Enterprise Risk Management (ERM)

4 days 3-6 Apr 2017, Dubai UAE £3,995.00 Download brochure Add to basket
4 days 21-24 Aug 2017, London UK £4,295.00 + VAT* Download brochure Add to basket
4 days 30 Oct - 2 Nov 2017, Dubai UAE £3,995.00 Download brochure Add to basket

* Claim back your VAT
Find out more

Request a different date or location for this course (we regularly add courses following requests).

{{alternativeRequestSuccess}}
{{alternativeRequestError}}

* Claim back your VAT
Find out more

Overview

This course is about developing and implementing an effective, enterprise risk management (ERM) framework. Delegates will learn the key skillsets required for an effective ERM function, the systems software to be considered and how data should be collected and managed.

Participants will learn:

  • How to define ERM within the firm’s strategic plan
  • Corporate governance and the role of the Board of Directors and Management
  • How to get started and actually implement ERM
  • How to establish a risk appetite and risk profile
  • How to structure and develop a sound enterprise risk management framework

Please select the location where you would like to attend the training programme for the course agenda. 

Who should attend

 

  • Senior executives
  • Board members
  • Risk managers
  • Risk analysts
  • Auditors
  • Accountants
  • IT personnel

Instructors

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.

London
Maurice Ewing

The course instructor holds a PhD, is an experienced executive, Chief Risk Officer (CRO), board member and consultant. He is the founder and CEO of Conquer Risk, a consulting firm that conducts investment due diligence of corporates and banks, specialising in emerging and frontier markets. Until recently, the instructor held the group CRO role for one of Africa's largest banks for which he developed the entire enterprise risk management (ERM) and risk oversight functions, sitting on the board and managing over 400 people within 10 departments, spanning 5 countries. He is a sought after speaker on risk oversight, strategy and corporate governance but has also trained numerous management teams in predictive analytics, market intelligence acquisition and internal model development for Basel II & Basel III purposes. He previously taught Executive-MBAs on the full-time finance faculty of the Kellogg-HKUST business program and, before that, worked as a regulator for both the New York Federal Reserve and the Board of Governors. A former dissertation advisee of Ben Bernanke, the US Federal Reserve Chairman, the instructor holds a PhD and MA in economics from Princeton University and a BA in Economics and Mathematics from Northwestern University. He was recently selected out of over 50,000 candidates to the prestigious board of the Professional Risk Manager's International Association as a Subject Matter Expert on ERM. He is also a certified Financial Risk Manager (FRM) with the Global Association of Risk Professionals.

Dubai
Maurice Ewing

The course instructor holds a PhD, is an experienced executive, Chief Risk Officer (CRO), board member and consultant. He is the founder and CEO of Conquer Risk, a consulting firm that conducts investment due diligence of corporates and banks, specialising in emerging and frontier markets. Until recently, the instructor held the group CRO role for one of Africa's largest banks for which he developed the entire enterprise risk management (ERM) and risk oversight functions, sitting on the board and managing over 400 people within 10 departments, spanning 5 countries. He is a sought after speaker on risk oversight, strategy and corporate governance but has also trained numerous management teams in predictive analytics, market intelligence acquisition and internal model development for Basel II & Basel III purposes. He previously taught Executive-MBAs on the full-time finance faculty of the Kellogg-HKUST business program and, before that, worked as a regulator for both the New York Federal Reserve and the Board of Governors. A former dissertation advisee of Ben Bernanke, the US Federal Reserve Chairman, the instructor holds a PhD and MA in economics from Princeton University and a BA in Economics and Mathematics from Northwestern University. He was recently selected out of over 50,000 candidates to the prestigious board of the Professional Risk Manager's International Association as a Subject Matter Expert on ERM. He is also a certified Financial Risk Manager (FRM) with the Global Association of Risk Professionals.

Venue

Dubai

Dubai Finance

This programme takes place on a non-residential basis at a central 4 to 5* Dubai hotel. Non-residential course fees include training facilities, documentation, lunches and refreshments for the duration of the programme. Delegates are responsible for arranging their own accommodation, however, a list of convenient hotels (many at specially negotiated rates) is available upon registration.

