Risk Management - Operational Risk Management and Conduct Risk

Operational risks represent the broadest category of risks in terms of scope and contents and apply from the highest level (Board of Directors and Management Board / Authorised Management) to all stakeholders in banking institutions (commercial, support and control functions). The operational risk management function is at the heart of the organization and acts as a linking pin across the various functions, following a Causes - Effects relationship when anticipating/ mitigating operational risks. Bringing undeniable added-value to the control environment as a whole and to the business functions in particular in a sustainable execution of the company's business model, this function has evolved with recent regulatory changes and the necessary transformation of operating models to optimize the use of existing resources.

Alternating theoretical/ conceptual parts and practical application of concrete operational risk management tools, this course covers the following aspects:

• Definitions and regulatory environment surrounding operational risks

• The operational risk framework & operational risk cycle

• Drivers and causes of operational risks

• Definitions, types and mitigants of Conduct risk

• Main tools of operational risk management

• Practice – using operational risk management tools

• Impact of the evolution of regulation and business/ operating models on operational risks

As part of the global certification program of the House of Training and ABBL in Risk Management in banking, this course aims at improving participants' capacity to:

• Identify, assess and manage operational risks through quantitative and qualitative criteria in a systematic and agile operational risk management framework.

• Report mitigated operational risks to the right levels of the institution in order to maintain its risk profile within the risk appetite defined by the Board of Directors.

• Understand and practice the main operational risk management tools, their purposes, specificities, benefits and limitations.

• Capture Conduct risk and its different sources to define the most appropriate mitigating responses.

• Refresher of previous certification module/ global picture

• Definitions and regulatory environment surrounding operational risks

• The operational risk framework & operational risk cycle

• Drivers and causes of operational risks

• Definitions, types and mitigants of Conduct risk

• Main tools of operational risk management

• Practice – using operational risk management tools

• Impact of the evolution of regulation and business/ operating models on operational risks

 Banking professionals seeking an advanced risk management certification with 5 years + of experience in the financial industry.

For this training course, an optional exam is available. In case of interest, candidates can choose a date from the list of proposed examination sessions. Registration for the exam must be made at least five days before the chosen exam date. The exam is subject to a registration fee.

The examination consists of true/false and multiple-choice questions. To pass the exam, a candidate must achieve a score of at least 50% of the total points on the exam.

This module is part of the Risk Management Certification.  

More details here: Professional Risk Management Certification