Chase Cooper NY Certified Operational Risk Practitioner Course

1. Chase Cooper Certificate for
Enterprise Operational Risk Management
GCU Campus, 64 Wooster Street NYC, NYC 10012, USA
29th April to 1st May 2014
A 3 day intensive course that provides a technical yet practical understanding of ORM for risk
managers, and is designed to improve your knowledge, skills and expertise in risk management
techniques, practises and systems. You will also be eligible to receive certification based on a
successful performance in the exam.
u Recommended reading:
Mastering Operational Risk, co-authored by Tony Blunden and John Thirlwell, Framework Part
(Chapters 3,4,5, and 6).
u Course price
Three day course price: $2,500
Early Bird discount (book before 28 March 2014): $2,200
Course Presenter: Professor Tony Blunden
Tony has worked in the City of London for over 30 years, primarily within risk management, compliance and
related areas in financial services organisations. Prior to joining Chase Cooper as Head of Consulting,Tony
spent four years as a Director in Ernst & Young’s Financial Services Risk Management practice.
As a consultant,Tony has advised and guided clients on risk frameworks and governance, risk and control
assessments, key indicators, loss databases and the benefits of modelling of operational risk data including
stress testing and scenario analysis.
Tony has spoken at over 100 international risk and compliance conferences. A regular speaker for
organisations such as Chartered Institute for Securities & Investment, he is also a well known author of
articles and chapters on risk management and compliance.
His latest book is called ‘Mastering Operational Risk’ published by Financial Times Prentice Hall. He is an
Honorary Professor in the Department of Accounting, Finance and Risk at the Caledonian Business School,
which is part of Glasgow Caledonian University.
The course totals 18 CPD Hours
Day 1: Operational Risk Management Governance / Basic Processes
Module 1:•• Governance covers an overview of operational risk, regulatory requirements and an
overview of ORM Framework
Module 2:•• The basic processes covers capturing RCA data, and using it to establish KRIs and
KCIs and a detailed review of Event and loss analysis
Day 2: Advancing the process / Modelling OR
Module 3:•• Advancing the process includes developing stress testing and scenario analysis,
external data and managing reputation risk and damage
Module 4:•• Modelling OR explores the apparent differing modelling approaches and debates the
use of qualitative analysis and combining loss data and qualitative data
Day 3: Operational risk and control appetite / Developing scenarios and reputation
risk management
Module 5:•• Operational risk appetite and control appetite, covers various methodology used
Module 6:•• Pulling it all together covers advanced scenario work and reporting including
designing ORM reports for senior management and heads of department
Chase Cooper is a global
GRC management solutions
provider and leading
accredited provider of bespoke
and public risk and compliance
workshops and courses. All
its courses are delivered by its
senior consultants.
Chase Cooper has trained over
300 financial institutions in
London and overseas.
Contact us:
u Information Hotline:
Tel: 00 212 618 1574
u Address:
Chase Cooper
14 Wall Street
20th Floor
New York, NY 10005
u email:
training@chasecooper.com
u web:
www.chasecooper.com/training
What previous delegates
have said..
“Knowing nothing about risk
management, the course was a
perfect way to cover the entire
length & breath of the subject.”
(Attendee, London, Jan 2014)
“There are a number of useful
takeaways from the course that
will enable our firm to further
develop and strengthen our
operational risk management
framework. I would also like
to take the opportunity to
thank Professor Blunden. He is
extremely knowledgeable and
an excellent teacher.” (from a
Swedish attendee, London,
January 2014)