London

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

Inhouse


 

Do you have five or more people interested in attending this course? Do you want to tailor it to meet your company's exact requirements? If you'd like to do either of these, we can bring this course to your company's office. You could even save up to 50% on the cost of sending delegates to a public course.

To find out more about running this course in-house:





Our Tailored Learning Offering

If you 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. We'll guide you through the whole process, from the initial consultancy to evaluating the success of the full learning experience. Our learning specialists ensure you get the maximum return on your training investment.



We can offer any of our public courses delivered at your office or we can devise completely tailored solutions:


Read more about our offering or complete a call back request to speak to a learning specialist.

 

Agenda

Agendas are localised, please select your preferred location.

Day 1

The current state of risk management will be discussed. The current situation faced by many countries and the impact on businesses  within these countries will be reviewed. This will be followed by a discussion and review of the structure of risk management and the introduction of the case studies.

Review of the current state of Risk Management

  • The world-wide economic crisis. Its causes and effects.
  • Going back to the beginning: a review of how the seeds were planted for the current crisis and how it spread throughout the world.
  • The failures associated with risk management and the reactions.
  • There are many failures that occurred in risk management programmes. These failures will be reviewed and discussed for their impact on the future of risk management.
  • The future of risk management from both the legislated and practical aspects.
  • Crisis Review
  • The Nigerian Regulatory changes.
  • In August 2009, the Central Bank of Nigeria (CBN) conducted a special audit of the Nigerian Banks, resulting in significant changes at approximately half of the Banks. Why did the CBN do this? What was the result?
  • The Risk Management failures at BP.
  • BP had a robust risk management programme. What went wrong and how did it lead to the failure in the Gulf of Mexico?
  • The crisis in Greece.
  • What caused the collapse of confidence in Greece?
  • How did it affect the financial institutions in Greece?
  • How do systemic issues affect financial institutions?

The concepts of risk

  • Defining Risk – A Primer
  • How you define risk determines how you will measure and manage it. The discussion of risk will begin with the concepts of probability and certainty, with examples provided for each. Statistical concepts like correlations and coefficients will be reviewed in order to establish the set of definitions.
  • Risk definitions will be presented and discussed with an emphasis on relating the definitions back to practical Enterprise Risk Management (ERM) and Value examples. The discussion will begin at the level of Systemic and Organization Specific Risk, as well as; Credit, Market and Operational Risk. A full group of subset definitions will be presented and covered.
  • Cash flow volatility will be reviewed as a key determinant in building an ERM programme.
  • The strategic plan is the basis for the risk management activities of the organization. This agreement between the Board of
  • Directors and Management regarding future events and activities the company will participate in is critical to an effective ERM programme.
  • Establishing the risk appetite quotient
  • Using a case study as the basis, the development of the risk appetite will be focused on. This appetite, which links back to cash flow volatility, establishes the first set of parameters used by the organisation in the ERM programme. These parameters create the focus for ERM and is the first step in determining its effectiveness and influence in the company. Components of the risk appetite development include;
  • Projected cash flows and profitability.
  • The establishment of a hurdle rate for pending projects and established services.
  • Correlations between different activities.
  • Capital deployment and leverage.
  • The current level of risk faced by the company.
  • As a concurrent activity, it is important to build the baseline for ERM within the organisation.


Day 2

Basel II, Solvency II and Capital Management.

On day 2, the significant changes imposed by the implementation of Basel II will be explored, as well as the insurance industry’s Solvency II initiative currently being developed and implemented. Capital
requirements.

  • Basel II
  • Defining Basel II – Why was it developed? What are the changes being implemented? What does it mean for a financial institution?
  • The role of capital in risk management.
  • The three pillars of Basel II (to be explored in detail on day 3).
  • Solvency II
  • Defining Solvency II.
  • Understanding the impact on the insurance industry.
  • Capital
  • The different roles of capital.
  • Capital management.
  • Using capital management as a risk management tool.

Day 3

Credit, Counterparty, Market and Operational Risk


On day 3, the specific risk categories will be covered. The principals of the regulatory oversight of Basel II and III will be addressed. Capital as a tool will be introduced.

