OBJECTIFS :

Flèche rougeAttributes of good risk management and framework, getting business buy in to risk management initiatives, risk identification and assessement, key risks indicators, root cause analysis and influencing risk culture.

PUBLIC CONCERNÉ :

Flèche rougeRisk Function

FORMATEURS :

Flèche rougeDr. Ariane Chapelle is active in operational risk since 2000, with business experience acquired in managerial functions in Internal Audit and Risk Management in ING Group and Lloyds Banking Group. She is a also professional trainer with over 20 years experience in teaching academic and executive audiences. She has designed, managed and run operational risk training programmes for international banks and insurance companies and facilitated hundreds of training sessions on operational risk on every continent.

Dr. Chapelle is Honorary Reader at University College London, teaching the course: “Operational Risk Measurement in Financial Services”. She is a Fellow of the Institute of Operational Risk of which she chairs the Sound Practive Guidance Committee.

FORMATION - Programme

Day One

Session 1: Operational Risk Scope and Framework

First session to discuss the scope of the operational risk function, the framework used in the company to manage risks, what has been achieved and what is left to be done.
Discussions over a maturity model to specify where the company is and what are the objectives ahead in terms of risk management.

Scope of Operational Risk
Losses, near misses, impacts
Benchmark of operational losses to gross income
Attributes of effective risk management
Examples of Operational Risk Frameworks in Banking and Insurance
The ORM pyramid: which level are you at?

Group discussion and sharing of experience around a maturity model of ORM

Session 2: Regulation and Governance of the Risk Function

Regulatory context and regulatory expecations regarding operational risk is there to give a context.
More importantly, the session highlights the do’s and don’ts for managing the relationship with the business and running a value-adding risk function. Based on personal experience and real case studies.

Basel II and III for operational risk: regulatory expectations
Revisions of the Standardized approach
Governance: Three lines of defence
The Invisible Framework
1st line and 2d line of defense: a partnership model (Bupa Global)
Risk management to create value

Case studies

Session 3:  Risk Identification: tools and techniques

A hands-on, practical session giving tools and techniques to risk managers to run effective risk identification workshops with the business.
Risk identification workshops are sometimes neglected, moving straight to risk assessement. The session corrects this damaging short-cut.

Tools and techniques for risk identification: how to run a risk identification workshop with the business
Risk identification using a business language
Exposures and Vulnerabilities
The Risk Wheel
Value Drivers
Reverse stress testing
Risk register and connections between risks

Group work: identify top risks and class feedback, share practices and challenges

Session 4: Effective Risk and Control Self Assessments / ORSA

RCSA in Banking, ORSA in Insurance, they constitute an essential buidling block of the operational risk framework.
Simple in apparence, succesful execution of risk assesment workshop requires method and a common understanding by all parties to produce comparable, useful results.
This session, based on more than a decade in running risk assessments workshops, teaches the essential requirements to risk professionals.

RCSA,  ORSA (Operational Risk Self Assessment)
Definition and rules for ORSAs

Impact / probability matrix, ratings, colours and risk appetite
Methodollogical choices and governance
Definitions and comparability
Running a workshop

Class exercise: running a RCSA

Day Two

Session 1: Preventive Key Risk Indicators

Key Risk indicators are my biggest area of expertise, both in training and consulting.
This session gives an overview of the essential features of preventive KRIs to avoir confusion with a tally of events. It focuses the reflection on the understanding of what causes operational risk events, to improve the preventative nature of KRIs.

Essential features of preventive KRIs
KPI, KRI, KCI? concepts and examples per activity
KRI must address risks, not events: know your risk drivers
Typology of KRIs: Environmental, Stress, Causal and Failure
KRI Design: Frequency - Trigger levels - Escalation criteria – Ownership - Data accuracy
KRI reporting and risk reporting

Class discussion:: current internal practice and existing KRIs

Session 2: Root Cause Analysis for better controls and better KRIs

Root cause analysis is possibly the most powerful tool in risk management. When pushed to its limits, it produces a comprehensive diagnosis of the failures that have led to an incident, opening the way for better controls and preventatives KRIs. It also produces effective lessons to be learnt across the organisation. The “bow-tie” is a well-known tool in the non financial industry for root cause analysis. It proves to be very popular when applied to the financial services. Participants will have a chance to apply it and evaluate its benefits. The session is supplemented by a summary of scientific research on the types and causes of human error, for a better risk mitigation response.

Root Cause Analysis: the bow tie: benefits and applications
Why do we make mistakes?
Typology and causes of human errors
Understand and treat the cause of human error
Prevention by design

Group work: perform a root cause analysis, feedback to the class

Session 3: Risk Appetite Definition, Statement and Communication

One of the roles of the risk function is to assist the Board in the definition of his risk appetite.
Every risk management should be at ease with the concept and know the basic elements of actionable risk appetite and the way to identify them.

Industry guidance on Risk Appetite
Making Risk Apptite actionable
Risk Appetite Statements: Features and Examples
Risk Appetite structure and templates
Definition and Governance: Communicating Risk Appetite
Links with the other parts of the framework

Case Studies & Structured exampels of risk appetite statements, plus class exercise: formulate risk appetite and tolerance statements for one key risk.

Session 4: Influencing Risk Culture

A soft topic for last, as an inspiration for more. Based on a personal adaptation for the Financial Services of The Influencer methodology by Patterson at al. this session highlights the drivers of motivation (personal, social, structural) combined with the necessary condition for action (willingness and ability) to develop key steps influencing organisations towards a better risk culture.

Defining Risk Culture
Acting on behaviours: the Influencer
Necessary conditions: willingness and ability

Risk Culture: DESIRE steps: Define – Inspire – Support – Enable – Reinforce - Evaluate
Assessing risk culture

Case studies and Group work: Plan your own culture change

Conclusion: learning points, takeaways and action plans
What have you learnt?
What will you remember?
What will you apply?

TARIFS:

Flèche rouge2490 euros HT

(prix indicatif variant selon la mise en oeuvre de la formation)

DURÉE :

Flèche rouge2 jours

PRÉREQUIS :

Flèche rougeAucun

TAUX DE SATISFACTION :

Flèche rougeIl n'y a pas encore de taux de satisfaction sur cette formation

prochaines dates

Pour connaitre les prochaines dates, nous contacter : contact@eri-institute.eu