DUBLIN--(BUSINESS WIRE)--Research and Markets (http://www.researchandmarkets.com/research/sltjkn/operations_risk) has announced the addition of the "Operations Risk Management and Mitigation - From Assessment to Implementation: 2-Day In-Person Seminar (2nd/3rd September 2015)" conference to their offering.
Recently, a series of headline-grabbing operational risk incidents at banks, other financial institutions and even regulators have again brought the issue of operational risk management to the forefront of the agendas of CEOs, CROs, risk managers and internal and external auditors alike. These incidents are wide ranging and flow from bank ATM collapses, bank operating system failures, regulatory settlements in the ongoing US sub-prime mortgage saga, rogue traders and the connected risk managers who either missed or were willfully blind to all the warning signs.
As the size and complexity of financial institutions have increased, so too have the challenges of understanding and reducing operational risks down to truly manageable levels. Increased regulatory concern and scrutiny have also increased the cost of operational risk events in the shape of outright financial loss, regulatory fines and declining customer confidence.
Operational Risk Management (ORM) is an effective tool for not only maintaining but increasing, bank profits, shareholder value, public perceptions and goodwill. Executed properly, improvements in ORM can lead to substantial financial, reputational and regulatory benefits - all this adds to increased profitability, greater financial stability and improved customer satisfaction. But to achieve these gains, financial institutions must apply a consistent and comprehensive approach to managing their operational risks. They must also understand that this approach is fundamentally different from the approaches that they use in managing market, credit and liquidity risks.
Bad Operational Risk Management has a severely negative effect on financial institutions in four very clear ways:
- Actual operational risk losses are a direct hit to the income statement.
- The market punishes companies, via the stock price, for operational risk failures and this loss could well exceed the actual financial loss experienced.
- Lowered Credit Ratings, which raises the institutions cost of borrowing money in the marketplace.
- Operational risk failures can vastly increase the cost of compliance by raising the level of regulatory scrutiny and complexity not to mention substantial penalties.
Key objectives and learning outcomes
The aim of the course is to provide:
- Illustrate risk in all its facets
- What the Basel Accords say about operational risk and its mitigation
- Listing operational risk techniques for assessing, managing and mitigating operational risk
- A link between ORM theory and practice
- A clear road-map on how to implement an ORM structure in practice in a banking organization
For more information visit http://www.researchandmarkets.com/research/sltjkn/operations_risk