The document discusses operational risk management and business continuity planning requirements for banks as per SBP regulations. It defines operational risk and provides tools and techniques for risk identification and assessment, including risk control self-assessments, key risk indicators, and collection of internal loss data. It also outlines roles and responsibilities for operational risk management coordinators, provides examples of inherent risk assessments, controls, key risk indicators and thresholds, and discusses approaches for calculating regulatory capital charges.
The document discusses operational risk and provides guidance on defining, identifying, measuring, monitoring, controlling, and mitigating operational risk according to the Basel Committee on Banking Supervision. It addresses issues with operational risk loss data and outlines principles for developing an appropriate operational risk management environment, process, and framework. The document also examines challenges with using internal and external loss data for quantifying operational risk capital requirements.
Operational risk management and measurementRahmat Mulyana
a short description in mixed English and Bahasa Indonesia on Operational Risk Management and Measurement, in particular value at risk calculation using Monte carlo Simulation. Another method using EVT (Extree Value Theory) will be delivered shortly. regards
The document outlines the National Bank of Malawi's operational risk management framework. It discusses the operational risk policy, roles and responsibilities of the board, management, and risk division. It describes the bank's approach to identifying, assessing, monitoring, and controlling operational risk. The bank has adopted the Basic Indicator Approach to measure operational risk capital charge and has developed business continuity plans to prepare for disasters. The presentation also discusses operational risk incident management guidelines and roles in reporting and addressing incidents.
The document provides an overview of an operational risk course. The course objectives are to introduce key aspects of operational risk, including definitions, importance of control and quantification, and regulatory frameworks. It outlines course modules that will cover topics such as risk identification, measurement, management tools, and case studies. It also summarizes perspectives on operational risk from industry practitioners, including approaches to improving financial performance and creating a "no surprise" environment through better risk management.
Operational Risk Management under BASEL eraTreat Risk
Operational risk have always ignored by Banks as they thought Credit and market risks can cause catastrophe. But history of misfortunes taught us different lessons. Controls and internal audit have long been construed as guard till BASEL II dictates forced banks to look with insight. Understand the dimension of ORM in this presentation.
Operational Risk Management - A Gateway to managing the risk profile of your...Eneni Oduwole
This document provides an overview of operational risk management (ORM). It defines operational risk and ORM, outlines the core principles and framework of ORM. It describes the elements of ORM including people, process, system and external risks. It discusses ORM procedures such as risk and control self-assessment, key risk indicators, and loss incident reporting. It also introduces some common ORM tools and highlights the benefits of implementing ORM such as improved quality, cost savings, stability of earnings and enhanced competitive position.
operations risk management power point presentation.Miyelani Shibambo
Operational risk can result in losses from internal failures or external events. It is classified based on frequency and impact of events. Management typically focuses on low frequency/high impact events and high frequency/low impact events. The Basel Accords define three approaches to operational risk capital requirements: Basic Indicator, Standardized, and Advanced Measurement. The Standardized Approach divides business activities into eight lines and assigns a beta multiplier to each line's gross income. The Advanced Measurement Approach uses banks' internal models to calculate regulatory capital.
This document discusses operational risk management. It begins by defining risk management and the types of risks, including operational risk. It then discusses why operational risk management is important, highlighting some significant operational risk events. It describes tools for identifying and monitoring operational risk, such as loss data collection, risk and control self-assessments, and key risk indicators. It also discusses approaches for measuring operational risk capital requirements under Basel II and III, including the basic indicator approach, standardized approach, and advanced measurement approach. Finally, it notes some challenges in measuring operational risk and ways to mitigate and control operational risk exposures.
The document discusses operational risk and provides guidance on defining, identifying, measuring, monitoring, controlling, and mitigating operational risk according to the Basel Committee on Banking Supervision. It addresses issues with operational risk loss data and outlines principles for developing an appropriate operational risk management environment, process, and framework. The document also examines challenges with using internal and external loss data for quantifying operational risk capital requirements.
Operational risk management and measurementRahmat Mulyana
a short description in mixed English and Bahasa Indonesia on Operational Risk Management and Measurement, in particular value at risk calculation using Monte carlo Simulation. Another method using EVT (Extree Value Theory) will be delivered shortly. regards
The document outlines the National Bank of Malawi's operational risk management framework. It discusses the operational risk policy, roles and responsibilities of the board, management, and risk division. It describes the bank's approach to identifying, assessing, monitoring, and controlling operational risk. The bank has adopted the Basic Indicator Approach to measure operational risk capital charge and has developed business continuity plans to prepare for disasters. The presentation also discusses operational risk incident management guidelines and roles in reporting and addressing incidents.
The document provides an overview of an operational risk course. The course objectives are to introduce key aspects of operational risk, including definitions, importance of control and quantification, and regulatory frameworks. It outlines course modules that will cover topics such as risk identification, measurement, management tools, and case studies. It also summarizes perspectives on operational risk from industry practitioners, including approaches to improving financial performance and creating a "no surprise" environment through better risk management.
Operational Risk Management under BASEL eraTreat Risk
Operational risk have always ignored by Banks as they thought Credit and market risks can cause catastrophe. But history of misfortunes taught us different lessons. Controls and internal audit have long been construed as guard till BASEL II dictates forced banks to look with insight. Understand the dimension of ORM in this presentation.
Operational Risk Management - A Gateway to managing the risk profile of your...Eneni Oduwole
This document provides an overview of operational risk management (ORM). It defines operational risk and ORM, outlines the core principles and framework of ORM. It describes the elements of ORM including people, process, system and external risks. It discusses ORM procedures such as risk and control self-assessment, key risk indicators, and loss incident reporting. It also introduces some common ORM tools and highlights the benefits of implementing ORM such as improved quality, cost savings, stability of earnings and enhanced competitive position.
operations risk management power point presentation.Miyelani Shibambo
Operational risk can result in losses from internal failures or external events. It is classified based on frequency and impact of events. Management typically focuses on low frequency/high impact events and high frequency/low impact events. The Basel Accords define three approaches to operational risk capital requirements: Basic Indicator, Standardized, and Advanced Measurement. The Standardized Approach divides business activities into eight lines and assigns a beta multiplier to each line's gross income. The Advanced Measurement Approach uses banks' internal models to calculate regulatory capital.
