Course details

Operational Risk Management Framework, Process, and Applications

Operational Risk Management Framework, Process, and Applications


Overview/Description
Target Audience
Prerequisites
Expected Duration
Lesson Objectives
Course Number


Overview/Description
Basel regulations include established principles and guidelines for managing operational risks and holding adequate capital to cover potential losses from operational risk events. The Basel Committee requires a bank or a financial institution to have an adequate operational risk management framework for this purpose. As a result, an operational risk management (ORM) framework and corresponding ORM processes should comprise important steps such as identification, assessment, reporting, monitoring and control, and mitigation of operational risk. The ORM efforts at a bank yield several management applications aimed at business goals such as risk awareness, loss reduction, and risk optimization and mitigation. This course discusses various aspects of operational risk management framework, process and applications in banks. It identifies key risk events, characteristics of an operational risk management framework, and steps in an ORM process. The course then discusses key management applications of ORM efforts, challenges, and components of ORM deployment strategy.

Target Audience
Financial services professionals, consultants, and sales professionals interested in providing or selling products and services to banks and other financial institutions, and everyone interested in knowing about credit and operational risk exposure to banks and capital requirements to cover those risks in light of the Basel framework.

Prerequisites
None

Expected Duration (hours)
1.0

Lesson Objectives

Operational Risk Management Framework, Process, and Applications

  • identify risk events
  • recognize characteristics of an operational risk management framework
  • differentiate between the stages in an ORM process
  • recognize characteristics of ORMF and ORMP
  • identify examples of management applications and their descriptions
  • identify challenges of managing operational risk
  • identify components of ORM strategic requirements
  • recognize characteristics of ORM
  • Course Number:
    fini_07_a09_bs_enus