Fundamentals of Operational Risk Management

Improve the existing knowledge, as well as to promote the development of new skills on the basics of operational risk management, its measurement methodologies, accounting of operational risk events, identification and analysis of causes, creation of an effective risk indicators (KRI) system, application of risk information for the analysis of the organization’s risk profile.

Specialists who are active in the field of operational risk management:

• financial controllers;
• operations and technology managers;
• project managers;
• company compliance officers and legal affairs specialists;
• auditors.

• Understand the role and importance of risk management;
• Describing the elements of the operational risk management framework and choosing the most relevant ones to apply them in practice in your organization;
• Create and manage an operational risk assessment program and apply it in your workplace;
• Develop a framework of risk indicators (Key Risk Indicators – KRIs);
• Understand how operational risk management can support the business as a whole.

Practical experience in risk management is optional.

Training materials prepared by BDA.

Not intended.

The role of risk management in the organization Introduction

Principles of risk management:

• Roles Risk management process.

Practical work

Risk management framework:

• Risk capacity;
• Risk appetite and profile;
• Risk policy;
• Risk culture.

Practical work

Identification and characterization of sources of operational risk, differences from other types of risks Operational risk:

• Definition;
• Taxonomy – risk factors, operational risk types, interaction of risk types.

Practical seminar

Operational risk management (ORV) tools

Operational risk management framework:

• ORV tools.

Practical seminar

Operational risk assessment program and its application in practice

Operational risk event information:

• Expected and unplanned losses;
• Investigation of risk events;
• Database of risk events.

Practical seminar

Risk and Control Self-Assessment Process:

• Functional vs. process approach;
• Top-down and Bottom-up approaches;
• Inherent and residual risk;
• Risk assessment for new products; Risk assessment for third party services.

Practical seminar

The main principles in creating a framework of risk indicators (KRIs)

• Key Risk Indicators (KRIs);
• External damage data.

Practical seminar

Operational risk quantitative assessment methods and creation of operational risk reports

Quantitative assessment of operational risk:

• Capital for operational risk and its quantitative assessment;
• Capital reserve.

Risk reviews and escalation of risk information.

Practical seminar

Knowledge assessment test.