Operational risk is defined by the Bank for International Settlements as the "risk of loss resulting from inadequate or failed internal processes, people and systems or from external events." There are four exceptionally wide-ranging factors: internal processes, people, systems, or external events. To make them absolutely clear, the Bank for International Settlements has categorized them into seven distinct groupings that cover virtually every element of the operations of financial institutions outside of the credit and liquidity aspects.
This course examines each of the seven operational risks categories, and it provides a detailed explanation on each risk explaining what it is, what type of events are involved, why these activities pose a risk, and provides participants with clear practical examples.
Operational risk is intrinsic in all banking products, all banking activities, all banking processes, and all banking systems. The effective management of all of these operational risks is a basic component of a bank’s risk management program.
Learning Objectives
- Discover the total risk spectrum.
- Discover what the individual operational risks are.
- Explore each of these risk categories, what they are and what causes them.
- Identify the different types of operational risk.
- Discover what “Black Swan” events are.
- 1. The Creation of a Scope, Statement, and Proof of Loss
- 2. Thinking About Centralizing Accounts Payable? – Due Diligence is Critical
- 3. What to Consider in an Accounts Payable Workflow Solution
- 4. Selecting an Accounts Payable Automation Provider
- 5. No PO, No Pay – Can It Work for Your Organization?
- 6. Optimizing the Sales Manager’s Time to Achieve Priorities – Allocating/Saving Time for Top Priorities and Efficiency
- 7. Credit Department Automation: Is This The Right Time?
- 8. Choice of Entity: Corporation vs. LLC vs. Partnership - A Critical Decision for Start-Ups and Emerging Companies
- 9. Methods of Payment for Wages
- 10. You've been sued - Now What?
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Prerequisites
No advanced preparation or prerequisites are required for this course.