Certified Operational Risk Professional (CORP): Operational Risk - Measurement, Management, and Mitigation

Introduction

Operational risk, defined by the Basel Accord as "the risk of loss resulting from inadequate or failed internal processes, people and systems or from external events," is a critical area of focus for financial institutions. It impacts nearly every aspect of financial services, making its management essential for the stability and integrity of the banking sector. This 20-hour program is designed to equip participants with a thorough understanding of operational risk, the frameworks for managing it, and the tools needed to effectively measure and mitigate these risks.

Course Objectives

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

- Define operational risk in line with industry standards.

- Identify and categorize the different sources of operational risk.

- Assess the impact of various operational risks on financial institutions.

- Apply quantitative and qualitative methods to measure and manage operational risk.

- Develop strategies to mitigate operational risk and enhance business continuity.

- Understand the regulatory requirements related to operational risk.

Who Should Take This Course?

This course is ideal for:

- Risk management professionals in financial institutions.

- Operational risk officers and analysts.

- Compliance officers and internal auditors.

- Bank managers and executives.

- Professionals involved in governance, risk, and compliance (GRC).

- Anyone looking to deepen their knowledge of operational risk management.

Program Outline

Module 1: Foundations of Operational Risk Management

- Introduction to Operational Risk

  - Definition and Importance of Operational Risk

  - The Basel Accord and Operational Risk Requirements

- The Benefits of Effective Operational Risk Management

- The Operational Risk Management Framework

- The Six-Step Operational Risk Management Cycle

- Enterprise Risk Management (ERM) and its Integration with Operational Risk

- Risk Identification Processes and Techniques

- Overview of Risk Management Principles and Standards

- Risk Assessment: Approaches and Best Practices

Module 2: Risk Management Methods

- Challenges in Operational Risk Management

- Integrating Operational Risk Management into Corporate Structure

- Probability and Statistics in Operational Risk Analysis

- Risk Modeling Techniques

  - Overview of Risk Models

  - Application of Advanced Statistical Tools

- Failure Modes and Effects Analysis (FMEA)

- Measuring Operational Risk

  - Key Risk Indicators (KRIs)

  - Risk Maturity Levels and Setting Risk Appetite

- Risk Response Strategies

  - Risk Avoidance, Reduction, Sharing, and Acceptance

Module 3: Risk Governance

- Implementing Risk Controls

  - Developing and Monitoring Key Risk Indicators (KRIs)

- Qualitative vs. Quantitative Risk Analysis

- Defining and Executing Risk Actions

- Conducting Risk Reviews

- Risk Governance Framework

  - The Three Lines of Defense Model

  - Roles and Responsibilities in Risk Management

- Documentation and Reporting for Operational Risk

- Project Risk Management: Integrating Risk Considerations in Projects

Module 4: Implementing Operational Risk Management

- Overcoming Common Hurdles in Risk Management Implementation

- Communicating Risk Management Objectives and Strategies

- Setting a Clear Risk Management Vision

- Ensuring Stakeholder Ownership of Risk Management Processes

- Building and Sustaining a Risk Management Culture

- Comparative International Attitudes toward Risk Management

- Practical Steps to Embed Operational Risk Management in Organizations

Module 5: Integrating Risk Management into Business Operations

- Leveraging Web-Based Risk Management Tools

  - Overview of Available Tools and Their Applications

- Integrating Risk Management into Day-to-Day Operations

  - Linking Operational Risk with Strategic Business Goals

- Best Practices for Successful Operational Risk Management

- Review of Key Learnings and Takeaways from the Course

- Personal Action Planning: Applying Course Insights to Your Role

Program Details

- Duration: 20 hours, delivered over 4-5 days

- Delivery Mode: Online/Onsite

- Materials: Course slides, case studies, and supplementary reading materials

- Certification: Participants who complete the course will receive the Certified Operational Risk Professional (CORP) certificate.

- Assessment: Continuous assessment through quizzes, case studies, and a final project.

This program ensures that participants develop a deep understanding of operational risk and its management, enabling them to implement effective risk strategies within their organizations.