COURSE CONTENTS

1. UNDERSTANDING WHAT OPERATIONAL RISK MANAGEMENT IS ALL ABOUT
• Operational risk management is both art and science
• Why operational risk management exists?
• Operational risk management set up of old versus today’s set up
  
2. OPERATIONAL RISK MANAGEMENT FUNDAMENTALS
• The sine qua non for operational risk management
• The cornerstones of operational risk management
• Operational risk management philosophy
• Operational risk management policy
• Operational risk management framework, guide, procedures, processes
  
3. MEASURING OPERATIONAL RISKS
• You cannot manage what you can’t measure
• Quantitative and qualitative model and concept
• Using the “ERiC” model to measure and categorise or grade your operational risk
• Know your proxy
• Linking proxy with risk loss tolerance limits, risk philosophy and risk policy
  
4. GRADING AND REPORTING YOUR OPERATIONAL RISK
• Grading your operational risk to high, medium, low risk categories
• Mapping your operational risk heat map or operational risk dashboard
• Reporting your operational risk
• Using your operational risk heat map or risk dashboard as your management tool
  
5. NOWING THE CORNERSTONES OF OPERATIONAL RISK MANAGEMENT
• Operational risk mgt philosophy
• Operational risk policy
• Operational risk culture
• Operational risk framework
• Roles of each and sundry
• People and human resources
• Reporting hierarchy
• Importance of conducive operational risk mgt environment, awareness, and organizational culture

6. THE 4 DRIVERS OF OPERATIONAL RISK
• Failure or inadequate/lack of internal control
• Failure or inadequate/lack of systems
• Failure or inadequate/lack of effective processes
• The dynamics of people as a driver of operational risk
   
7. OPERATIONAL RISK CONCERNS AND IMPACTS
• Meaning or significance of operational risk on its own
• Operational risk impact is the critical part
• What inherent operational risk is?
• Manage your inherent operational risk
• What residual operational risk is?
• Treat or address your residual operational risk

8. MINDFUL OF OTHER INTER-RELATED RISK GROUPS OR DOMAINS OTHER THAN OPERATIONAL RISK
• The concept of today’s EWRM or enterprise-wide risk management
• The four risk groupings
• Credit risk management
• Market & treasury risk management
• IT/IS or systems risk management
• Operational risk management
• Other domains
  
9. KNOWING OPERATIONAL RISK MITIGANTS
• What operational risk mitigant is
• Are operational risk mitigant and control one and the same?
• Mitigants for operational risk

10. TOOLS TO MANAGE OPERATIONAL RISKS
• Management controls as a way to address and mitigate operational risk
• Addressing financial losses
• Proactive operational risk management
• Operational risk heat-maps, trends, and operational risk dash-boards
• Managing people to mitigate operational risk
• Key risk indicators and near misses reports. 

11. OPERATIONAL RISK MANAGEMENT AND TODAY’S HYPE IN CORPORATE MANAGEMENT
• Directors role
• Expectation of senior management
• The welfare, resilience and continuity of organization
• Collapse of many MNCs due to inadequate or weak operational risk mgt prompted regulator’s harsh stand
• Corporate governance starts with people governance
• Bottom line is organizational chaos if operational risk not adequately managed
  
12. OPERATIONAL RISK MANAGEMENT...NEW OR HAS ALWAYS BEEN PART OF MGT’S CONCERN?
• Operational risk management function has been around since business era
• More hype today for operational risk because of past corporate failures
• Differences in conducting today’s business today versus tomorrow’s
  
13. FOCAL OPERATIONAL RISK IN ANY ORGANISATION NON-COMPLIANCE WITH REGULATORY REQUIREMENTS IS A MAJOR ISSUE
  
14. PAST GLOBAL AND LOCAL EXAMPLES, WAR STORIES, LESSONS LEARNT, AND SHARINGS OF OFFICE EXPERIENCES
  
15. GROUP EXERCISES/QUIZZES TO PARTLY TEST ON PARTICIPANTS’ UNDERSTANDING OF THE SUBJECT  MATTER

16. IS OPERATIONAL RISK MANAGEMENT (ORM) DIFFICULT?
• Operational risk mgt or ORM is a function of management
• ORM is a process in any business/non-business, and operational activities
• Ensuring quality and right product or service
• Doing things right (efficiency) as well as doing the ‘right thing’ (effectiveness)
  
17. YOUR TYPICAL OPERATIONAL RISK MANAGEMENT FRAMEWORK DOCUMENTATION
• Operational risk policy
• Operational risk awareness and identification
• Operational risk assessment or evaluation
• Operational risk measurement or quantification
• Operational risk treatment and control
• Operational risk monitoring and compliance
• Operation risk follow up and reporting
• Operational risk review and re-assessment of operational risk mgt policy and ORM framework
  
18. OUTCOME WHEN YOUR OPERATIONAL RISK MANAGEMENT STRUCTURE FAILED
• Inadequate or poor corporate governance
• Financial losses
• Non-financial losses
• Regulatory sanction
  
19. ISSUES IN OPERATIONAL RISK MANAGEMENT
• Financial and non financial losses
• Inadequate or failed internal controls and processes
• People risk
• Systems risk
• External event and business environment
• Business continuity  (BCP)
• Terrorist threat and money laundering operations
• Crisis and disaster management, organizational resilience
• IT / IS risk issues
• Operational risk issues of people, process, systems and external events or business environment
  
20. GROUP EXERCISES, QUIZES, TESTING UNDERSTANDING OF OPERATIONAL RISK MGT
  
21. SHORT SNAPSHOTS OR CONTEMPORARY ESSAYS ON RISK MANAGEMENT
• In union with risk
• Cornerstones for credible risk management
• Instilling risk management culture as an element of an organisation’s corporate governance
• Key risk issues and fundamentals
• Conceptualising operational risk management tools and dashboard (risk matrices)
• Insights into operational risk and work culture in an organization
• The hype of today’s risk management vis-à-vis corporate governance and business ethics

22. CONCEPTS IN RISK MANAGEMENT