (30% Discount) : RM4,199 per delegate

In-house/group training

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.
In-House Training Brochure

Manual Registration

Kindly complete the registration form and email to [email protected] or fax +603 2162 7810

For enquiries please contact:

Mathias Sosovele
Account Manager, REDmoney Seminars
[email protected]
Direct Line: +603 2162 7800 ext 25

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 opportunities:

Andrew Tebbutt
Managing Director
[email protected]
Direct Line: +603 2162 7802

For speaking opportunities:

Suhail Sinnalebbe
Senior Events Producer
[email protected]
Direct Line: +603 2162 7800 ext 43

For marketing and media enquiries

Clement Anthony
Marketing Executive
[email protected]
Direct Line: +603 2162 7800 ext 22

Where & When

Date: 11^th – 13^th March 2019
Venue: Kuala Lumpur, Malaysia

Who Should Attend?

This course is designed to be of most benefit to:

CROs
Heads of Risk Management
Heads of Operational Risk
Operational Risk Managers
Compliance officers
Line managers
Auditors
Regulators & Consultants

Fee

In-house/group training

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./p>

Manual Registration

Kindly complete the registration form and email to [email protected] or fax +603 2162 7810

About The Seminar

LEARNING OBJECTIVES

This comprehensive course will provide practical working knowledge of the latest operational risk management practices. Learn how to:

Develop an operational risk framework that meets regulatory requirements
Embed and enforce a good risk culture
Implement an operational risk governance model
Develop operational risk appetite statements and embed operational risk tolerance into risk management processes
Identify, assess, treat, monitor and report operational risks
Select effective key risk indictors to monitor operational risks
Collect and classify operational risk event and loss data in accordance with regulatory requirements
Compute operational risk regulatory capital
Assess the effectiveness of your operational risk management framework

Seminar Agenda

Day 1

Session 1
Operational Risk Management Trends and Top Risks – What’s on the horizon

Key drivers of operational risk
Emerging operational risks and market trends
Understanding operational risk causes, events and impact – The Bow Tie Diagram
Operational Risk Taxonomy
Risk connectivity, the relationship between operational risk and other financial and non-financial risks, boundary operational risk events
Class discussion and experience sharing on emerging and rising risks in organisations

Session 2
Operational Risk Management Principles and Framework

Basel Principles for the Sound Management of Operational Risk
Bank Negara Malaysia Requirements on Operational Risk
Business value of Operational Risk Management

Session 3
Risk Culture and conduct

Definition of risk culture
Key elements of a good risk culture
How to embed, monitor and reinforce the desired risk culture
Indicators of good risk culture
Case studies and class discussion on risk culture

Session 4:
Operational Risk Governance

Key elements of an effective operational risk governance model, the Three Lines of Defence
Typical Operational Risk Governance structure, and roles and responsibilities
The interdependence of functional units within a firm as it relates to operational risk management.

Day 2

Session 5
Operational Risk Appetite

Operational risk appetite and operational risk tolerance – the difference
Operational risk appetite statements
Risk assessment criteria, impact and likelihood scales and the risk rating matrix
Embedding operational risk appetite into operational risk management processes
Class exercise and discussion: Define a risk appetite statement for one or two of your top risks

Session 6
The Operational Risk Management Process

Establishing the context
Risk identification
Risk assessment
Risk treatment strategies
Risk monitoring and review
Communication and consultation
Types of controls
Evaluating control effectiveness

Session 7
Risk and Control Self-Assessments (RCSA)

Top down and bottom up approaches for risk
identification and assessment
Deriving business value from RCSAs
Planning and conducting an RCSA
Common issues and challenges; how to overcome them
Class exercise and discussion on RCSA using a sample RCSA template

Session 8
Scenario Analysis

Scenario selection
Planning and conducting a structured scenario assessment workshop
Sample Scenario Template
Issues and challenges

Session 9
Key Risk Indicators (KRI)

How to select good and effective KRIs for monitoring operational risk
Leading and lagging risk indicators
Embedding risk tolerance into KRIs
Process to successfully implement a KRI Framework
Validating KRIs

Day 3

Session 10
Operational Risk Loss/Event Reporting

Regulatory requirements for collecting and classifying operational risk loss and event data
Financial and non-financial losses and costs of operational risk events
Direct and indirect losses
Boundary events – credit risk, market risk, business risk, strategic risk
Key challenges in operational risk loss data collection and strategies to overcome them
Case studies and Class exercises in classifying operational risk events (using Bank Negara ORION requirements)

Session 11
‘Joining the Dots’

Integrating operational risk data outputs and inputs
Validation and back testing of operational risk data
Deploying the ORM framework toolkit throughout the operational risk management cycle

Session 12
Operational Risk Action Plans

Prioritisation of corrective actions
Monitoring and tracking of action plans

Session 13
Operational Risk Capital

Overview of the three approaches for calculating operational risk capital under Basel 2
he Standardised Measurement Approach (SMA) for calculating operational risk capital under Basel 3

