This course aims to help participants learn how to enhance the operational risk management and resilience capabilities of their organizations. In particular, we focus on how the recent COVID-19 disaster made plain the strategic weaknesses of most organizations insofar as withstanding and responding to surprises.
While the Covid pandemic was, by most accounts, unpredictable, the responses to it varied—often becoming the determining factor in whether an organization survived.
Operational Risk Management & Resilience Course addresses these concerns by making operational risk management a strategic, forward-looking undertaking that aims to constantly position and reposition the organization in light of changing internal and external challenges. This approach breeds resilience.
At the end of this course, the participants will know about:
Identification of emerging risks
Risk networks rather than risk registers
Key elements of counter-terrorism measures and physical security
Implementing ORM: the invisible framework
Must-know about cyber security and threats
How to differentiate and address human errors
How to use root cause analysis most effectively
Influencing behaviors for better control
All best practices in operational risk management for financial companies
Risk Reporting and Conduct reporting
Building a framework for risk culture change
Leading KRIs framework for identification and design
Scenario analysis and assessment
Heads of Operational Risk
Enterprise Risk Managers
Operational Risk Managers
Operations Managers
Internal Auditors
HR officers
Compliance officers
Consultants
Regulators
Course Outline
“Classic” notions and definitions
Modern understanding within COSO and ISO
Post-COVID demands on Operational Risk Management (ORM)
What we can learn from business continuity
Defining resilience
Roadmap for the course
Creating a post-COVID, ORM framework:
Investigating COSO ERM
Risk management must be practically related to performance and KPI management
Risk management involves new definitions, concepts and psychological notions
Risk management must be closely involved with strategy setting and execution
Risk management is not back-office and reactionary, but board-lead, head-office and forward-looking
Creating an infrastructure for analyzing and managing operational threats:
Defining operational events
Managing data:
Centralized management of data and loss events
Decentralized Management of data and loss events
Mixture systems
Database development
Distinguishing between Loss databases and Event databases
Capturing Direct Losses
Indirect losses
Timing issues
Key Risk Indicators (KRIs) and Business environment and internal control factors (BEICFs)
Technical issues (if time permits)
Loss data collection thresholds
Potential fixes to reporting bias
Technical Aspects: Building in Business Continuity
Borrowing techniques from Business Continuity Management
Identifying impacts resulting from disruptions and disaster scenarios
Specifying techniques to quantify impacts
Establishing “criticality” and critical functions
Assessing impacts over time
Recovery Time Objective (RTO) and Recovery Point Objective (RPO)
Maximum tolerable outage (MTO)
Identifying interdependencies
Develop routines, simple rules, and improvisations
Analyze which tools you need to get different work done (or different critical functions up and running)
Question assumptions behind routines
Practice doing more with less
Deepen knowledge of how work fits in with the whole strategy
Investing building expertise
Identify priorities
Learn to give up control
Creating the board-led, governance structure
Chief Risk Officer and ORM head
Risk champions and risk analysts
3 Lines and 4 Lines of Defence models
Defining roles for Board, Risk management, Management Team, Audit and Compliance
Qualitative and Structural Aspects: Risk Culture
Current risk culture must be re-examined
Defining “risk culture”
Importance in ORM
FSB Indicators of risk culture strength
Typical psychological factors in risk culture weakness: biases
Basel Checklist:
Risk culture
Operational Risk Management Framework
Board of directors: implementation of operational risk management
Board of directors: risk appetite
Senior management
Identification and assessment of operational risks
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