Operational Risk Management – A Practical Approach

Price: $995   Register now

Recommended that you register at least two weeks in advance.

Course Features

  • Course date:06/02/2020
  • Course Duration: 1 Day
  • Level: Beginner-intermediate
  • Prerequisites: None
  • Method: Live & Virtual
  • Venue: 115 Broadway, NY, NY 10006
  • Time: 9:00 am – 5:00 pm
  • Dress Code: Business Casual
  • Category:
  • Certificate: Yes
  • CPE Credits: 7
  • Course Code: 104

Operational Risk Management – A Practical Approach

Do you have limited resources to implement an operational risk framework? Are you trying to determine the vital elements of a successful operational risk program? Are you unsure where you should focus your efforts to ensure you meet your business and regulatory requirements? Do you want to learn the do’s and don’t’s of a successful and practical approach to operational risk management? Would you like to have proven generic templates to kick start your program?

Who should take this seminar

  • Operational Risk Managers and Analysts
  • All Operations Staff
  • All IT Staff
  • Risk Managers
  • Compliance Officers
  • Regulators
  • Auditors
  • Supervisors
  • ERM Managers

By the end of the course, the participants will be able to:

  • Identify the central issues in operational risk management
  • Define the five essential elements of risk management
  • Distinguish between the three operational risk approaches
  • Evaluate the various models of risk – including the Swiss Cheese model and Normal Accident theory
  • Understand how financial institutions undertake Controlled Self Assessments (CSA’s) and where potential opportunities exist–Lowering Capital requirements under AMA vs. Capital Increase
  • Link various forms of Operations Risk, Basel II and Basel III
  • Compare and contrast VaR and RAROC for Operational Risk
  • Evaluate the impact of Insurance on hedging operational risk
    • The role of AIG?
    • Now, the role of the U.S. (& other) Gov’t’s
    • The role of CCPs to mitigate settlement Risk

Session 1 – Risk Management Overview

  • Overview of Risk Management
  • Describe the 5 essential elements of Risk Management
  • Describe what “normally goes wrong”
  • Describe how Risk may be aggregated and mitigated

Session 2 – Intro to Operational Risk

  • Definitions of Operational Risk
  • Examples of significant Operational Risk losses
  • Swiss Cheese Model of OR
  • Normal Accident theory

Session 3 – Definition of Risk Classes

  • To illustrate the potential forms of Operational Risk losses
  • To describe the Basel Risk categories for loss data capture and how they are now relevant to all Financial Institutions – by LOB
    • Moving from Basel I & II to Basel III
    • Is there a Basel IV?

Session 4 – Control Self Assessments

  • To consider the use of qualified assessments of Operational Risk
  • To review how Risk and quality can be measured in a subjective fashion
  • To illustrate the use of a self-assessment scorecard for prediction of future Operational losses
  • To discuss how CSA’s would be identified for Asset Managers

Session 5 – Operational VaR

  • To describe how a Value at Risk number for Operational Risk can be calculated using a “loss” data approach
    • The Actuarial Model
    • Severity Distribution
    • Frequency Distribution

Session 6 – Insurance and Risk Financing

  • Risk Finance options
  • Conventional insurance
  • Moving from conventional insurance to captive Risk Finance
  • Trends in Operational Risk Insurance

Session 7 – Final Review and Questions


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  • Mayra Rodríguez Valladares is the Managing Principal of MRV Associates.  She specializes in training and consulting solutions for Basel III, Dodd-Frank, risk management, financial derivatives, capital markets, foreign exchange, and corporate finance.  She has worked with the private sector and foreign central banks in the US, UK, Latin America Eastern Europe, Central, and Southeast Asia, …
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