Operational Risk Management Essentials

Operational risk is the ‘risk of loss resulting from inadequate or failed internal processes, people and systems, or from external events.’ Reducing operational risk is vital to financial firms as sound operational risk management will improve a firm's efficiency, provide a stable working environment and improve day-to-day working conditions. Operational risk events, however, can have severe consequences for firms and, in the most serious cases, threaten their survival. To avoid these consequences, operational risk management training is crucial.

Recently, there have been several firm in the news that have suffered major financial and reputational damage as a result of operational risk failings. These cases, along with other factors, have caused financial institutions to take a closer look at the various operational risks they face, ranging from information security to business disruptions to employee errors and more.

The topics covered in the course include:

• What is operational risk?
• Categories of operational risk
• Managing risk
• Business continuity management
• Employee roles in managing operational risk