Operational Risk Management in Banking

This training will teach participants in-depth skills and knowledge on how to manage Operational risks. Participants will learn multiple methods to manage Operational Risks and will also learn to calculate capital charge.

This training is a continuation of Fundamental of Risk Management. Therefore, it is suggested that participants to enroll to Fundamental of Risk Management training prior to this one.

Certificate of completion (supplied by PasarTrainer)

Training Material

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

Pre-Test (30 Questions - Closed Book)

1. Definition of Basic Indicator Approach
2. BIA Formula
3. Breakdown of BIA Components

In this module, participants will deep dive into operational risk capital calculation using the BIA.

Operational Risk Capital Calculation - Basic Indicator Approach (BIA)

After understanding the basic theories, participants will conduct operational risk capital calculation using the BIA.

Exercise - Calculating ORC with BIA

1. What is Risk & Operational Risk?
2. Types of Operational Risk
3. When and Where Operational Risk Happens
4. Who should be Responsible?
5. How to Manage Operational Risk?
6. The Foundation to Apply Good Operational Risk Management

This module will provide a general understanding of Risk Management and Operational Risk Management practice.

Introduction to Operational Risk

1. Definition of Standardized Approach
2. SA Formula
3. Breakdown of SA Components

In this module, participants will deep dive into operational risk capital calculation using the SA.

Operational Risk Capital Calculation - Standardized Approach (SA)

1. Understanding Loss Events
2. Operational Risk Factors
3. Controlability of Loss Types & Loss Events
4. Risk Factors & Risk Events Dependencies
5. Loss Attribution

The Basics of Operational Risk

1. Principles of Operational Risk Management
2. The Fundamentals - Principle 1 & 2
3. Governance - Principle 3,4 & 5
4. Risk Management Environment - Principle 6 & 7
5. Monitoring & Reporting - Principle 8
6. Control & Mitigation - Principle 9
7. Business Resiliency & Continuity - Principle 10
8. Role of Disclosure - Principle 11
9. Operational Risk Capital Calculation Methodologies

This module will go into Operational Risk best practice as set out in Basel III, an international guideline for risk management.

International Regulatory Framework for Operational Risk - Basel III

1. Loss Data Collection
2. Risk Control & Self Assessment (RCSA)
3. Scenario Analysis
4. Key Risk Indicators
5. Measurement & Modeling
6. Reporting

In this module, participants will deep dive into operational risk capital calculation using the AMA.

Operational Risk Calculation - Advanced Measurement Approach (AMA)

1. Risk/ Threat Analysis
2. Business Impact Analysis
3. Developing Business Continuity Plan (BCP)
4. Testing & Updating BCP
5. Socialization of BCP

In this module, participants will learn the proper steps of conducting Business Continuity Management from analyzing risks, creating BCP, BCP testing and socialization.

Business Continuity Management

1. Role of OJK in Operational Risk Regulation
2. Notable Regulations
3. Operational Risk Capital Calculation Methodology as Suggested by OJK

In this module, participants will learn about the operational rsik regulatory framework implemented in Indonesia.

Indonesia Risk Regulatory Framework for Operational Risk

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

Post-Test (30 Questions - Closed Book)

Participants will be provided a case, asked to discuss in a group setting and present their findings to the other groups.