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PECB Certified Operational Risk Manager

22 - 24 November 2021

Another training course, which includes modules on KRIs and risk appetite, and is PECB Certified will be delivered in Autumn 2021.

ORM Certification course

Additional Information

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We will be happy to answer any queries regarding our training portfolio. We also offer bespoke training to cater to specific organisational needs.

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Programme Overview

Programme Overview

 

Risk Appetite is a fundamental element of a consistent entreprise risk management framework, driving firms to set risk exposure limits, diversification, risk mitigation and monitoring to contain risks and their possible adverse events within tolerable limits, while allowing for necessary risk taking.

Preventive key risk indicators (KRIs) signal increases in risks before incidents occur. It is possible to design preventative KRIs, provided that organisations understand their risk drivers and are willing to take a renewed look at their reporting practice on performance and controls.

Through a combination of presentations and practical exercises, this Masterclass offers a full review of the role and attributes of risk appetite (both for financial and non financial risks) and KRIs in the financial services and banks in particular. It clarifies some confusing ideas about KRIs and offers insight on their role in a risk management framework.

The course also reviews many examples of the best performing KRIs in banking and financial markets activities and proposes a step by step methodology to select and design preventive KRIs. Finally, some risk-specific sections of the course include KRI for credit risk, project management and conduct.

Course Highlights

  • Provide a comprehensive overview of indicators
  • Understand step by step how to select preventive KRIs
  • Discuss process mapping and control design
  • Apply KRI set to specific risks such as credit risk and project management
  • Review indicators for risk culture and conduct
  • Use KRIs as performance management tools

Learning Outcomes

  • Design consistent risk management framework, top-down from risk appetite
  • Describe risk appetite statements from bottom-up observations of risks and controls
  • Specify relevant indicators for various risks
  • Focus on preventative risk indicators for some specific banking activities
  • Use indicators as an effective management tool
  • Define threshold levels for KRIs that translate corporate risk appetite
  • Comprehend the methods and strategies to use KRIs efficiently
Agenda

Agenda

Day 1: Actionable Risk Appetite

Session 1:  Risk In, Taxonomy and Interdependencies of risks

  • ERM in the financial services
  • Risk identification: tools and techniques
  • Exposure and vulnerabilities
  • Rising risks in the financial markets: CRO surveys
  • Risk dependencies: the connectivity view
  • Commonalities between financial and non financial risk management
    Class discussion and experience sharing: rising risks in organisations

Session 2:  Principles and Design of Actionable Risk Appetite

  • Return: the missing piece of risk appetite
  • Governance of risk appetite: the role of the Board, the role of the risk function
  • Risk appetite and risk drivers
  • Risk appetite for credit risk (policy)
  • Risk appetite in market risk: exposure and trading limits
  • Risk appetite in nonfinancial risk: slowly maturing
  • Structure of actionable risk appetite
  • Cascading risk appetite: RCSA & Indicators
  • Top-down and bottom-up approaches to risk appetite
    Class discussion and exercises: Define a risk appetite statement for one or two key risks

Day 2: Identifying and selecting preventive KRIs

Session 3:  Preventive KRIs: a method

  • Features of preventative KRIs
  • Selecting and designing KRI steps by step
  • A typology of KRIs: Exposure, stress, causal and failure
  • KRI design and reporting
    Group work: Participants will have the opportunity to apply this method and share their findings with others in a guided exercise

Session 4:  Root Cause Analysis for KRI Identification

  • Root cause analysis and lessons learnt from large incidents
  • Cause of the cause: The benefits
  • Bow tie tool: Tracking common failures and systematic patterns
  • Identifying causal KRIs
  • Root cause and risk prevention
    Group work: apply a bow-tie analysis to one of your incidents and share the lessons learnt

Day 3: Control design & KRI for specific risks

Session 5:  Control function and KRIs

  • Role of control functions in KRIs and risk appetite?
  • Process mapping: Highlights risks and controls
  • KCIs: Assessing controls: design and effectiveness
  • Typology of controls
  • Typology of human error: The work of James Reason
  • Prevention by design
    Group work: Delegates will work on process mapping of relevant activities and share results with the class

Session 6:  Indicators for Compliance, Conduct and Culture

  • Conduct and Compliance: metrics and behaviours
  • KRI in AML / onboarding risk: case study
  • Case study of a Conduct and Culture change programme
  • Reporting on Culture
  • Other influencers than KPIs
    Group work: define and design relevant KRIs for an operational risk of your choice

Session 7:  KRIs for Project Risk management & New Initiatives

  • Project management and risk management involvement
  • KRI for projects
  • Reporting on projects and changes
  • Testing KRIs: Assess the validity of your indicators
  • Governance around risk indicators:
    Class discussion and benchmarking: KRI definition and governance in different institutions
Course Leader
Ariane Chapelle

Ariane Chapelle

Ariane Chapelle, PhD, is the CEO and Managing Director of Chapelle UK. With over 25 years of experience in risk management, she is an internationally recognised trainer and consultant in Operational Risk.
Dr Chapelle is an Honorary Reader at University College London for the course 'Operational Risk Measurement for Financial Institutions’ and is a Fellow of the Institute of Operational Risk. In 2018, she designed the Certificate of Learning and Practice in Advanced Operational Risk Management, an accredited course for the Professional Risk Managers' International Association (PRMIA), which she delivers globally.
Dr Chapelle is a former holder of the Chair of International Finance at the University of Brussels with backgrounds in internal audit, credit risk and investment risk. She has been active in operational risk management since 2000 and was formerly head of operational risk management at ING Group and Lloyds Banking Group.  
Her book "Operational Risk Management: Best Practices in the Financial Services Industry", published by Wiley Finance Series in December 2018, rapidly became the No.1 bestseller in its field.
Price and Terms
office

Price and Terms

The Masterclass costs 870 £ and is intended for experienced stakeholders from a variety of audiences, including:

  • Chief Risk Officers 
  • Heads of Operational Risk 
  • Enterprise Risk Managers 
  • Operational Risk Managers 
  • Internal Auditors 
  • Compliance Officers 
  • Regulators
Masterclass Terms and Conditions