Course Description
We suggest the extended use of a risk management framework proper to operational risk, implementable in most institutions, regardless of complexity of operations.
We highlight extreme risks, for which Basel III was strangely mute, but which are highly relevant to the 2008 crisis. We suggest some pitfalls to avoid.
During this highly interactive seminar, group exercises will be performed, as well as case studies including role games.
Why should you attend:
Metric tons of waters have gone under Brooklyn and other bridges since it was believed that operational risk was just a matter of capital requirements. September 11th, the credit crunch, the demise of prestigious banks, and other dramatic events have had their toll on the old paradigms.
Some techniques have resulted into over-quantification of matters that do not accommodate quantification, let alone sophisticated mathematics. Some other techniques had gone down into talking of small losses from small operations, in a way comparable to Taylor's time-and-motion studies. Some other projects have been quickly hijacked by the political necessities of the moment. Meanwhile, extreme risks were addressed with statements of optimism.
A few aspects are still elusive, such as reputational risk, environmental risk, assessing human risk as a concept, reaching a consensual definition of risk culture, and sharing tools and techniques with other professions.
It is now a matter of competitive situation, for banks of any size and shape, regardless of the burden of new regulation, to manage their operational risks by preempting regulation, to step from a state of desired risk control onto a capability of risk management.
Areas Covered in the Session:
Several case studies will be performed during this seminar, as well as group exercises.
Speaker:
Fred Vacelet:Fred Vacelet is a Financial Risk Management Consultant with an international expertise in Risk Management methodological frameworks. His experience spans some 20 years, advising banks, software houses and others on risk management. Fred holds various degrees, including from London Business School, with post-graduate studies at the Technische (then West)-Berlin and Keio (Japan) universities. A Qualified in Islamic Finance (IFQ), he is a published author on risk management and Basel Accords, and a regular speaker at conferences.
The client list includes ABN Amro, Barclays, CDC Paris, Credit Suisse, DePfa, Deutsche bank, a few London City hedge funds, IBM Consulting, Sungard, National Bank of Egypt, the UK Regulatory body (then FSA, now PRA), Reuters, and numerous other institutions of various countries and sizes. In addition to that, Fred runs training courses and workshops with participants from various banks around the world.
Agenda
Day 1 Schedule
Lecture 1:
Risk Appetite
Lecture 2:
Risk-and-Control Self-Assessment
Lecture 3:
Operational Risk and Governance
Lecture 4:
Case Study
Day 2 Schedule
Lecture 1:
Tools and techniques for operational risk management : the ones that will work and the others
Lecture 2:
Risk Modelling and setting up Key Risk Indicators
Lecture 3:
Stress-testing, beyond psychodrama and public shows
Lecture 4:
Case study
Audience
Chief Operation, Information Officers
Risk, Compliance, Legal Officers
Auditors, Accountants
IT, Engineering, Operational, Marketing, Sales personnel
Consultants, Project, Planning, Managers
Any industry professional impacted by operational risk