This document discusses operational risk management. It begins by defining risk management and the types of risks, including operational risk. It then discusses why operational risk management is important, highlighting some significant operational risk events. It describes tools for identifying and monitoring operational risk, such as loss data collection, risk and control self-assessments, and key risk indicators. It also discusses approaches for measuring operational risk capital requirements under Basel II and III, including the basic indicator approach, standardized approach, and advanced measurement approach. Finally, it notes some challenges in measuring operational risk and ways to mitigate and control operational risk exposures.
This document outlines a risk management module that describes the risk management lifecycle and procedures for managing risk. It discusses introducing risk management and identifying risk categories. It then covers the full procedure for managing risk, including planning, identification, assessment, monitoring, and tracking. It also addresses stakeholder engagement, including risk appetite and tolerance. Finally, it discusses tools and practices for risk analysis, impact analysis, risk mitigation strategies, and qualitative and quantitative analysis. The overall document provides an overview of a comprehensive risk management process.
Operational risk can arise from inadequate or failed internal processes, people and systems or from external events. It can be measured using a top-down approach such as the Basic Indicator Approach which calculates capital as 15% of average gross income, or the Standardized Approach which divides activities into business lines each with a factor. A bottom-up approach uses internal loss data but has challenges around position equivalence, completeness, and context dependence. Key risk indicators can also be used to signal potential operational losses.
This document discusses risk management in banks. It outlines the major types of risks banks face: credit risk, market risk, and operational risk. Credit risk is the potential that a bank borrower fails to meet obligations and can take the form of outright default or deterioration in credit quality. Market risk includes liquidity risk, interest rate risk, foreign exchange risk, and country risk due to fluctuations in market values. Operational risk is the risk of loss from inadequate internal processes or systems. The Basel Accords provide capital adequacy guidelines for banks to manage unexpected losses from risks based on their risk profiles. Risk management in banks involves identifying, measuring, monitoring, and controlling various risks to ensure sufficient capital levels are maintained.
This document discusses developing an effective Internal Capital Adequacy Assessment Process (ICAAP). It outlines the key components of an ICAAP including risk governance, risk appetite, risk-bearing capacity, material risk assessment, capital modeling, forecasts and stress testing. It discusses challenges in implementing an ICAAP and the roles of risk management, finance, internal audit and senior management/board oversight. Maintaining an ongoing and regularly reviewed ICAAP is emphasized.
This document summarizes a webinar presented by Mike Lubansky on stress testing loan portfolios. The webinar covered regulatory requirements for stress testing, the objective and importance of stress testing, different types of stress testing approaches for community banks, challenges with data collection, scenario selection, and maximizing the value of stress test reports. Sample stress test outputs were presented and common mistakes were discussed. The webinar provided an overview of effective stress testing practices for community banks.
This document discusses operational risk and key risk indicators (KRIs). It defines operational risk and provides examples of operational risk losses from past incidents. It explains that KRIs are metrics that provide information on an organization's current exposure level to a given operational risk. The document outlines the process for identifying KRIs, which involves risk and control self-assessments to identify inherent risks, controls, and residual risks and prioritize them. It also discusses setting thresholds for KRIs, collecting and reporting KRI data, and the roles involved in managing the KRI process. Examples of potential KRIs are provided for credit risk, financial markets activities, and other operational risks.
Operational risk is the risk of loss from failed internal processes, people, systems or external events. It is embedded in all bank activities and processes. Major types of operational risk include internal and external fraud, workplace issues, damage to physical assets, business disruptions, client/product issues, and legal risks. Common operational risk events in banking include losses from internal fraud, external fraud, improper sales practices, physical damage, system failures, and failed transaction processing. The document outlines approaches for quantifying and measuring operational risk, including the Basic Indicator Approach, Standardized Approach, and Advanced Measurement Approach. The Advanced Measurement Approach, which uses internal loss data and assessment methods, is most beneficial for banks.
Operational Risk Management - Understanding Your Risk LandscapeEneni Oduwole
This presentation provides insights on how the proper implementation of Operational Risk Management can lead to effective risk profiling, analysis and mitigation. It introduces operational risk as a bedrock for meaningful risk management irrespective of which industry an organization plays in.
Riskpro is an operational risk management consulting firm with offices in Mumbai, Delhi, and Bangalore. It aims to provide integrated risk management solutions to mid-large sized companies in India. Riskpro's team has over 200 years of cumulative experience in risk management. It offers a variety of services including Basel II/III advisory, operational risk consulting, risk training, and recruitment of risk professionals.
This document discusses operational risk management. It begins by defining operational risk and providing examples of operational failures. It then outlines the key aspects of operational risk management: identification, measurement, monitoring, and mitigation. Measurement techniques like historical simulation and Monte Carlo simulation are described. Key risk indicators are discussed as a tool for monitoring operational risk on an ongoing basis. The document provides guidance on identifying, quantifying, and managing operational risk.
Risk management involves identifying, assessing, and prioritizing risks, whether positive or negative, to minimize threats and maximize opportunities. It determines the maximum acceptable level of risk for an activity and develops strategies to reduce risks. Risks can come from many sources, including financial markets, project failures, legal issues, accidents, and deliberate attacks. Risk management evaluates the probability of an unwanted event occurring and its potential consequences.
