Risk Quantification in Operational Risk

Date: 04 - 05 Dec 2018

About the seminar

With some years of loss data collection now achieved, directors and regulators are expecting more and better use of it. CROs and Operational Risk managers need to upgrade the information and recommendations about risk strategies and about how to allocate resources for best control. OR units need to develop quantitative methods to demonstrate the reports and recommendations are based on fact and data, both from internal loss events and also from data outside the firm and combining it with expert opinion.

Regulators increasingly emphasise that banks should improve knowledge of how they could suffer major losses, and know how best to limit them. Use of quantitative techniques and data has to be greatly increased.

In this course, techniques for improving the quantitative assessment of risks, and especially the potential for the most significant losses, will be presented with worked examples and short practice exercises.

Key learning outcomes

  • Recognize additional quantitative techniques for risk estimation
  • Gain confidence is using techniques in estimation
  • Improve data for qualitative and quantitative methods
  • Enhance the value to directors of the risk assessments and reporting
  • Handle data breaks and inconsistencies
  • Handle Interrelationships between risks
  • Implement growing regulatory requirements and expectations of risk assessment
  • Develop techniques for assessing major risks for scenario analysis and stress testing
  • Improve Risk Identification and root cause analysis
  • Assess control effectiveness
  • Improve risk aggregation for Capital Adequacy assessments (Basel requirements)
  • Formulate risk reporting through good KRIs and report formats

Key topic

  • The Importance of Risk Quantification
  • Regulatory Requirements for Risk Assessment
  • The Risk Management Framework
  • Risk Identification
  • Control Effectiveness
  • Risk Assessment 
  • The Risk and Control Assessment Process
  • Major Exposures – Scenario Analysis and /Stress Testing
  • Risk Aggregation
  • Linkage to Other Activities in the Risk Management Framework

Agenda

08.30 – 09.00: Registration

09.00 – 10.30: Session 1

10.30 – 11.00: Coffee Break

11.00 – 12.30: Session 2

12.30 – 14.00: Lunch & Prayer Break

14.00 – 15.30: Session 3

15.30 – 16.00: Coffee Break

16.00 – 17.30: Session 4

Please click here for more information and registration.

 

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