

Financial Institutions Operational Risk Management
Overview:
Introduction:
Operational risk management in financial institutions focuses on identifying, assessing, and mitigating risks arising from internal processes, systems, human errors, or external events. It is a critical factor for ensuring the stability, efficiency, and resilience of financial operations while complying with regulatory standards. This training program provides participants with the skills and frameworks to manage operational risks effectively, safeguarding the integrity of financial institutions.
Program Objectives:
By the end of this program, participants will be able to:
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Identify the sources and types of operational risks in financial institutions.
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Develop and utilize operational risk management frameworks.
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Assess and prioritize risks to mitigate potential impacts.
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Monitor and report operational risks effectively to stakeholders.
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Align risk management strategies with regulatory compliance requirements.
Targeted Audience:
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Risk management professionals.
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Compliance officers and internal auditors.
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Financial operations managers.
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Banking professionals involved in risk assessment.
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Executives overseeing risk and governance in financial institutions.
Program Outline:
Unit 1:
Operational Risks in Financial Institutions:
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Definition and scope of operational risks.
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Types of operational risks: process, system, human, and external events.
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Key factors contributing to operational risks in financial institutions.
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The impact of operational risks on financial performance and reputation.
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Regulatory requirements and guidelines for operational risk management: Basel II and Basel III.
Unit 2:
Operational Risk Management Frameworks:
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Components of an effective operational risk management framework.
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Processes involved in establishing risk governance and accountability structures.
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Methods for developing risk appetite and tolerance levels for institutions.
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Importance of aligning risk management frameworks with organizational goals.
Unit 3:
Risk Assessment and Mitigation Strategies:
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Techniques for identifying and assessing operational risks.
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Frameworks of conducting risk and control self-assessments (RCSAs).
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How to implement key risk indicators (KRIs) to monitor vulnerabilities.
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Processes involved in developing and applying mitigation strategies to reduce risk impact.
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Principles of Leveraging scenario analysis to prepare for potential risks.
Unit 4:
Monitoring, Reporting, and Incident Management:
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Importance of building systems for real-time risk monitoring.
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Techniques for effective operational risk reporting to stakeholders.
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Handling and documenting risk incidents and near misses.
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Methods of developing incident response and recovery plans.
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Enhancing transparency through regular reporting and audits.
Unit 5:
Regulatory Compliance and Future Trends:
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Overview of key regulatory standards for operational risk management.
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Ensuring compliance with Basel III and local regulations.
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Adapting to technological advancements and emerging risks: cyber risks.
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Importance of Leveraging AI and data analytics in operational risk management.
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Preparing for evolving regulatory requirements and market challenges.