Sharing Practice on Enterprise Risk Management (ERM)Diane Christina
The document discusses enterprise risk management (ERM). It provides an example ERM universe that includes strategic risks, physical assets risks, human factors risks, and financial risks. It also discusses some key aspects of effective ERM implementation, including establishing a risk governance framework, developing a risk management infrastructure, and following a risk management process of identifying, assessing, managing, and monitoring risks. The document is intended to share practices on ERM.
Potential misconduct fines are now one of banking’s biggest risks. But now that it can be a large part of operational risk—sometimes, in and of itself, ranking alongside credit and market risk—it’s time to start measuring it. Read this to find out how.
This document discusses enterprise risk management (ERM). It provides definitions of ERM, outlines its conceptual roots dating back to the 1970s-1990s, and describes what ERM is and how it can provide a framework for risk management. The document also discusses key aspects of ERM implementation including risk, uncertainty, risk attitudes, risk management processes and steps, and tools and techniques for risk assessment.
The document provides details on operational risk management and business continuity planning for a bank. It defines operational risk and outlines tools for risk identification and assessment including risk control self-assessments, key risk indicators, and internal loss data collection. It also describes the roles of operational risk coordinators and frameworks for calculating regulatory capital requirements. For business continuity planning, it discusses objectives, potential disruptive events, response procedures, and roles for invoking and recovering from emergencies at branches and alternative backup sites.
This document discusses risk reporting and risk management. It defines risk reporting as communicating risk-related data and facts through reports to the appropriate parties. Effective risk reporting allows for clear communication across an organization. It then describes the objectives, levels, and types of internal and external risk reporting. It also discusses limitations of risk reporting and major types of risk reports. The document also defines risk management, describes types of risks, and methods to manage risks, including avoiding, retaining, transferring, sharing risks, and reducing risks through various financial measures.
Operation Risk Management in Banking SectorSanjay Kumbhar
This presentation discusses operational risk management in the banking sector. It covers topics such as categories of operational risk, risk identification and analysis techniques, key risk indicators, and risk mitigation strategies. The presentation is delivered by five students and contains several sections that outline the flow of topics to be presented.
ALM (Asset Liability Management) involves strategic balance sheet management and managing risks stemming from mismatches between assets and liabilities. It aims to manage liquidity risk, interest rate risk, and profitability. The key risks banks face include credit risk, interest rate risk, liquidity risk, and foreign exchange risk. ALM involves analyzing the composition and maturity profiles of assets and liabilities to control volatility in net interest income and ensure sufficient liquidity. Banks use tools like gap analysis and simulation to measure risks and make decisions around portfolio composition.
The document discusses various aspects of credit risk and risk management in banks. It covers topics like the different types of credit risk, obstacles in credit risk management, methods to reduce credit risks, credit derivatives, securitization process, Basel accords, asset-liability management, capital adequacy ratio, and interest rate risk.
The document discusses operational risk and Basel II regulations. It defines operational risk as losses from internal failures or external events. It outlines the three pillars of Basel II which establish minimum capital requirements, supervisory review, and market discipline. It describes the different approaches for calculating operational risk capital charges, including the Basic Indicator Approach, Standardized Approach, and Advanced Measurement Approach.
Operational Risk : Take a look at the raw canvasTreat Risk
Operational risks by banks have never been recognised till BASEL II imposed on banks to look forward. Take a look at the broad canvas of Operational risks applicable for banks
This document outlines a risk management module that describes the risk management lifecycle and procedures for managing risk. It discusses introducing risk management and identifying risk categories. It then covers the full procedure for managing risk, including planning, identification, assessment, monitoring, and tracking. It also addresses stakeholder engagement, including risk appetite and tolerance. Finally, it discusses tools and practices for risk analysis, impact analysis, risk mitigation strategies, and qualitative and quantitative analysis. The overall document provides an overview of a comprehensive risk management process.
Operational risk can arise from inadequate or failed internal processes, people and systems or from external events. It can be measured using a top-down approach such as the Basic Indicator Approach which calculates capital as 15% of average gross income, or the Standardized Approach which divides activities into business lines each with a factor. A bottom-up approach uses internal loss data but has challenges around position equivalence, completeness, and context dependence. Key risk indicators can also be used to signal potential operational losses.
This document discusses risk management in banks. It outlines the major types of risks banks face: credit risk, market risk, and operational risk. Credit risk is the potential that a bank borrower fails to meet obligations and can take the form of outright default or deterioration in credit quality. Market risk includes liquidity risk, interest rate risk, foreign exchange risk, and country risk due to fluctuations in market values. Operational risk is the risk of loss from inadequate internal processes or systems. The Basel Accords provide capital adequacy guidelines for banks to manage unexpected losses from risks based on their risk profiles. Risk management in banks involves identifying, measuring, monitoring, and controlling various risks to ensure sufficient capital levels are maintained.
This document discusses developing an effective Internal Capital Adequacy Assessment Process (ICAAP). It outlines the key components of an ICAAP including risk governance, risk appetite, risk-bearing capacity, material risk assessment, capital modeling, forecasts and stress testing. It discusses challenges in implementing an ICAAP and the roles of risk management, finance, internal audit and senior management/board oversight. Maintaining an ongoing and regularly reviewed ICAAP is emphasized.
This document summarizes a webinar presented by Mike Lubansky on stress testing loan portfolios. The webinar covered regulatory requirements for stress testing, the objective and importance of stress testing, different types of stress testing approaches for community banks, challenges with data collection, scenario selection, and maximizing the value of stress test reports. Sample stress test outputs were presented and common mistakes were discussed. The webinar provided an overview of effective stress testing practices for community banks.
This document discusses operational risk and key risk indicators (KRIs). It defines operational risk and provides examples of operational risk losses from past incidents. It explains that KRIs are metrics that provide information on an organization's current exposure level to a given operational risk. The document outlines the process for identifying KRIs, which involves risk and control self-assessments to identify inherent risks, controls, and residual risks and prioritize them. It also discusses setting thresholds for KRIs, collecting and reporting KRI data, and the roles involved in managing the KRI process. Examples of potential KRIs are provided for credit risk, financial markets activities, and other operational risks.
