Certified Operational Risk Management (ORM)

This course will show delegates how the correct mix of philosophical and operational elements combine together to ensure success. It provides a simple structure for control and automatic mechanisms for detection and resolution of problems, using an evolutionary approach. A series of real life case studies vividly illustrate where problems originate and how they can be solved in a simple systematic way. They are delivered using a participative and highly interactive style of delivery by mature practitioners with many years of successful experience of risk control, in a wide range of activities.

• A systematic approach to the control of all operational risks within an ERM culture
• A pre-emptive control strategy providing the ability to identify, monitor and control those key areas of exposure
• The skills to analyze, manage and measure operational risk using best practice techniques in line with latest BIS / Basel requirements
• Ability to detect and control the potential for fraud and manipulation
• The tools to protect their institution against a “rogue trader”
• An introduction to the latest responsibility management philosophy and practice which will create the correct environment for high quality, risk mitigation and success
• An understanding and definition of the emerging/evolving role of today’s CRO and other risk departments
• The core management skills that will ensure an effective operations team that is informed, motivated and delivers the highest quality functionality and risk mitigation

• Operations Managers
• Accountants and Consultants
• Middle Office and Risk Managers
• Senior and Middle Management who are concerned about risk practitioners
• Financial and Product Control Staff
• Treasury Managers
• Auditors and Internal Control Officers
• IT and EDP Operatives
• Regulators
• Compliance Staff
• Accountants and Consultants

The Course will define the real elements of Operational Risk and introduce delegates to the value of a quality environment and the need for a sound and responsible management philosophy to acquire true Operation Risk Management.

The Role of Quality in Mitigating Risk
• Achieving first time quality
• Optimum control / over control
• Setting standards of quality
• Design and conformance analysis
• Cause and effect analysis
• Cost effectiveness
• Continuity
• Visibility
• The management of quality
• Measurement of quality

Operational Risk Management Mechanisms
The Role of Today’s Middle Office in Mitigating Risk
• Middle office functionality clearly explained
• The Middle Office as the catalyst for control
• Its scope and responsibilities
• Organization and structure
• Definition and mandate
• Establishing a middle office
• Group discussions and examples of highly effective middle offices

Implementing an Operational Risk Management Framework within an “Enterprise Risk Management” Structure
The BIS/Basel III Accord as it Relates to Operational Risk
• Key points in new Basel Capital Accord
• Discussion on the implications for Risk Managers

Risk Framework Requirements
• Philosophy and policy
• Structure and reporting
• Risk profiling
• Treatment and optimization
• Monitor and learn
• Measure the performance of the framework
• Risk appetite and governance

Building an Operational Risk Scoring Process
• Review of the major types of operational risks
• Measurement frameworks
• Scoring approaches
• Critical success factors
• How to collect accurate event data
• Mapping
• Assess impact and probability of each risk event
• Measure the effectiveness of controls

Using Risk Indicators: The Role and Purpose
• Examples: KRI, KPI, KCI – historical and predictive and current view
• Identification and prioritisation of key risk factors
• Establishing a risk hierachy
• Detecting / analyzing
• Controlling risk elements
• Examples of risks which threaten objectives
• Critical success factors
• Analysing symptoms of poor performance
• Risks by process and tolerances

Meeting the Central Banks Requirements for BIS Basel Accord

Evolution and Implications for Risk Managers and Internal Audit

Initial Examination fee: US$ 495.00

Three yearly renewal fee: US$ 250.00


Examinations