Standardized, data-driven and field-tested capital metrics are now in place globally for bank credit, market and liquidity risks. By contrast, after 15 years of laborious and costly data collection and analysis, regulators have abandoned efforts to develop performance-based capital measures for operational risk. Simultaneously, stress testing has become widely recognized as a critical element of risk management and decision-making for banks, and a core tool for banking supervisors and macroprudential authorities. Together, these two developments have propelled operational risk scenario analysis and stress testing to the forefront as the most viable method of quantifying operational risk at a granular and company-specific level.
The challenges for banks in developing the capability to measure their operational risks using these methods are significant - lack of established standards and processes, data scarcity and inconsistency, and fragmented systems.
This course will address those challenges by enabling you to:
Identify today’s most significant operational risks, according to supervisory thinking and industry ranking, and how they are interconnected
Familiarize yourself with the latest regulatory standards and expectations (from BCBS, Bank Negara and other jurisdictions) for operational risk capital measurement, scenario development and stress testing
Recognize the multiple organizational roles in operational risk measurement and management
Select and use appropriate approaches for operational risk analysis and measurement, taking into consideration data and systems limitations
Understand the objectives and parameters of operational risk stress testing
Use established methodologies to develop and analyse operational risk scenarios
Use a disciplined, multi-dimensional approach to effectively design and conduct operational risk stress tests
Practice these techniques in four operational risk scenario development and stress testing case studies based on actual events
Why to attend?
Special price is valid until end of November