Operational risk is the risk of loss from failed internal processes, people, systems or external events. It is embedded in all bank activities and processes. Major types of operational risk include internal and external fraud, workplace issues, damage to physical assets, business disruptions, client/product issues, and legal risks. Common operational risk events in banking include losses from internal fraud, external fraud, improper sales practices, physical damage, system failures, and failed transaction processing. The document outlines approaches for quantifying and measuring operational risk, including the Basic Indicator Approach, Standardized Approach, and Advanced Measurement Approach. The Advanced Measurement Approach, which uses internal loss data and assessment methods, is most beneficial for banks.
Operational Risk Management - Understanding Your Risk LandscapeEneni Oduwole
This presentation provides insights on how the proper implementation of Operational Risk Management can lead to effective risk profiling, analysis and mitigation. It introduces operational risk as a bedrock for meaningful risk management irrespective of which industry an organization plays in.
Riskpro is an operational risk management consulting firm with offices in Mumbai, Delhi, and Bangalore. It aims to provide integrated risk management solutions to mid-large sized companies in India. Riskpro's team has over 200 years of cumulative experience in risk management. It offers a variety of services including Basel II/III advisory, operational risk consulting, risk training, and recruitment of risk professionals.
This document discusses operational risk management. It begins by defining operational risk and providing examples of operational failures. It then outlines the key aspects of operational risk management: identification, measurement, monitoring, and mitigation. Measurement techniques like historical simulation and Monte Carlo simulation are described. Key risk indicators are discussed as a tool for monitoring operational risk on an ongoing basis. The document provides guidance on identifying, quantifying, and managing operational risk.
Risk management involves identifying, assessing, and prioritizing risks, whether positive or negative, to minimize threats and maximize opportunities. It determines the maximum acceptable level of risk for an activity and develops strategies to reduce risks. Risks can come from many sources, including financial markets, project failures, legal issues, accidents, and deliberate attacks. Risk management evaluates the probability of an unwanted event occurring and its potential consequences.
Sharing Practice on Enterprise Risk Management (ERM)Diane Christina
The document discusses enterprise risk management (ERM). It provides an example ERM universe that includes strategic risks, physical assets risks, human factors risks, and financial risks. It also discusses some key aspects of effective ERM implementation, including establishing a risk governance framework, developing a risk management infrastructure, and following a risk management process of identifying, assessing, managing, and monitoring risks. The document is intended to share practices on ERM.
Potential misconduct fines are now one of banking’s biggest risks. But now that it can be a large part of operational risk—sometimes, in and of itself, ranking alongside credit and market risk—it’s time to start measuring it. Read this to find out how.
This document discusses enterprise risk management (ERM). It provides definitions of ERM, outlines its conceptual roots dating back to the 1970s-1990s, and describes what ERM is and how it can provide a framework for risk management. The document also discusses key aspects of ERM implementation including risk, uncertainty, risk attitudes, risk management processes and steps, and tools and techniques for risk assessment.
The document provides details on operational risk management and business continuity planning for a bank. It defines operational risk and outlines tools for risk identification and assessment including risk control self-assessments, key risk indicators, and internal loss data collection. It also describes the roles of operational risk coordinators and frameworks for calculating regulatory capital requirements. For business continuity planning, it discusses objectives, potential disruptive events, response procedures, and roles for invoking and recovering from emergencies at branches and alternative backup sites.
This document discusses risk reporting and risk management. It defines risk reporting as communicating risk-related data and facts through reports to the appropriate parties. Effective risk reporting allows for clear communication across an organization. It then describes the objectives, levels, and types of internal and external risk reporting. It also discusses limitations of risk reporting and major types of risk reports. The document also defines risk management, describes types of risks, and methods to manage risks, including avoiding, retaining, transferring, sharing risks, and reducing risks through various financial measures.
Operation Risk Management in Banking SectorSanjay Kumbhar
This presentation discusses operational risk management in the banking sector. It covers topics such as categories of operational risk, risk identification and analysis techniques, key risk indicators, and risk mitigation strategies. The presentation is delivered by five students and contains several sections that outline the flow of topics to be presented.
ALM (Asset Liability Management) involves strategic balance sheet management and managing risks stemming from mismatches between assets and liabilities. It aims to manage liquidity risk, interest rate risk, and profitability. The key risks banks face include credit risk, interest rate risk, liquidity risk, and foreign exchange risk. ALM involves analyzing the composition and maturity profiles of assets and liabilities to control volatility in net interest income and ensure sufficient liquidity. Banks use tools like gap analysis and simulation to measure risks and make decisions around portfolio composition.
The document discusses various aspects of credit risk and risk management in banks. It covers topics like the different types of credit risk, obstacles in credit risk management, methods to reduce credit risks, credit derivatives, securitization process, Basel accords, asset-liability management, capital adequacy ratio, and interest rate risk.
The document discusses operational risk and Basel II regulations. It defines operational risk as losses from internal failures or external events. It outlines the three pillars of Basel II which establish minimum capital requirements, supervisory review, and market discipline. It describes the different approaches for calculating operational risk capital charges, including the Basic Indicator Approach, Standardized Approach, and Advanced Measurement Approach.
Operational Risk : Take a look at the raw canvasTreat Risk
Operational risks by banks have never been recognised till BASEL II imposed on banks to look forward. Take a look at the broad canvas of Operational risks applicable for banks
This document summarizes risk management practices at Punjab National Bank (PNB). It outlines the main types of risks faced by PNB including credit, liquidity, market, operational, and country risk. It then provides details on how PNB manages each type of risk through practices such as standardized credit risk assessment, liquidity ratio monitoring, interest rate gap analysis, operational loss data collection, and capital allocation according to Basel guidelines. Key metrics on PNB's non-performing assets and capital requirements for different risk categories are also presented.