Session 14
Operational Risk Reporting

Reporting the operational risk profile to the Operational Risk Committee and Board of Directors
Typical contents of operational risk reports
Risk escalation, risk aggregation
Risk reporting challenges

Session 15
Assessing the Effectiveness of your ORM Framework

Approaches for assessing effectiveness
Indicators of effective embedding of the ORM Framework
Risk escalation, risk aggregation
Framework Maturity

Seminar Speaker

Patricia Jalleh
Founder and CEO
(Enterprise Risk Associates,
Singapore)

Patricia Jalleh is the Founder and CEO of Enterprise Risk Associates, a boutique risk training and consultancy firm based in Singapore. She is a leading practitioner and expert in the operational risk industry and was recognised as one of the “Top 50 Faces for Operational Risk” by the Operational Risk & Compliance Magazine in January 2009. She has more than 25 years of experience in the financial services industry working in the fields of internal audit, technology, operations, operational risk management and risk strategy. She has held several leadership roles, including Executive Director for Risk Strategy and Group Head of Operational Risk Management at United Overseas Bank, Vice President of Operational Risk for Technology & Operations at DBS Bank, and Head of Operational Risk for Group Consumer Bank and Internal Audit Manager at Standard Chartered Bank.

Patricia has extensive experience in implementing operational risk management frameworks, policies, systems, tools and processes from the ground up, having pioneered the operational risk management function for a bank in 1996. At another bank, she was a lead member of their operational risk task force set up to develop and roll out an operational risk management framework within the Group. She has experience in training and building up ORM teams at new or merged bank subsidiaries. In 2009, she was instrumental in her bank achieving the QFC-Asian Banker Achievement Award for Risk Management.

Patricia’s expertise includes design and development of operational risk management frameworks, risk governance, risk appetite, policies, event/loss databases, internal controls, risk and control self-assessments, key risk indicators, scenario analysis and risk reporting. She has also developed frameworks for addressing new product and initiatives risk, business continuity risk, outsourcing risk and reputation risk.

She was the Chairman of the ASEAN Banking Association Sub-committee for Operational Risk (2007 – 2010), Chairman of the Operational Risk Management Task Force of the Association of Banks in Singapore (ABS) and member of the Risk Management Standing Committee of the ABS (2006 – 2010). She was a member of the Singapore Financial Industry Competency Standards Risk Management Advisory Panel and the Risk Management Working Group (2006 - 2011).

Patricia has delivered numerous presentations and trainings across Asia (Singapore, Malaysia, Hong Kong, Thailand, Indonesia, Philippines, Brunei, Taiwan, China, Vietnam, Cambodia). She is a trainer for the National University of Singapore Risk Management Institute (NUS-RMI) Specialist Diploma in Operational Risk Management and the Singapore Institute of Banking & Finance Certification in Operational Risk Management. She is also a trainer for the ISO 31000 Risk Management Standard and the GARP FRM (Financial Risk Manager) program.

Patricia is a Fellow of the Chartered Association of Certified Accountants, UK and a Certified Information Systems Auditor (CISA).

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Booking, Payment and Cancellation Policy

By completing, signing and sending us this registration form you are confirming delegate places on the seminar. You are also confi rming your understanding of our Booking, Payment and Cancellation Policy.

Cancellation: If delegates cannot attend the seminar replacement participants are always welcome. Otherwise delegates must request in writing (letter, fax or email) to cancel registration/s or transfer to a diff erent seminar at least 21 days before the seminar start date to be eligible for a refund, less a 5% administration fee. Delegates who cancel within 21 days of the seminar start date, or who do not attend, are liable to pay the full seminar fee and no refunds will be given. Instead fees will be converted to a IFN Seminars voucher equivalent to the original fee, less a 15% administration charge. This voucher is transferable within your organization and must be redeemed within one year of issue or become void. If a seminar is postponed for whatever reason delegate bookings will be automatically transferred to the new seminar date. Delegates who wish to transfer to a diff erent seminar will be subject to the same terms as above and charged the diff erence in seminar fees. No refunds or seminar vouchers will be issued for a no-show. Payment Terms: All seminars fees are to be received within 14 days of invoice date. REDmoney shall receive the full seminar fee with no deductions of any description. All telegraphic transfer fees, taxes and levies (domestic or otherwise) shall be borne by the sponsoring organization.

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For enquiries please contact:

Mathias Sosovele
Account Manager, REDmoney Seminars
[email protected]
Direct Line: +603 2162 7800 ext 25

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 opportunities:

Andrew Tebbutt
Managing Director
[email protected]
Direct Line: +603 2162 7802

For speaking opportunities:

Suhail Sinnalebbe
Senior Events Producer
[email protected]
Direct Line: +603 2162 7800 ext 43

For marketing and media enquiries

Clement Anthony
Marketing Executive
[email protected]
Direct Line: +603 2162 7800 ext 22