Operational Risk - Supporting Good Governance

Date: On a date of your choice
Location: Delivered as an interactive briefing
Event Code: ORSGG

Course Details

Operational risk, the risk of loss resulting from inadequate or failed internal processes, people and systems or from external events is inherent in all businesses, products, activities, processes and systems. Effective operational risk management is key to decision-making, good governance and strategic delivery.  Now subject to increasing scrutiny from regulators, investors and customers, this risk is increasingly recognised as a source of serious consequences in terms of losses, regulatory and customer relationships and reputation.  Public disclosure of operational risk losses is also sharpening the focus on operational risk management, with loss data increasingly seen as a barometer of good governance.

Operational risks arising from cybercrime, fraud, technology disruption, third party / supply chain failure and social media are of increasing concern. Coupled with the high level of uncertainty around the implications of leaving the EU, businesses now face a diverse, challenging operational risk landscape - where risk could crystallise at pace.  For those responsible for running or overseeing a business, maintaining a “safe and sound” business, responsive to emerging threats and opportunities, requires strong insight, connected thinking and a collective response to operational risk.

This 3 hours interactive briefing focuses on how to respond to new levels of uncertainty and the changing nature of operational risk.  You will learn how to establish an engaging operational risk strategy, appetite and reporting capabilities that go beyond process and establish a strategic role for operational risk at the centre of your decision-making process.

 The agenda:

1. The Importance of Operational Risk – Increasing Regulatory and Commercial Expectations

  • How corporate culture is changing the Board’s approach ·        
  • Regulatory expectations and how these are raising the standard
  • Changing commercial practices – operational risk in the spotlight
  • Responding to uncertainty, emerging threats and opportunities

2.  How to Deliver an Effective Operational Risk Strategy

  • The Board’s role in challenging risk-taking within strategic delivery
  • Understanding how your operational risks behave under different strategic options and different business scenarios
  • Assessing the operational risk capabilities and investment you need to support strategic delivery.
  • A “blueprint” for delivering your own Operational Risk Strategy

3.  How to Set and Monitor Operational Risk Appetite

  • The Board’s role in operational risk limit-setting and monitoring
  • Best practice for establishing operational risk appetite statements
  • Best practice for designing operational risk indicators and reporting
  • Using appetite to challenge the business, stimulate Board debate and inform decision-making

4.  Operational Risk Priority Areas – Responding to Uncertainty

  • Setting culture, values and behaviours - aligning reward practices and operational risk-taking
  • Using scenarios to test business capabilities, resiliency and inform strategic delivery
  • Deploying risk horizon scanning and risk radars to identify external events and emerging operational risks
  • Focussing governance and reporting arrangements on those operational risks your business strategy / model is sensitive to
  • Leveraging your Operational Risk Framework to deliver a comprehensive and connected view of operational risk

Who should attend?

Board members, business leaders and risk specialists who are accountable for the management and oversight of an organisation’s operational risk management arrangements, the setting and execution of business / operational risk strategy and establishment of operational risk limits

Key Benefits

  • Gain an understanding of the importance and changing context for operational risk and the board’s role
  • Explore practical techniques for developing an operational risk strategy that aligns strategic delivery with an agreed level of risk-taking
  • Explore practical ways for setting operational risk appetite and selecting indicators
  • Learn how operational risk reporting can support decision-making and provide assurance that risk-taking is occurring within agreed limits
  • Gain insight into operational risk priorities and how you can build further operational risk capabilities in your own business

 

 

 

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