The document discusses credit risk management and outlines steps for managing a credit portfolio to minimize risk and optimize returns. It emphasizes formulating flexible credit policies, conducting target market planning and risk assessments, performing periodic reviews, and establishing a system to balance risk and revenue through various risk management objectives and capital adequacy requirements.
This document summarizes key aspects of risk management and capital adequacy from CAIIB modules, including:
- Basel I focused on credit risk and assigned risk weights and factors, while Basel II expanded this to include market and operational risk.
- Pillar 1 of Basel II covers minimum capital requirements calculated for credit, market, and operational risk. Pillar 2 involves supervisory review, and Pillar 3 covers disclosure requirements.
- Components of regulatory capital include Tier 1, Tier 2, and Tier 3 capital. Capital requirements are calculated based on risk-weighted assets.
- Guidelines in India selected the standardized approaches for credit and operational risk and the basic indicator approach for banks to initially adopt
This document provides an overview of a project proposal to model and measure operational risk in investment banks. It discusses how operational failures at investment banks can be costly and damaging. It reviews the Basel II accord's definition of operational risk and categories of operational risk events. It also outlines three main approaches to measuring operational risk under Basel II - the basic indicator approach, advanced measurement approach, and standardized approach. The proposal aims to identify a unique way to quantify operational risk in investment banks that is acceptable globally.
Safeguarding Bank Assets with an Early Warning SystemCognizant
The recent global financial crisis underscored the impact of non-performing assets and caused banks' overhead to soar. An automated early warning system (EWS) can help these institutions avoid the risk of problem loans, better protect their assets and reduce the effects of delinquent payments.
Temaswiss' Integrated Key Risk Controls (IKRC) best-practice design for Commercial Banking KYC and AML Transactions Monitoring.
- Commoditised Consulting & FSI Advisory packages.
- Tailored to your data & process realities.
- Budget- & Time-bound.
This document discusses two new exchanges that plan to trade securities futures - OneChicago and Nasdaq Liffe. OneChicago is a partnership between the CBOE, CME, and CBOT exchanges, with the goal of taking advantage of their combined resources to trade securities futures. Nasdaq Liffe is a joint venture between Nasdaq and Liffe that will leverage Nasdaq's technology and experience in the cash equities market and Liffe's derivatives expertise. Both exchanges received regulatory approval in 2002 and are preparing to launch securities futures trading to capitalize on new opportunities allowed under recent deregulation.
Basel II aims to establish a more risk-sensitive approach to capital adequacy by addressing three main areas or pillars: minimum capital requirements, supervisory review, and market discipline. It requires banks to hold capital reserves proportional to their credit, market, and operational risk. The framework allows two approaches for calculating credit risk - a standardized approach and internal ratings-based approaches. Pillar 2 covers supervisory review to ensure banks have adequate capital for all risks and encourage better risk management. Pillar 3 focuses on market discipline through public disclosures.
The bank has robust processes to manage credit risk that include collecting customer information, scoring and rating customers, reviewing results, approving ratings, updating documents, and monitoring for changes. It aims to diversify its loan portfolio, set appropriate risk limits, and maintain a risk measurement system to minimize credit risk.
This document provides an overview of credit monitoring and risk management in banks. It discusses the need for credit monitoring to ensure funds are used as intended and loan terms are followed. It describes methods to monitor borrowers' financial status. It also explains models to predict financial distress and the rehabilitation process. The document outlines different types of risks faced by banks including interest rate, liquidity, foreign exchange, credit, market, operational, and solvency risks. It discusses the risk measurement and mitigation process as well as non-performing assets and asset-liability management.
Banks are facing pressure from declining earnings and rising costs, exacerbated by new regulations like Basel III that require higher capital reserves. This document proposes a capital optimization strategy using three levers: 1) achieving operational excellence in risk-weighted asset processes to lower capital requirements, 2) linking pricing to true cost-of-capital to improve returns, and 3) realigning operations to improve efficiency and lower costs. The strategy aims to increase return on equity to 17-20% and lower cost-to-income ratios, allowing banks to better withstand regulatory capital demands. Key areas of focus include risk processes, data management, shared systems, and linking compensation to capital performance.
The document provides an overview of credit and collections management (CCM) and outlines 17 things organizations should be doing to reduce outstanding accounts receivable. It discusses the importance of creating a credit management plan, providing accurate and timely customer information, developing key performance indicators (KPIs) to measure progress, and clearly defining the roles and responsibilities of credit and collections staff. The document emphasizes that formalizing business processes through a credit plan and use of a CCM system can help organizations improve metrics like days sales outstanding, bad debt levels, and cash flow.
The document discusses credit scoring methods and model development. It provides an overview of different types of scoring models, including application and behavioral scoring. It also describes the model building process, including variable selection, statistical techniques like logistic regression, model validation, and performance measures. Monitoring of models after implementation is discussed through examples like approval rate reports and scorecard performance analysis. Future directions for scoring are mentioned, like adaptive control and profitability modeling.
This document discusses operational risk management. It begins with definitions of operational risk and management of operational risk. It then lists common causes of operational risk including internal and external fraud, employment practices, clients/products, damage to assets, business disruption, execution errors, highly automated technology, e-commerce, outsourcing, and mergers and acquisitions. It discusses approaches to calculating capital charges for operational risk under the basic indicator, standardized, and advanced measurement approaches. It also outlines factors for assessing and measuring operational risk events, monitoring operational risk, and data needs for operational risk management. Finally, it discusses management tasks related to operational risk mitigation and the typical organizational set-up for operational risk management.
