e-learning and reference solutions for the global finance professional

Operational Risk Management

A comprehensive e-learning product covering sound
Operational Risk Management Framework, Methodologies and Practices

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The theme of this product:
Proposes the development of Operational Risk Management in financial institutions as a distinct function with its own process, structure,tools and measures
For information about our other off-the-shelf e-learning solutions see Course Catalog
  Highlights
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Overview
Changes in markets, techniques, technologies, and products have altered the landscape of Operations and fueled the explosive development of Operational Risk management. The regulators of financial and public companies are demanding a far greater level of disclosure and awareness by directors about the risks they manage and the effectiveness of the controls they have in place to reduce or mitigate these risks. There is also a greater realization that a major source of earnings volatility can be attributed to the way a firm operates and not “financial risk”. All these changes have triggered the need for an efficient Operational Risk Management system in organizations.
After completing this course you will be conversant with:
  • A framework and methodology for measuring and modeling Operational Risk

  • How to identify, analyze, measure and manage risks by employing models and methodologies

  • Various softwares offered by vendors for Operation Risk Management
Target Audience
Every professional involved in the global financial services industry (as a provider, user, regulator or advisor of product/services, marketplace/exchange) would benefit from KESDEE’s innovative solutions.

  • Supervisory Agencies

  • Central Banks

  • Financial Institutions

  • Commercial Banks

  • Investment Banks

  • Housing Societies/Thrifts

  • Mutual Funds

  • Brokerage Houses

  • Stock Exchanges

  • Derivatives Exchanges

  • Insurance Companies

  • Multinational Corporations

  • Accountancy Firms

  • Consultancy Firms

  • Law Firms

  • Rating Agencies

  • Multi-lateral Financial Institutions

  • Others


    •
    Course Level and Number of Courses
    Intermediate Level. Library of 21 Courses

    Instructional Method
    Dynamic, Interactive e-learning

    Recommended Background
    Familiarity with basic financial concepts

    For purchase,contact us at
    PO Box 910207. CA 92191, USA
    Phone: +1-858-755-8527 Fax: +1-858-755-6973, +1-858-756-8587, E-mail: information@kesdee.com, Website: www.kesdee.com
      Library of 21 Courses
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    Operational Risk Management
    Time taken to complete each Course: Two - Three hours

    1.Introduction to Operational Risk

    • Objectives

    • Defining operational risk

    • Significance of operational risk

    • Operational risk management programs

    • Addressing operational risk

    • Measuring and modeling operational risk
    2.Basic Concepts
    • Objectives

    • Loss events

    • Risk Factors, loss types and event/ factor controllability

    • Dependencies between Risk Factors and Events

    • Attribution of Loss

    3.Regulatory Treatment of Operational Risk under Basel-II

    • Objectives

    • Introduction, Definitions and data issues

    • Measurement Methodologies

    • Role of Pillars 2 and 3
    • Sound Practices
    4.Operational Risk in Various Banking Sectors
    • Objectives

    • Introduction and Spectrum of Risks

    • Accounting policies, costing and pricing models

    • Private banking sector
    5. Operational Risk in insurance
    • Objectives

    • Introduction

    • Risks exclusive to insurance and Regulatory Issues

    • Alternative Risk Transfer and Finite Risk Captives
    • Captives
    6.Developing objectives and identifying risks
    • Objectives

    • Risk Management Agenda

    • Risk Management Targets

    • Risk Management Organization and Policies

    • Benchmarking Internal Processes and Resources

    • Identifying Process and Resource Risks

    • Identifying Risk Factors

    • Identifying and Categorizing Loss Events
    7.Estimating potential losses – Data
    • Objectives

    • Challenges to Operational Risk analysis

    • General measurement techniques

    • Historical analysis

    • Subjective risk assessment
    8. Estimating potential losses – Loss distributions
    • Objectives

    • Overview of probability distributions

    • Building a distribution

    • Probability distributions

    • Estimating risk factors

    • Choosing an event distribution

    • Operational Risk database
    9. Analyzing risks
    • Objectives

    • Aggregating risks

    • Monte Carlo loss simulation

    • Risk management alternatives

    • Analyzing loss events

    • Analyzing risky processes and resources

    • Analyzing risk factors
    10. Loss prediction and prevention
    • Objectives

    • Loss prediction

    • Loss prevention

    • Process reengineering and work restructuring

    • Product redesign and automation

    • Human factors engineering

    • ERP and reliability maintenance
    11. Loss control
    • Objectives

    • Introduction

    • Diagnostic controls and Inventory management

    • Redundant systems and boundary systems

    • Computer security and physical security management

    • Internal and external audit
    12. Loss reduction and risk avoidance
    • Objectives

