Fully Booked: Developing and Implementing an Operational Risk Appetite Framework

This workshop is fully booked, next date is 23 June 2017.

Hundreds or even thousands of business decisions are made within a bank every day. Each decision may either introduce new risks or change exposure level of existing risks, within the operational risk profile of the bank. An effective operational risk appetite framework can guide the decision makers to take the right level of right operational risks. This can provide dual benefits to your organisation of preventing reckless risk taking, as well as preventing creation of a competitively damaging “risk shy culture”.

This workshop will cover practical approaches for developing and implementing an operational risk appetite framework by aligning it with the business strategy, risk culture and risk capacity of your organisation.

In this workshop, you will be introduced to practical approaches for defining an operational risk appetite framework considering organizational factors such as: –

  • Risk Capacity (covering financial and non-financial)
  • Risk Culture (in context of the organisational culture)
  • Business Strategy (covering objectives and approach to achieve these)

 

You will also be introduced to practical approaches for implementing the framework by: –

  • Integrating the framework within risk and control assessment processes
  • Integrating the framework within business decision making processes
  • Implementation of policies, risk tolerances and controls

 

Who Will Benefit

This focused workshop has been designed to help:

  • Risk Managers within central risk management teams responsible for defining the group level operational risk appetite framework for their organisation
  • Risk Managers within business division risk management teams responsible for defining the operational risk appetite framework for their business division
  • Board Members and Senior Executives who want to influence the level of risk taking within their organisation through operational risk frameworks
  • Internal Auditors responsible for providing assurance on the quality of the operational risk appetite framework and its implementation

Key issues addressed in this one day workshop include:

  • Common definitions of risk appetite
  • Purpose and benefits of defining operational risk appetite beyond regulatory compliance
  • Understand the relationship between business strategy, risk taking and risk appetite
  • Understanding “risk capacity” and how this influences risk appetite
  • Understanding “risk culture” and how this influences risk appetite
  • Indicators for assessing the level of risk appetite
  • Embedding the framework within the risk and control assessment processes for operational risks
  • Embedding the framework within the business decision making processes
  • Defining criteria for communicating acceptable and unacceptable level of risks
  • Understand challenges in quantifying risk appetite
  • Defining content for operational risk appetite policy
  • Defining content for operational risk appetite statement
  • Implementing the framework through risk tolerances
  • Implementing the framework through controls and policies
  • Implementing the framework at different levels within an organisation
  • Stakeholders involved in defining and implementing the framework
  • Typical hurdles in implementing the framework and how to address them
  • Escalation of risk appetite breach & risk appetite related reporting
  • Periodic review and update of the framework

  • Session I: Introduction
  • Session II: Purpose and benefits of defining the risk appetite framework
  • Session III: Understanding the common definitions of risk appetite
  • Session IV: Aligning risk appetite with business strategy, risk capacity and risk culture
  • Session V: Defining the framework including operational risk appetite statement & policy
  • Session VI: Defining criteria for communicating acceptable and unacceptable risks
  • Session VII: Embedding the framework within risk assessment & decision making processes
  • Session VIII: Implementing the framework through risk tolerances, controls & policies
  • Session IX: Typical challenges in implementing the framework
  • Session X: Q&A + Conclusions

 

Programme details:

Registration: 09:00
Start: 09:30
Close: 17:00

Lunch will be served and there will be two 15 minute breaks (mid-morning, mid-afternoon).

 

Approach to Learning

Our training is focused on transferable skills, helping you take away as much as possible from every day you spend with us, this means that all of our face to face learning is interactive and practical, using a variety of approaches to maximise relevance.

In this workshop you will have the opportunity to share with your peers and raise issues impacting you and your organisation either confidentially or in open session with the trainer.

Manoj Kulwal

Manoj Kulwal has 18 years of international experience in managing strategic, operational and compliance risks.  He implements operational management initiatives and conducts training courses for medium to large organisations. Project topics cover operational risk, ERM framework benchmarking, information security risks, risk appetite, risk aggregation, Sarbanes Oxley and regulatory change management.

 

A professional member of The Institute of Operational Risk, member of the RM/1 committee at British Standards Institute, and Co-founder and Chief Risk Officer at RiskSpotlight, he is involved in ISO 31000 revision, has authored risk management articles for the Risk Universe magazine, and supports global initiatives which develop operational risk management disciplines.

 

His risk management related videos on YouTube can be viewed using the links below: –

 

  • Introduction to Operational Risk – Link
  • A Content Level Comparison of COSO ERM and ISO 31000 – Link
  • Understanding ISO 31000 definition of risk – Link
  • Understanding Uncertainty as covered in ISO 31000 – Link

Take this one day workshop in-house

If you have five or more delegates who wish to attend this briefing, it may be more cost effective to run it in-company. To find out more about in-company training, please contact Philip Allen Director of Learning on 0207 216 8843 or philip.allen@bba.org.uk

 

Our new Three lines of defence eLearning module will be available from the BBA eLearning Academy in January 2016.