Programme on Team Effectiveness-Main PresentationAsad Hameed
The document discusses the elements and skills needed for effective teamwork. It defines what a team is and lists advantages like increased productivity and creativity as well as disadvantages like potential dominance or slower decision making. It emphasizes establishing ground rules, contracts, and understanding the typical stages of team development from forming to adjourning. It provides tips for improving team effectiveness such as setting goals, clarifying roles, enhancing communication, and measuring performance. Overall the document provides guidance on building effective teams.
This document provides an overview of banking in Pakistan and Summit Bank. It discusses the evolution of banking in Pakistan from the establishment of the Bank of Bengal in 1809 to nationalization in 1974. It then summarizes the history of Summit Bank, formed through mergers of other banks. The document outlines Summit Bank's vision, mission, organizational structure, employment grades, performance management, leave policies, staff loans, types of financing available to staff including vehicle Ijarah, house finance and rewards for passing IBP exams.
This document provides an overview of banking in Pakistan. It begins with definitions of banking as financial intermediation and the evolution of banking in India and Pakistan. It describes the first banks established in Pakistan and how banks were nationalized in 1974. It also outlines the functions of commercial banks and the central bank (SBP). Finally, it provides a brief history of Summit Bank, describing its origins and mergers over time as well as its vision, mission, and branch network across Pakistan.
This document provides an overview of a training course on enhancing professional etiquettes. The course objectives are to help participants network effectively, dress appropriately, and improve confidence in business communication. It discusses why professional etiquettes are important to create a respectful environment and improve communication and trust. The document outlines different types of professional etiquettes including those related to communication, office/business, personal behaviors, and dress code. It provides guidance on proper hygiene, attire, communication techniques including handshakes, business cards, email and phone etiquette. The goal is to help professionals improve their image and interactions in work settings.
This document outlines an 8-session training course on motivating teams. The course covers key motivational theories, how to design motivating jobs, and creating a motivational work climate. Session topics include understanding motivation, setting goals, identifying individual and work values, and applying reinforcement and expectancy theories. The goal is to help managers understand what motivates employees and learn techniques to provide an environment where internal motivation activates performance.
The document introduces green banking guidelines issued by the State Bank of Pakistan for banks and financial institutions. It outlines the regulatory requirements for green banking, including developing policies and procedures to identify, assess, and monitor environmental risks. It defines green banking and culture, and discusses objectives like reducing vulnerability from environmental risks and facilitating sustainable development. Key areas of green banking are identified as environmental risk management, green business facilitation, and reducing banks' own environmental impacts. Roles and responsibilities for implementation are also covered.
The document introduces green banking guidelines issued by the State Bank of Pakistan for banks and financial institutions. It outlines the regulatory requirements for green banking, including developing environmental risk management procedures and reducing environmental impacts from banks' own operations. It then discusses key concepts of green banking like environmental risk assessment, green business facilitation, and reducing banks' own environmental impact. The roles and responsibilities of different departments in implementing green banking strategies are also covered.
The document discusses the Financial Action Task Force (FATF), an inter-governmental body formed in the late 1980s to combat money laundering. It summarizes FATF's role in developing anti-money laundering and countering the financing of terrorism standards and recommendations. It also discusses Pakistan's placement on FATF's grey list in 2018 and the economic and social impacts, as well as initiatives taken by Pakistan and its central bank to strengthen its AML/CFT regime.
This document outlines regulations for State Bank of Pakistan's regulated entities regarding anti-money laundering, combating the financing of terrorism, and countering proliferation financing. It discusses requirements for a risk-based approach, customer due diligence, enhanced due diligence for high-risk situations, reliance on third parties for customer due diligence, financial sanctions, and politically exposed persons. Key points include applying a risk assessment to policies and procedures, verifying customer identities, monitoring transactions, screening for sanctions lists, and obtaining senior management approval and monitoring high-risk customers like politically exposed persons.
This document provides training instructions for using the WUPOS payment system. It outlines the login process, searching for transactions by MTCN number, verifying sender and receiver details, collecting additional receiver information like address and phone number, completing the payout, and generating a payment receipt. It also describes how to view past transaction logs and the process for remote payments if the local system is not working.
The document outlines the procedure for cash payout through Summit Bank branches using Amanat Cash. A beneficiary must provide their Amanat Cash PIN number, recipient and sender names, expected amount within 10% of actual, and a valid ID to a teller. The teller will login to the Amanat Cash portal and the transaction details will appear. The system will debit the agent's account, credit the teller's cash account, and generate a payment receipt for signature by the beneficiary.
This document provides an overview and training on home remittance products and services for branch staff at Summit Bank. It begins with defining remittances and explaining their importance for Pakistan's economy. It then discusses the global and local remittance market size and scope of business opportunities for banks. The document reviews Summit Bank's home remittance products like Amanat Cash and arrangements with partners. It outlines key features, payment modes, and issues to address at branches to improve services. Finally, it discusses marketing initiatives and compliance procedures regarding transactions.
1. The document discusses effective meeting structure and procedures, including defining meetings, their common purposes, ground rules, typical agenda items, and the importance of meeting minutes.
2. Meeting minutes provide a historical record of discussions and decisions, as well as legal protection for organizations. They document assignments, deadlines, and the reasoning behind decisions.
3. Both formal and informal meeting minutes templates are presented. Formal minutes use specific language and structure for official records, while informal minutes quickly summarize key topics, goals, obstacles, and next steps.
The document provides tips for revising business messages to improve readability and conciseness. It recommends:
1. Removing flabby expressions, unnecessary words, and redundant phrases.
2. Using active verbs and avoiding "there is" and "it is" fillers.
3. Organizing information using headings, lists, and parallel structure.
The document provides guidance on effective business writing by discussing several key principles:
1) It emphasizes using an audience-oriented and purposeful approach by focusing on the reader, using inclusive language, and addressing their needs and benefits.
