Introduction to Operational Risk Management

Certificate of completion (supplied by PasarTrainer)

Training Material

A multiple-choice test to assess the participants' proficiency level before enrolling in the training program.	

Pre-Test (20 Questions - Closed Book)

* Risk & Control Self Assessment (RCSA) template


This module explains an overview of Operational Risk Tools - Risk & Control Self Assessment (RCSA).

Module 3. Operational Risk Tools - Risk & Control Self Assessment (RCSA)

* Presentation : Group discussion on RCSA template

A group role play or exercise (case study) where participants are asked to develop RCSA based on their respective area/working unit.


Presentation : Group discussion on their respective key activity and key process

* Risk definition and ilustration
* Risk management evolution based on Basel 
* Type of risk and its example


This module explains an overview of risk in the banking industry.
  

Module 1. Risk Overview

* Group exercise : Risk observation in work place 
* Debriefing : Group discussion on type of risk


A group role play or exercise (case study) where participants are asked to observe and identify the type of risk	  

Case Study II

This module explains an overview of Operational Risk Tools - Key Risk Indicator (KRI).

Module 4. Operational Risk Tools - Key Risk Indicator (KRI)

* Presentation : Group discussion on KRI


A group role play or exercise (case study) where participants are asked to develop KRI based on their respective area/working unit. 

Presentation : Group discussion on their respective key risk

* The definition of operational risk  
* Causative factors of operational risk and its example
* Introduction to operational risk process
* Introduction to operational risk framework - Three Lines of Defense concept
* The example of operational risk in the certain working unit
* Four types of risk responses and 10 operational risk control/mitigation	  
 

This module explains an overview of Operational Risk

Module 2. Operational Risk Overview

* Group exercise: Operational Risk Management
* Presentation: Group discussion on the Operational Risk Management Cycle

A group role play or exercise (case study) where participants are asked to practice the operational risk process.

Case Study III

* Loss Event Database (LED) and Root Cause Analysis (RCA) template


This module explains an overview of Operational Risk Tools - Loss Event Database (LED) and Root Cause Analysis (RCA).


Module 5. Operational Risk Tools - Loss Event Database (LED)

* Presentation : Group discussion on LED & RCA template


A group role play or exercise (case study) where participants are asked to develop and fill LED and RCA templates based on the example of loss events.

Presentation : Group discussion on example of loss events

A multiple-choice test to assess the participants' proficiency level after enrolling in the training program.

Post-Test (20 Questions - Closed Book)

The need for risk mitigation capabilities, especially operational risk, is becoming increasingly important for all employees, particularly managers and supervisors. This is very important considering that operational risk is a type of risk that is inherent in every working unit in various types of businesses and has the potential to have a significant impact on losses. Therefore it is urgent to have the basic knowledge and operational risk capabilities; starting from identifying, and measuring, to implementing the type of control or mitigating operational risk and monitoring it, including the causative factors.

After completion of this program, participants will be better able to:
* Understand the definition and type of risk in the banking industry
* Understand more about operational risk, its causal factors, and the reason why it's important to be managed
* Conduct operational risk management process
* Develop operational risk management tools and understand how to use it 
* Set up an appropriate action plan for control improvement based on root cause analysis 