Advanced Operational Risk Management

3 days 5-7 Dec 2016, London UK £3,645.00 + VAT* Download brochure Add to basket

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Explore all aspects of operational risk management and its challenges in the financial services industry

Course Overview:

From regulation to culture, the course covers in breadth and depth all aspects of operational risk management and its challenges in the financial services industry. Hot topics such as, selection and reporting of leading KRIs, demonstrating business value of risk management, regulatory compliance gaining and the formulation of a risk appetite statement are detailed and debated. Uprising topics like risk connectivity, reporting of aggregate measures and conduct risk monitoring are also covered.

Key Areas Covered

By attending this practical 3-day course, participants will learn:

  • All best practices in operational risk management for financial companies
  • Highlight of key regulatory expectations including Conduct risk
  • Effective tools to identifications risks and scenarios
  • Sound methodologies for scenario analysis and assessment of rare events
  • Structure method to identify and design leading key risks indicators
  • Root cause analysis for better control design
  • Typology and essential controls for human error
  • Formulate risk appetite and tolerance statements
  • Reporting on aggregate metrics
  • Risk connectivity and risk maps
  • Influencing risk culture

Who should attend


  • Head of Operational Risk & Operational Risk Directors
  • Operational Risk Managers
  • Quality Assurance Managers
  • Head of Operations and Operations Managers
  • Compliance Officers and Directors
  • Consultants and Contractors
  • Internal Auditors
  • Regulators


We work with a series of expert instructors, please select the course location of interest to review the credentials of who will be delivering the programme.

Ariane Chapelle
The Course Director has shared her career between the academic world and the financial industry where she held responsibilities successively in internal audit, credit risk and operational risk management. She is a tenured associate professor of Finance at the Solvay Business School (Belgium) and class tutor of the masters in finance at London Business School (UK). 

The instructor holds a PhD in Economics, a master in Econometrics and a master in Management Science from the University of Brussels (ULB). She continues researching on operational risk and she has published a book on operational risk and written several scientific articles on risk management. She is a member of the GARP (Global Association of Risk Professionals) and of the IOR (Institute of Operational Risk).



Central London Hotel Venue

All courses are held at four or five star venues in Central London, Zone 1. We strive to provide you with a training environment of the highest quality, to ensure that the whole learning experience exceeds your expectations.

Your training venue will be confirmed by one of our course administrators approximately 3-4 weeks before the course start date.

Related Courses


We can bring this course to your company's office.

If you simply want to run this course at a location convenient to you or if you want a completely customised learning solution, we can help.

We produce learning solutions that are completely unique to your business. Our tailored learning solutions are designed specifically for your organisation’s needs.

We’ll be here to support you every step of the way. From the initial consultancy through to evaluating the success of the full learning experience. We'll ensure you get the maximum return on your training investment.

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Day 1

Operational Risk Framework and Maturity Level

  • Risk Management Framework
  • Three levels of Operational Risk Management: Strategic, Tactical, Dynamic
  • Risk Management: completeness vs. maturity
  • The ORM pyramid: which level are you at?

Workshop: The ORM pyramid - define and discuss your maturity level in ORM

Governance and Implementation

  • Governance of Operational Risk
  • 1st line and 2d line: The partnership model
  • Make the risk committees effective
  • Business value of ORM
  • The invisible Framework

Workshop: Build a business case for risk management

Risk Identification and Connectivity

  • Tools and techniques for risk identification
    - Exposures and Vulnerabilities
    - The Risk Wheel
    - Value drivers and reverse stress testing
  • Risk register: a list
  • Risk connectivity: network of risks
  • World economic forum: risk map

Class exercise: Identify the network of your top risks and class feedback

Risk Appetite Definition, Statement and Communication

  • Industry guidance on Risk Appetite
  • Definition and Governance: Communicating Risk Appetite
  • Risk Appetite & Tolerance Statements: examples and case studies
  • Template for actionable risk appetite
  • Cascading and Monitoring Risk Appetite: indicators and dashboards

