Synopsis – Course Overview

From risk environment to risk culture, the course covers in breadth and depth the most topical elements of operational risk management and its challenges for the financial services industry.

Taught by a world-leading expert in the field, the course is a must-have for all operational risk practitioners wishing to benchmark their practice and discuss best practices. It is also a fantastic opportunity for newcomers to gain a comprehensive overview of what modern operational risk managers need to know.

Delegates will leave the course equipped with a new network of practitioners, a wealth of content, additional references and readings, and an open line for further questions with the trainer, Ariane Chapelle.

ORM Masterclass

Get an overview of the course by downloading the brochure [PDF]

Key Objectives and Learning Outcomes

After the course, participants will know about:

  • Identification of emerging risks

  • Risk and control assessment

  • Risk appetite and monitoring

  • Selecting and designing preventive KRIs

  • Defining and assessing scenarios

  • How to use root cause analysis most effectively

  • Influencing behaviours for better control

  • Risk reporting and aggregation

  • Building a framework for risk culture change

  • Trends for the future of operational risk management

Course outline

Day 1: Emerging Risks, Risk Appetite, Risk and Control Assessment, KRIs

  • Recent market developments in operational risk
  • Regulatory context
  • Tools and techniques for risk identification
  • Addressing Emerging risks: types and tools
  • Operational risk framework: building blocks and consistency

Workshop and discussion: common trends and challenges in operational risk and non-financial risk management

  • Industry guidance on risk appetite
  • Definition and Governance: Communicating Risk Appetite
  • Risk Appetite Statements: Features, Templates and Examples
  • The importance of taxonomy
  • Risk connectivity: a network of risks

Class Exercise: express risk appetite, tolerance and limits for two of your top risks

  • Definition and rules for RCSAs
  • Impact scales and risks ratings
  • Usage and choice when defining RCSAs
  • Control Types and Assessment
  • Essentials of control testing
  • Alignment with risk appetite

Class Exercise: Apply an RCSA to your top risks

  • Essential features of preventive KRIs
  • KRI, KPI, KCIs: concepts, overlaps and examples
  • Classifying KRIs: Environmental, Stress, Causal and Failure
  • Bow-tie: identifying patterns of failures and leading KRIs
  • KRI design and threshold definition
  • Aggregating, reporting and validating KRIs

Exercise: Apply the bow-tie to one of your incidents; define relevant KRIs

Day 2: Scenario analysis and ICAAP, risk Governance and reporting, risk culture

  • Brainstorming and workshop techniques to identify scenario
  • Scenario assessment: structure and method to mitigate behavioural biases
  • Assessing rare events: Examples of scenario assessment
  • Using scenarios to evaluate operational risk capital needs under pillar 2
  • Stress testing for operational risk
  • Operational risk resilience
  • ICAAP Case studies

Class Exercise: Applied scenario structuring

  • The role of incident data collection
  • Data features: core losses and tail risks
  • Three golden rules of reporting
  • Content of risk reporting pack
  • Aggregating and escalating risk data

Class interaction: best practice and sharing of experience

  • Roles and responsibilities in risk management
  • 3 lines of defence, 3 lines of accountability
  • Hybrid risk functions
  • Defining risk culture: acting on key behaviours
  • Influencing risk culture: a method

Class discussion: Current and target culture at the firm

  • Operational Resilience
  • Climate Risk
  • AI for operational risk
  • What’s next for operational risk?

Concluding remarks: Positive Risk Management

Course Leader: Dr. Ariane Chapelle

Dr. Chapelle is an internationally recognised speaker, writer and advisor in Operational Risk Management, active in the field since 2000. She holds a PhD in Economics, Masters degrees in Business and Econometrics and she is an Associate Professor at University College London for the course ‘Operational Risk Measurement for Financial Institutions’.

Dr. Chapelle has published extensively on the topic (5 books and tens of articles). Her recent textbook Operational Risk Management: Best Practices in the Financial Services Industry, published by Wiley Finance Series in December 2018, rapidly became the No.1 best seller in its field. It has been translated in French by Pearson in 2020 and got named the “Book of the Year 2020” by risk.net.

Dr. Chapelle founded and ran her advisory and training practice, Chapelle Consulting, which became BDO Chapelle in October 2022. BDO Chapelle serves financial institutions of all sizes as well as international organisations, including central banks, the World Bank and the IMF. In 2019, the firm received the Risk.net Award for ‘Outstanding Achievement in the Year in Operational Risk’ and multiple awards for best risk management training and advisory company in the UK and in Europe.

Testimonials

“The speaker did an amazing job making a dry subject entertaining and engaging. She was lively and explained concepts in a way that was applicable to all the people in the room. I learned a lot from this training.”

“Extremely enlightening and timely.”

“The course simplifies risk management in a practicable manner. “

“I enjoyed the class very much and can’t say enough about how effective the lessons were. I am already applying what I learned during the course and implementing a lot of your ideas. Thanks!”

“Ariane is an exceptional trainer, engaging and she brings her subject to life with lots of examples from many different organisations.”

“Excellent! Incredibly knowledgeable trainer, who was engaging & inspirational in her delivery. Very practical course.”

“Ariane has been one of the few instructors I’ve met with a wealth of knowledge in operational risk pillar.”

Details

  • Location: 7th Floor, North, 55 Baker St, London W1U 7EU

  • Price £2000 or €2250 (+ applicable VAT)

  • All participants will receive a signed copy of Ariane Chapelle’s textbook