    • Legal risk reduction and loss isolation

    • Contingency Planning

    • Crisis Management

    • Risk avoidance

    • Quality management

    • Human resources management

    • Organizational design, Culture and relationship management
    13. Risk financing
    • Objectives

    • Introduction

    • Financial restructuring

    • Asset-Liability Management

    • Corporate diversification

    • Insurance

    • Self-Insurance

    • Hedging using derivatives

    • Contractual risk transfer
    14. Measurement framework
    • Objectives

    • ORM cycle

    • Framework criteria and assumptions

    • Current framework approaches

    • Measurement process for ORM

    • Delta and EVT methodologies
    15. ORM in practice
    • Objectives

    • Learning and response loops

    • Guidelines for effective reporting

    • Event reports and Operational profiles

    • Risk reports

    • Evaluating and updating the risk model

    • Implementing bank-wide ORM

    16. Enterprise-wide Risk Management (ERM)

    • Objectives
    • Role of technology
    • Enterprise-wide risk information systems
    • Challenges to ERM
    • Project Management for an ERM system

    17. Basic and causal models

    • Objectives
    • Operational Risk Management (ORM) model
    • Top-down risk models
    • Bottom-up risk models
    • Selecting a risk model
    • Causal models

    18. Legal risk and taxation rules

    • Objectives
    • Introduction
    • Contract enforcement
    • Board of directors and shareholder activism
    • Management responsibility for legal risk
    • Transparency and collateral
    • Shifting ground in international taxation

    19. E-banking

    • Objectives
    • Introduction
    • Operational risks associated with Electronic Banking
    • Security risk
    • Systems design, implementation, and maintenance flaws
    • Customer misuse of products and services

    20. Systems and software

    • Objectives
    • Introduction
    • Framework/Components of an operational risk system
    • Operational risk software
    • AMELIA
    • MICROBANK
    • Relex software

    • ALGORITHMICS
    21. Case study Barings
    • Objectives
    • Overview
    • How the massive losses were incurred
    • Lessons to be drawn from the incident

    JOB AIDS

    • Measurement Tools
    • Disclosures
    • Global Best Practices
    • Policy Templates

    Calculators in Operational Risk Management

    1. Probability Distributions
    2. Capital Charge Under the Basic Indicator Approach
    3. Capital Charge Under the Standardized Approach
    4. Internal Measurement Approach

      Available Products
    Home
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    • Financial Institution Analysis - CAMELS Approach Library of 8 Courses
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    • Basel-II: University Library of 63 Courses
    • Sarbanes-Oxley Act Library of 12 courses
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    • Market Risk (Basic Level) Library of 8 Courses
    • Market Risk (Intermediate Level) Library of 8 Courses
    • Market Risk (Advanced Level) Library of 4 Courses
    • Value at Risk Library of 16 Courses
    • Credit Analysis Library of 13 Courses
    • Credit Ratings Library of 3 Courses
    • Counterparty Credit Risk Library of 9 Courses
    • Credit Risk Modeling Library of 6 Courses
    • Credit Derivatives Library of 23 Courses
    • Operational Risk Management Library of 21 Courses
    • Asset Securitization Library of 28 Courses
    • Asset Liability Management for Insurance Companies Library of 29 Courses
    • Anti-Money Laundering Library of 6 Courses
    • Financial Privacy Library of 6 Courses
    • Corporate Governance Library of 9 Courses
    • Money Markets Library of 9 Courses
    • Fixed Income Markets Library of 17 Courses
    • Equity Markets Library of 10 Courses
    • Foreign Exchange Markets Library of 9 Courses
    • Foreign Exchange Management Library of 7 Courses
    • Treasury Analytics Library of 5 Courses
    • Interest Rate Risk Management Library of 4 Courses
    • Funding and Investments Library of 5 Courses
    • Implementation - Treasury Management Library of 4 Courses
    • Case Studies - Treasury Management Library of 5 Courses
    • Understanding Financial Statements Library of 2 Courses
    • Budgeting Library of 5 Courses
    • Management Accounting Library of 7 Courses
    • Financial Accounting Library of 9 Courses
    • Mutual Funds Library of 11 Courses
    • ePRM Coach Library of 68 Courses
    • eFRM Coach Library of 61 Courses
      Upcoming Products
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    KESDEE has the required technology platform to respond to clients training requirements in the financial industry. We offer several solutions, each developed with the guidance of creditable experts. Given below are few of the forthcoming products:

    • Financial Planning
    • International Trade Services
    • Bank Branch Management
    • Mortgage Finance
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    Copyright © 2006 KESDEE Inc.
    Please return this form by Mail or Fax to:
    KESDEE Inc. P.O. Box 910207, San Diego, CA 92191, U.S.A.
    Phone: +1-858-755-8527 Fa    x: +1-858-755-6973, +1-858-756-8587
    E-mail: information@kesdee.com Website: www.kesdee.com