Class Exercise: Write risk appetite and tolerance statements for two of your top risks

Day 2

Internal Controls: Human Error and Control Design

  • Slips and mistakes: Typology and causes of human errors (J. Reason)
  • HRA: Human Reliability Analysis and other methods
  • Understand and treat the causes of human error
  • Effective or Illusory controls
  • Prevention by Design

Group Work: Best and worst controls in the business: sharing of experience

Risk and Control Self Assessments

  • Definition and rules for RCSAs
  • Tool: Impact / probability matrix: shapes and forms, definitions
  • Usage and choice when defining RCSAs
  • Risk rating: when and how

Exercise: Highlight and assess your top risks before and after controls

Root Causes Analysis – the Bow-Tie

  • Root cause analysis: tool and method
  • Benefits of root cause analysis: tracking the common failures and systematic patterns
  • Treating causes over symptoms
  • Bow-tie: a most effective tool to define
    - Preventive and corrective controls
    - Leading KRIs
    - Risk likelihood and expected impact

Exercise: Apply the bow-tie to one of your incident; share the lessons learnt

Designing and Selecting Preventive Key Risk Indicators

  • KRI, KPI, KCIs: concepts, overlaps and examples
  • Essential features of preventive KRIs
  • KRI Typology: four categories of preventive KRIs
  • KRI Design
  • Six steps for preventive KRIs: exercises
  • Examples of leading KRIs
  • Exercises: Define your own KRIs step by step

Day 3

Regulation, Culture and Scenarios

Regulatory Development: TSA, AMA and Conduct

  • Basle’s eleven principles for sound ORM: a benchmark
  • AMA under revision: current status
  • Conduct: definition and regulatory expectations
  • Monitoring conduct: case studies
  • Modelling conduct: latest research

Group discussion and sharing of experience

Aggregate or Escalate: Risk Reporting

  • Modern issues on events and risk reporting: the regulator’s view
  • Analysing operational risk data: get insight
  • Risk reporting: find the angle
  • Management information: the “reporting cake”
  • Aggregate and escalate risk information: your options

Highlights of best practice, group discussion and sharing of experience

Scenario Analysis and Planning

  • Steps and governance of scenario analysis
  • Tackling behavioural biases in scenario assessment
  • Assessing probabilities of rare events: fault trees
  • Acting on Scenario Analysis

Workshop: Assessing probabilities for rare events

Implementing the Desired Risk Culture: a Method

  • Defining Risk Culture
  • Acting on behaviours: the Influencer
  • Necessary conditions: willingness and ability
  • Risk Culture: DESIRE steps: Define – Inspire – Support – Enable – Reinforce - Evaluate
  • Assessing the risk culture

Group Work: Plan your own culture change


  • What have you learnt?
  • What will you remember?
  • What will you apply?

End of Course

Why us

We have a combined experience of over 60 years providing learning solutions to the world’s major organisations and are privileged to have contributed to their success. We view our clients as partners and focus on understanding the needs of each organisation we work with to tailor learning solutions to specific requirements.

We are proud of our record of customer satisfaction. Here is why you should choose us to help you achieve your goals and accelerate your career:

  • Quality – our clients consistently rate our performance ‘excellent’ or ‘outstanding’. Our average overall score awarded to us by our clients is nine out of ten.
  • Track record – we have delivered training solutions for 95% of worlds’ top 100 banks and have trained over 250,000 professionals.
  • Knowledge – our 150 strong team of industry specialist trainers are world leading financial leaders and commentators, ensuring our knowledge base is second to none.
  • Reliability – if we promise it, we deliver it. We have delivered over 20,000 events both in person and online, using simultaneous translation to delegates from over 180 countries.
  • Recognition – we are accredited by the British Accreditation Council and the CPD Certification Service. In an independent review by Feefo we scored 96% on service and 95% on product