2. DAY 1
MODULE 1: Operational Risk Governance
08:30 Delegate registration
08:45 Introduction to the course
09:00 1.1: Overview of operational risk
What is operational risk?••
How does it fit into a bank’s overall risks?••
Why do banks manage their operational risks?••
Examples of operational risks••
Table session and feedback••
10:00 1.2: Regulatory requirements for operational risk
Basel II definition of operational risk••
Overview of Basel II measurement approaches:••
Basic Indicator Approach (BIA)--
The Standardised Approach (TSA)--
Advanced Measurement Approach (AMA)--
Basic criteria for using the measurement approaches••
Capital Adequacy Assessment••
BCBS - Principles for the Sound Management of••
Operational Risk
Additional qualitative standards for AMA••
Operational risk disclosure••
Table session and feedback••
11:00 Coffee
11:15 1.3: Overview of ORM Framework
What are the key components of an operational risk••
management framework?
How does a bank implement an operational risk••
framework?
What is the role of the board and risk committee?••
What is the role of management?••
What is operational risk appetite?••
Table session and feedback••
12:30 Lunch
MODULE 2: Basic Processes
13:30 2.1 Capturing RCA data and using it
Approaches to RCA work••
Risk identification and assessment••
Mitigating risks••
Assessing controls••
Control types and their effect on risks••
Challenging RCA scores for consistency••
Using the RCA data for risk appetite••
Table session and feedback••
14:45 Coffee
15:00 2.2 Establising KRIs and KCIs
Indicators: a simple explanation••
The KRI process flow••
Approaches to KRI identification, and how to start••
Thresholds and risk appetite••
Reporting KRI data••
Predictive indicators••
Table session and feedback••
16:15 2.3 Event and Loss Analysis
Causes, events and effects••
Types of losses••
Regulatory commentary••
Loss data useful for benchmarking••
Using loss data: anonymised examples••
Near misses••
Event causal analysis process flow••
Table session and feedback••
17:30 End of Day One
Course detail
The training and development programme is both theoretical and practical. Numerous (anonymised) real life examples from
different financial services firms will be used to illustrate the principles.
Each Module will use a stimulating combination of real life experience and clear realistic examples. The trainer will draw on his broad
and deep experience of operational risk to provide you with thought-provoking and motivating presentations and questions. You
will gain an understanding of operational risk during the training that is a distillation of many years of experience. You will also be
able to benchmark the organisation you work for against the many industry examples that will be given. The focus will be practical,
rather than theoretical, with a considerable number of anonymised and incisive client examples.
The style of all three days will be participative and inclusive, encouraging learning through the application of each newly acquired
(or newly reinforced) skill.
The training program will also include an exam to confirm that active participation and a reasonable level of understanding of the
concepts were achieved during the training sessions.
Proposed Agenda and Indicative Timing for each day

3. DAY 3
MODULE 5: Operational risk and control appetite
08:30 Coffee
09:00 5.1: Operational risk appetite
Concepts of operational risk appetite••
Whose appetite is it anyway?••
Appetite governance••
Discussion session••
Using a consistent methodology••
Ways to describe operational risk appetite••
How can it be measured?••
Table session and feedback••
10:15 5.2: Control appetite
What is control appetite?••
Causes effects and control appetite••
Link to governance••
11:15 Coffee
MODULE 6: Developing scenarios and reputation risk
management
11:30 6.1 Advanced scenario work
Interpreting stress testing in the context of operational••
risk management
Developing and selecting scenarios and stress tests••
Typical scenarios (from BCBS)••
Common scenarios (from BCBS)••
Scenarios from random (operational risk) words••
Applying and effecting scenarios and stress tests••
Using a scenario developed above••
Results and lessons••
13:00 Lunch
14:00 6.2 Designing ORM reports for senior management
and heads of department
Regulatory commentary••
Basic principles••
Before you begin••
Report definition••
Example reports••
Presentation is everything!••
Table session and feedback••
15:15 Coffee
15:30 Test
17:00 Networking
18:00 End of Day Three
DAY 2
MODULE 3: Advancing the process
08:30 Coffee
09:00 3.1: Developing stress testing and scenario analysis
Interpreting scenario analysis in the context of ORM••
What is it?--
Thedifferencebetweenstresstestingandscenarioanalysis--
Regulatory commentary--
Developing scenarios••
Applying scenarios to ORM••
Table session and feedback••
10:15 3.2: External data: useless or useful
What is external data?••
What are the main concerns?••
What value do they add?••
Benchmarking--
Conditioning--
Scaling--
How can they be used:••
for qualitative work?--
for modelling?--
11:15 Coffee
11:30 3.3: Managing reputation risk and damage
Different stakeholders••
Reputation and Brand••
Who is responsible?••
Coordinating a response••
Identifying and assessing reputational risk••
Reputational risk controls••
When it does happen…••
12:30 Lunch
MODULE 4: Modelling OR
13:30 4.1 Exploring the apparent differing modelling
approaches
Examine past and current approaches••
Review their essential features••
Consider their opportunities and problems••
Assess common ground••
Comparing TSA and AMA••
14:45 Coffee
15:00 4.2 Qualitative analysis: Business benefits or is it all
too woolly?
Examine why most firms do not model qualitative data••
Consider what qualitative data is required for modelling••
Look at how qualitative data can be modelled••
Review typical output from qualitative data modelling••
Analyse the business benefits••
Table session and feedback••
16:15 4.3 Combining loss data and qualitative data: Leaving
the theory behind
Where to start the convergence••
The practical challenges of combining the approaches••
Using indicators of key risks and controls••
The tail problem••
Using different distributions••
What does it look like in reality?••
Business benefits summary••
Table session and feedback••
17:30 End of Day Two