  • Credit and Counterparty Risk
  • Building a credit risk programme. Refining your approach to credit risk management.
    Stress testing the loan portfolio.
  • Market Risk
  • Understanding the concepts of market risk, including interest rate risk and liquidity risk.
  • Illiquidity will be explored in conjunction with a rapidly changing market.
  • Operational Risk
  • Building and defining an Operational Risk Management programme.
  • Operational risk analytics and their link to controls and audit.
  • Basel III - The changes to capital requirements as a result of the crisis.


Day 4

Using the Risk Management Programme for Value Creation

Circling back to Day 1, the linkage between ERM and Value Creation will be explored. Concepts like Economic Value Added (EVA) and Risk Adjusted Return of Capital are examined and applied to Risk Management.

  • Capital: Its various definitions and how it is deployed in an organisation.
  • EVA an overall view.
  • RARoC.

Case studies will be used throughout the programme to highlight the learning points.

Course summary and close


 

Day 1


Introduction and Overview

Modern Risk Management Vs Traditional Risk Management

  • What is risk management?

            - Problems with the definition
            - Traditional role of risk vis-a-vis the board and executive management

  • What’s needed?
  • Enterprise risk management

            - Definitions: COSO & CAS
            - Risk as strategic-enabler
            - Risk, EXCO and the board

  • Some ERM basics

            - Dynamic notion of risk
            - Risk as the state of information
            - Risk exposure types
            - Aggregating exposure across the enterprise
            - The risk profile
            - Risk exposure to performance and strategy

Aligning ERM and the Business Model

  • Case discussion

Roles and Responsibilities in ERM

  • Board oversight and the risk appetite
  • Executive management use of ERM for navigation
  • CRO responsibilities

Case Exercises

  • The global petroleum case
  • The Russian frozen-chicken case

Homework: Home Depot Case Study


Day 2



Review of Day 1’s Concepts

Group Discussion of Homework

  • Insights from the case study

Establishing ERM: Key Ingredients

A Risk Executive: The Chief Risk Officer

  • Establishing the Chief Risk Officer
  • Comparing the CRO to the traditional Head of Risk

The CRO’s Risk Function

  • Key people
  • Tools
  • Systems

The ERM Process Implemented by the CRO

  • In-class exercise and discussion on the ERM

Process
Homework: Positioning the Chief Risk Officer for Success Reading


 

Day 3



Recap of Day 2

The CRO’s Toolkit

  • VaR and Tail loss measures
  • Risk adjusted performance measurement (RAPM): a primer

            - Various RAPM measures compared and objectives defined
               - Risk-Adjusted Return on Capital (RaROC)
               - Risk-Adjusted-Return on Risk-Adjusted Capital
               - (RaROROC)
            - RAPM from an individual perspective
            - RAPM from a portfolio perspective
            - RAPM using capital allocations for market, credit and operational risks
            - Examples in Excel

  • The SWOT Matrix
  • Heat maps/risk matrices
  • Quantifying severity and frequency
  • Aggregation of risks
  • Dashboards
  • Setting the risk profile and the risk appetite with the tools

Key Ingredients: The Board Risk Committee

  • The Risk Committee’s design and function
  • Risk Committee Charter
  • Ideal elements of the Risk Committee meeting

Case Discussion: Positioning the Chief Risk Officer for Success

Homework: Implementing ERM


 

Day 4


Discussion of Implementing ERM Homework

  • Agreeing on the business model
  • Creating risk categories with owners and users
  • Identification of risks in categories
  • Develop a Standard Management Process
  • Implement the process manually
  • Build the ERM Knowledge warehouse

Hurdles to ERM Establishment and Implementation

  • High-level difficulties

            - Senior-management buy-in
            - Conglomerate nightmares
            - Merger problems/benefits

  • Technical difficulties

            - Getting model results for market, credit and operational risk to coincide
            - Difficulties with combining model inputs
            - Difficulties in combining model outputs

Getting an ERM function underway in 6 months

Concluding remarks

Course summary and close

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