Operational Risk & Key Risk Indicators (KRI)

Workshop Overview

Operational Risk Management (Op Risk) is a comprehensive systematic approach for helping organisations identify, measure, prioritise and respond to the operational risks challenging its most critical objectives related to projects, initiatives and day-to-day practices. Firms want to become more effective in using Operational Risk as a strategic decision-making instrument to run the business supported by Risk optimization within a risk management framework.

In addition to Operational Risk, this course will also focus on Key Risk Indicators (KRIs) and how they can effectively help an organisation prevent risks and take advantage of the opportunities posed by certain risks. The course reviews KRIs in detail and provides a framework for applying KRI management processes to improve risk awareness and goal completion in the organisation. By attending this course, you will receive practical advice on how the Firm’s management can mitigate risk at its early stages and adjust risk management tactics to maximise the benefit of risk through Key Risk Indicators.

The Basel II Accord introduced for banks has the concept of advanced internal models where for the first-time capital was required for operational risk. The regulatory response for Operational Risk during the 2008-2009 financial crisis is now contained and now preparations have started for Basel IV not as a single regulatory framework but rather as a collection of changing international banking standards. In fact, the Basel Committee view these reforms as simply completing the Basel III Accord as it contests the use of the unapproved ‘Basel IV’. Irrespective of the terminology, significant new burdensome requirements are being introduced by the Bank for International Settlements and the Basel Committee of Banking Supervision.

In fact, Basel IV is being referred to as the most comprehensive transformation package in the history of the Basel regulations. This course will discuss the Basel IV calculations and requirements in detail.

This course/workshop explains the subject of Operational Risk Management and KRIs and explores the process and techniques available for the successful assessment and treatment of operational risk and the embedding of operational risk management KRIs in the organization.