Operational Risk Masterclass

Operational risk is a critical pillar of enterprise risk management that directly influences an organization’s ability to achieve its strategic objectives. It arises from failures in processes, systems, people, or external events and poses significant challenges to business continuity and performance.

This masterclass provides a comprehensive and practical approach to understanding operational risk, emphasizing proactive identification, assessment, and mitigation strategies. Participants will learn how to embed operational risk management into daily business activities, fostering a resilient risk culture aligned with regulatory requirements and organizational goals.

Overview

Target Audience

This masterclass is designed for:

• Operational risk managers and risk management professionals

• Compliance and internal audit specialists

• Senior executives and board members responsible for risk oversight

• Business managers and process owners

• Governance, risk, and compliance (GRC) officers

• Consultants and advisors specializing in operational risk management

Detailed Course Schedule

Day 1: Foundations and Governance of Operational Risk

• Session 1: Fundamentals of Operational Risk Management

  • Definition and scope

  • Importance and characteristics of operational risk

  • Relationship with other risk types

  • Operational risk framework and roles

  • Risk management cycle

• Session 2: Regulatory Treatment of Operational Risk

  • Key regulatory influences

  • Evolving regulatory and supervisory approaches

  • Principles for sound operational risk management

  • Regulatory focus on operational risk categories

• Session 3: Management of Operational Risk

  • Components of risk governance framework

  • Roles and responsibilities of operational risk functions

  • Stakeholder needs and expectations

• Session 4: Governance and Culture

  • Governance requirements

  • Defining and fostering positive risk culture

  • Operational risk policies

  • Driving cultural change for effective risk management

• Session 5: Risk Management Framework

  • Purpose and communication of frameworks

  • Overview of COSO ERM and ISO 31000:2018

  • The Risk House concept

Day 2: Tools, Appetite, Reporting and Practical Application

• Session 6: Operational Risk Management Tools and Techniques

  • Risk categorization

  • Risk and Control Self-Assessment (RCSA)

  • Issues and action plan management

  • Incident and loss event management

• Session 7: Operational Risk Appetite

  • Concept of risk appetite

  • Framework principles and elements

  • Distinguishing risk capacity, appetite, and tolerance

  • Process for setting risk appetite

  • Role of appetite in organizational culture

• Session 8: Key Risk Indicators (KRIs)

  • Role and purpose of KRIs

  • Nature and usage

  • Challenges in implementation

• Session 9: Operational Risk Reporting

  • Audience and reporting requirements

  • Content and timing of reports

  • Deriving value from reporting

• Session 10: Case Studies and Team Exercises

  • Barings Bank, BCCI, Societe Generale, HSBC, ING Australia, GOLD AE

  • Group exercises on operational risk and control assessment

  • Application of operational risk assessment to banking products

2 Days Masterclass - CPD Certified Course - By KYR Consulting | Training | Advisory

Key Takeaways

After completing this masterclass, participants will:

• Grasp operational risk definitions, scope, and its relationship with other risk types

• Understand regulatory expectations and evolving supervisory approaches

• Recognize governance structures, roles, and responsibilities in operational risk management

• Appreciate the role of organizational culture and its impact on risk management effectiveness

• Learn to apply operational risk appetite frameworks and articulate risk tolerance

• Use operational risk tools to monitor, assess, and report risks proactively

• Analyze real-world operational risk case studies and derive lessons for practical application

By attending this course, delegates will be able to:

• Understand the fundamental concepts and practical applications of operational risk management

• Build and implement a robust operational risk management framework

• Comprehend the regulatory and governance aspects surrounding operational risk

• Leverage operational risk to drive business value and informed decision-making

• Utilize key operational risk tools including KRIs, RCSA, incident, and loss data management

• Gain actionable insights to improve internal controls and enhance risk culture within the organization

Key Learning Objectives