Fundamentals of Operational Risk Management

Monday 3rd April 2017










Operational Risk discipline has developed and moved a long way since the years of being a ‘poor cousin’ of credit and market risk. With continued regulatory focus and catastrophic industry events, Operational Risk has become a crucial topic of the Senior Management’s agenda.

  • Is your Operational Risk department fully up-to-date with the latest tools that are used to identify, assess, monitor and mitigate Operational Risk?
  • Can Senior Management articulate the ‘Top Operational Risks’ of the firm consistently?
  • Are all staff educated and aware of what Operational Risk means and understand their roles and responsibilities in managing Operational Risk?

About this workshop:

Interactive, practical one-day Operational Risk course will leave the delegates with a broad knowledge of how operational risk is defined and distinguished. Participants will gain an understanding of the fundamentals of operational risk in financial services, as well as focus on the core components of the Operational Risk Framework – Losses and Near Misses, Risk and Control Self-Assessments and Key Risk Indicators. Delegates will be also introduced to the challenging subject of Operational Risk Appetite. The course will help the delegates understand why Operational risk remains high on the regulatory agenda, consider Basel Committee guidelines and the regulatory focus.


Who should attend:

This course is aimed at participants keen to have an overview of Operational Risk in one day. It has been designed to appeal to Senior Managers, Audit, Compliance, Fraud and Risk managers who need to have a broad understanding of Operational Risk to perform their role effectively. It is particularly relevant for Operational risk professionals willing to enhance and refresh their knowledge and benchmark their practices with the industry.

Programme (approx from 9am – 5pm)

Session 1:

Defining Operational Risk

  • Objectives for the day and participant’s expectations
  • How to help your employees think about Risk
  • The definition and typology
  • Group Discussion: management and integration of Conduct risk, Cyber, Fraud and other risk types with Operational risk
  • Building and Effective Operational Risk Management Framework

Session 2:

Operational Risk Events (Losses & Near Misses)

  • Definitions and Examples – Losses, Near Misses, Gains
  • Exercise: Are these Operational Risk events?
  • Collection and analysis – process and challenges
  • Basel Committee Loss Data Collection Study
  • Group Work: RBS Case Study

Session 3:

Risk and Control Self-Assessment

  • Various approaches to conducting RCSAs – Process, Strategic, Hybrid
  • Integrating Operational Risk with Business Strategy
  • Risks: Impact and Likelihood, Inherent and Residual
  • Controls: assessment, testing
  • Group Work: identifying and rating ‘Top Risks’

Session 4:

Key Risk Indicators and Introduction to Appetite

  • Key Risk and Key Control Indicators
  • Attributes of good indicators
  • Exercise: practicing in defining the KRI and setting the thresholds
  • Views on Appetite – is there return-on-investment from taking Operational Risk?
  • Group Study: evaluation of Appetite Statements expressed by peer banks

Session 5:

Workshop: The OpRisk Wrap-Up

  • Any remaining questions answered
  • Building an individual Action Plan

PRE Conference Workshop will be run by Helen Pykhova, The OpRisk-London

Workshop cost is £500 plus VAT. If combined with the Fraud Conference 2017 in April, the cost will be reduced to £400 plus VAT. To register please complete registration form or contact us via email at or phone 020 7476 5509 / 078 9410 9603