Introduction

Operational risk is one of the most significant challenges faced by financial institutions, encompassing risks such as fraud, cybersecurity threats, process failures, and regulatory non-compliance. Effective operational risk management (ORM) is essential to safeguard financial stability, maintain trust, and meet regulatory requirements. This training course equips participants with advanced tools and frameworks to identify, assess, monitor, and mitigate operational risks. Participants will learn how to align ORM with business objectives, enhance resilience, and comply with industry standards.

Course Objectives

By the end of this course, participants will be able to:

1. Understand the principles and importance of operational risk management in financial institutions.
2. Identify, assess, and prioritize operational risks using advanced methodologies.
3. Develop and implement robust ORM frameworks, policies, and procedures.
4. Monitor and report operational risks using key risk indicators (KRIs) and dashboards.
5. Address emerging operational risks, including cybersecurity threats and regulatory changes.
6. Comply with industry standards such as Basel III, ISO 31000, and COSO.

Who Should Attend?

This course is ideal for:

• Risk management professionals in financial institutions.
• Compliance officers and governance professionals.
• Internal auditors and fraud investigators.
• Financial controllers and operational managers.
• Consultants and advisors specializing in risk management.
• Business leaders and executives overseeing operational risk frameworks.

5-Day Training Outline

Day 1: Introduction to Operational Risk Management (ORM)

• Understanding Operational Risks: Definitions and Categories.
• Importance of ORM in Financial Institutions.
• Overview of ORM Frameworks: Basel III, ISO 31000, and COSO.
• Case Study: Major Operational Risk Failures in Financial Institutions.

Day 2: Identifying and Assessing Operational Risks

• Risk Identification Techniques: Risk Mapping, Root Cause Analysis, and Event Data Analysis.
• Qualitative and Quantitative Risk Assessment Tools.
• Conducting Risk Assessments for Key Operational Areas (e.g., Credit, Treasury, and IT).
• Workshop: Conducting an Operational Risk Assessment for a Simulated Bank.

Day 3: Designing and Implementing ORM Frameworks

• Developing Operational Risk Policies and Procedures.
• Implementing Risk Control Self-Assessments (RCSAs).
• Establishing Key Risk Indicators (KRIs) and Risk Appetite Frameworks.
• Practical Exercise: Designing an ORM Framework for a Financial Institution.

Day 4: Monitoring, Reporting, and Incident Management

• Real-Time Monitoring of Operational Risks with Dashboards and Automation Tools.
• Incident Reporting and Root Cause Analysis for Operational Failures.
• Reporting Operational Risks to Stakeholders and Regulators.
• Role-Playing Activity: Preparing and Presenting an Operational Risk Report.

Day 5: Emerging Trends and Best Practices in ORM

• Addressing Emerging Risks: Cybersecurity, Digital Transformation, and ESG Risks.
• Leveraging Technology for ORM: AI, Blockchain, and Data Analytics.
• Building an Operational Risk-Aware Culture Across the Organization.
• Capstone Activity: Developing a Comprehensive ORM Plan for a Case Study Financial Institution.

Course Outcome

Participants will leave this training course with the skills and knowledge to implement and enhance operational risk management frameworks in financial institutions. They will gain practical tools for identifying and mitigating risks, monitoring performance, and ensuring compliance with industry standards. This training prepares professionals to safeguard their organizations, foster trust, and support long-term resilience in a rapidly evolving financial landscape.