Introduction:
　　Operational risk has been defined as the risk of direct or indirect loss resulting from inadequate or failed internal processes, people, and systems or from external events. It has been always inherent in business and financial enterprises. The biggest risk in risk management is not seeing the risk!

　　Operational risk addresses an entirely different business problem and should be managed first strategically, then tactically. Managing such risk is becoming an important feature of sound risk management practice in modern financial markets. The most important types of operational risk involve breakdowns in internal controls and corporate governance. But it can be managed through a framework of policies, processes and procedures by which business units identify, assess, monitor and control/mitigate their operational risks.

　　The training traces some of the drivers and milestones in the development of operational risk management. The risk dimensions of frequency and severity are explained, and the implications for risk mitigation and control are discussed during the course. And this is also an opportunity for participants to get hands-on experience handling operational risk procedures.

　　Topics Will be Covered:
　　▼What are operational risk and its regulatory framework?
　　 √Define operational risk and understand it relative to other risk types
　　 √Identify broad categories of operational risk
　　 √Analyze several operational risk incident case studies
　　 √Describe the operational risk regulatory landscape
　　 √Outline the operational risk regulatory framework
　　 √Understand sound practices as defined by international regulators

　　▼Implementing operational risk management and its benefit
　　 √Challenges in risk management
　　 √Standards and Best Practices
　　 √Approach and Methodology
　　 √Experience shared
　　 √Key Success Factors
　　 √Benefits of risk management

　　▼Developing operational risk management awareness
　　 √Objectives of operational risk management
　　 √Responsibilities
　　 √Developing a risk awareness culture
　　 √Developing operational risk management procedures
　　 √Operational risk management techniques
　　 √Self assessment
　　 √Allocating operational risk costs

　　▼Designing and building a better operational risk environment
　　 √Longer-term - integration and rationalization
　　 √Process re-engineering and streamlining processes
　　 √Removing duplication
　　 √STP projects
　　 √Systems design and end-user considerations
　　 √Single back office and front office
　　 √Overcoming resistance and introducing training strategies
　　 √Project planning, budgeting and communications
　　 √Assigning responsibility for risk policy

　　▼Analyzing specific risks of risk management
　　 √Technology
　　 √Systems failure
　　 √Programming errors
　　 √Telecoms
　　 √People
　　 √Incompetence
　　 √Fraud
　　 √Process
　　 √Execution error
　　 √Booking error
　　 √Transaction and mis-matching of trades

　　▼Basic components of operational risk management process
　　 √Risk identification-understanding the risk exposure of an organization
　　 √Risk evaluation- assessing and measuring of the identified risk exposures
　　 √Risk control-formulate control measures to prevent the risk event from happening
　　 √Risk financing
　　 √Risk monitoring- ensures the effectiveness of the risk management system

　　▼Managing and implementing the operational risk management policy
　　 √Building risk awareness culture
　　 √Building consensus on risk allocation policies
　　 √Building sense of responsibility for risk reduction
　　 √Overcoming resistance to change and establishing clear, straight-through communication channels
　　 √Corporate governance

　　▼Identifying and Tackling Line Management Issues
　　 √Assessing the level of senior management buy-in to operational risk solutions
　　 √Understanding reporting lines and roles/ responsibilities
　　 √Implementing effective management control
　　 √Empowerment and staff control