2) It recommends employing a positive and conversational tone by using "you" focused statements and avoiding negative phrases.
3) It suggests using common words and plain language to ensure the writing is clear and accessible to diverse readers. Adhering to these principles can help create targeted messages that will best suit the intended audience.
The document provides tips and guidelines for composing effective business messages and documents. It discusses strategies for organizing information, such as outlining. It also covers topics like developing parallel structure, using active and passive voice appropriately, avoiding misplaced modifiers, and formatting business letters. The document aims to help readers improve the clarity, structure and professionalism of their written business communications.
Business writing is a form of technical writing used in the workplace to persuade. It includes common documents like business letters, emails, memorandums, reports, contracts, manuals, and PowerPoint presentations. Effective business writing focuses on the purpose and audience, satisfies documentation requirements, gets straight to the point with concise sentences, provides accurate researched information presented logically and clearly through efficient wording and formatting.
Unit 1.3 SMBL Products and Services (Islamic)Asad Hameed
This document provides information on various Islamic banking products offered by Summit Bank including liability products like current accounts, savings accounts, and certificates, and asset products like murabaha, ijara, and diminishing musharakah. For each product, the document outlines the underlying Shariah contract, key features, and steps in documentation. It also provides dos and don'ts for proper implementation of the products in accordance with Shariah principles.
Unit 1.2 SMBL Products and Services (Conventional)Asad Hameed
SMBL offers a range of liability and deposit products including current accounts, savings accounts, term deposits, and specialized accounts. Key features include profit payment options, financing facilities, debit cards, bill payment services, and insurance benefits depending on the account type and balance maintained. Requirements vary but generally involve a CNIC and minimum deposit amounts.
This document discusses fraud prevention at Summit Bank Limited. It defines fraud and notes that banks are susceptible to both internal and external fraud due to their operations. All employees are responsible for preventing fraud by complying with laws, rules and procedures. The key elements of an effective anti-fraud program are a strong control environment, risk assessment, control activities, information and communication, and ongoing monitoring. Common types of bank fraud include fake instruments, unauthorized transactions, and cybercrimes. Red flags that could indicate fraud include changes in an employee's lifestyle and behavior. Thoroughly knowing banking operations, employees, risks, and investigating anomalies are important for mitigating fraud risk.
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[4:55 p.m.] Bryan Oates
OJPs are becoming a critical resource for policy-makers and researchers who study the labour market. LMIC continues to work with Vicinity Jobs’ data on OJPs, which can be explored in our Canadian Job Trends Dashboard. Valuable insights have been gained through our analysis of OJP data, including LMIC research lead
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Decoding job postings: Improving accessibility for neurodivergent job seekers
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Independent Study - College of Wooster Research (2023-2024) FDI, Culture, Glo...AntoniaOwensDetwiler
"Does Foreign Direct Investment Negatively Affect Preservation of Culture in the Global South? Case Studies in Thailand and Cambodia."
Do elements of globalization, such as Foreign Direct Investment (FDI), negatively affect the ability of countries in the Global South to preserve their culture? This research aims to answer this question by employing a cross-sectional comparative case study analysis utilizing methods of difference. Thailand and Cambodia are compared as they are in the same region and have a similar culture. The metric of difference between Thailand and Cambodia is their ability to preserve their culture. This ability is operationalized by their respective attitudes towards FDI; Thailand imposes stringent regulations and limitations on FDI while Cambodia does not hesitate to accept most FDI and imposes fewer limitations. The evidence from this study suggests that FDI from globally influential countries with high gross domestic products (GDPs) (e.g. China, U.S.) challenges the ability of countries with lower GDPs (e.g. Cambodia) to protect their culture. Furthermore, the ability, or lack thereof, of the receiving countries to protect their culture is amplified by the existence and implementation of restrictive FDI policies imposed by their governments.
My study abroad in Bali, Indonesia, inspired this research topic as I noticed how globalization is changing the culture of its people. I learned their language and way of life which helped me understand the beauty and importance of cultural preservation. I believe we could all benefit from learning new perspectives as they could help us ideate solutions to contemporary issues and empathize with others.
Understanding how timely GST payments influence a lender's decision to approve loans, this topic explores the correlation between GST compliance and creditworthiness. It highlights how consistent GST payments can enhance a business's financial credibility, potentially leading to higher chances of loan approval.
2. 2
SBP Regulatory Requirement
• SBP has asked Banks to implement a robust framework in the Bank, vide
its BPRD circular # 4 dated May 20, 2014 with the objectives:
• To identify, assess, measure and control operational risks imbedded in the
day to day banking transactions, products, systems and processes.
3. 3
Definition of Operational Risk
• The risk of loss resulting from inadequate or failed internal processes,
people and systems or from external events.”
• This definition includes legal risk but excludes strategic and reputational
risk.
• Bank is required to have a robust framework for ongoing evaluation of its
operational riskiness and to prevent frauds and reduce transactional errors
by maintaining strong emphasis on internal controls and develop human
resources.
4. 4
Tools & Techniques of Risk Identification & Assessment
• The following are the recommended techniques/ tools for operational risk
identification and assessment.
o Risk Control & Self Assessment (RCSA)
o Key Risk Indicators (KRIs)
o Gathering of Internal Loss Data
5. 5
Role and Responsibilities of ORM Coordinators
• ORM Coordinators identified in all head office divisions to facilitate the
implementation of operational risk management framework.
• Operational Risk Management Coordinators Report & validation of RCSA
and KRIs.
• Operational Risk Management Coordinators Report Operational Loss events
in a prescribed format to ORM on a periodic basis.
6. 6
Risk Control & Self Assessment (RCSA)
• RCSA is the process in which potential material risks are identified and
recorded along with their related controls.
• RCSA exercise should also focus on identifying and assessing future potential
risks since most of the biggest operational risk losses arise from some new
issues which are difficult to forecast.
Activity
Risk
ID
Basel II
Event
Type
Category
(Level 1)
Risk Description
Inherent Risk
Assessment
Mitigating/ Control
Description
Residual Risk
Assessment
Process
Owner
Control
Owner
Key
Risk
(Yes
/
No)
Key
Control
(Yes
/
No)
Key Risk
Indicators
(KRI)
Threshold
Impact
Likelihood
Impact
Likelihood
Expected
Loss
Description
of KRI/
Control
Indicator
Low
Medium
High
7. 7
Risk Control & Self Assessment (RCSA)
• The best way to suggest controls is done by the staff that actually performs
the activities.
• RCSAs can be done through process mapping, brain storming session,
surveys, workshops and expert judgment/ interviews.
• Banks shall identify and monitor at least 15 key risk indicators in each
business line.
11. 11
Key Risk Indicators (KRIs)
• KRIs selection process starts by analyzing the already identified key risks as a result of
RCSA exercises, audit reports, industry environment and actual loss experiences.
• The analysis of past events helps in the identification and finding of the intermediate
event or root cause event which led to the loss.
• KRIs are measurable indicators which can be termed as early warning signals, provide
information regarding increased current or potential level of operational risk.
• The goal of an effective KRI is to pin point the ultimate root cause of the risk event.
• The indicator is designed to transmit meaningful and timely information to the
management enabling them to take corrective actions to evade potential operational
losses before they happen or become larger.
12. 12
Examples of Inherent Risk, Control, KRIs & Threshold
Risk
ID
Risk Description Mitigating/ Control Description Description of KRI/ Control Indicator Threshold
1
Branches may not sent letters
to the beneficiaries of
unclaimed deposits in violation
of SBP instructions.
Branches are in practice to dispatched
prescribed Letters/ Notice yearly, as per
unclaimed MIS, in case of Returned Notice,
Branches marked Hold Mail WAM in system via
eticket.
Number of instances where branches
did not sent letters to the beneficiaries
of unclaimed deposits
0 0 1
2
Risk that semi-annual
statement of accounts from the
date of dormancy till date of re-
activation were not sent or
delivered with delay to the
customers in violation of SBP
guidelines.
Branches send/ delivered (under
acknowledgement) the statement of Accounts,
without charges 'from the Date Of Dormancy till
the Date of Re Activation' at customer's
registered address. Branches generate tickets
for activation of Dormant Accounts which
authorized by CPU
Number of instances noted in a month
where semi-annual statement of
accounts from the date of dormancy
till date of reactivation were not sent
or delivered with delay to the
customers
0 0 1
13. 13
Examples of Inherent Risk, Control, KRIs & Threshold
Risk
ID
Risk Description Mitigating/ Control Description Description of KRI/ Control Indicator Threshold
3
Risk that branches may not
maintain minimum One day’s
fresh / re-issuable cash balance
in accordance with the average
daily cash payment
requirements.
Branches are in practice to maintain minimum
surplus five days average of daily payment
requirement / turnover, machine sorted Re-
issuable / fresh cash, provided by Cash
Processing Centers/ Cash Houses. Branches are
in practice to send prior requisition of cash to
Cash Processing Centers/ Cash Houses.
according to their requirement / turnover on
the counter.
Number of instances noted where
branches not maintain minimum One
day’s fresh / re-issuable cash balance
in accordance with the average daily
cash payment requirements.
0 0 1
14. 14
Business Lines Mapping
Business Lines Department/ Units
Commercial Banking (BL04)
Corporate Banking
SME & Commercial Division
Special Asset Management
Credit Risk Management
Cost Centers/ Centralized Functions (BL09)
Compliance Division
Company Secretory Office
Fraud Risk Management Unit
IT Security
Rights Management
Information Technology Department
Finance Department
Country Operations
Admin. General Ser. & Protocol
Service Quality and Digital Banking
Human resources
Islamic Banking Department
CPU-Trade Finance
Legal Division
Trading & Sales (BL02)
Treasury Division
Market Risk & TMO
Financial Institutions & Home Remittances
Retail Banking (BL03) Retail Br. Banking/ COB
15. 15
Loss Data Identification, Collection and Treatment
• An operational risk loss can arise only from an actual operational risk event which has
a quantifiable negative impact on the profit and loss (P&L) statement of the bank. The
negative impact on P&L would be termed as Gross Loss i.e. loss before recoveries of
any type.
Identification of
loss
event/incidents
Reporting to
Operational Risk
Department via
approved Policy
Review of
reported
event/incidents
and assigning
thier
significancy by
Operational Risk
Department
Update of loss
event/incidnet
to Database
16. 16
Loss Data Identification, Collection and Treatment
Below mention Departments and support units & operational risk develop the
strategies for loss data collection.
• Admin Loss Data includes glass door, ATM, mobile, UPS damages & cash
shortage etc.
• Information technology (IT) Loss Data includes main IT servers downtime
Report, UPS system down time incidents, incident report of virus, Firewall &
Phishing Attacks.
• Service & Quality Loss Data includes customer complaints (Max. Count Wise
& Resolution TAT Wise).
• Fraud Risk Management Loss includes frauds, forgeries incidents & GL/ hPlus
for SBP penalties.
17. 17
Reporting & Action Plans
• Losses over certain thresholds, significant event, critical (present or
potential) risk and control breaches are immediately reported to senior
management & board of directors as per defined criteria.
• KRIs breaches should be regular and timely report to BRMC & senior
management.
• Internal Loss Data frauds, forgeries incidents, internal losses & SBP penalties
status also report to BRMC & senior management.
• RCSA & KRIs status also report to BRMC & senior management.
• Senior management & the board of directors are expected to understand and
remain updated on most significant KRIs pertaining to the institution’s top 10
risks.
18. 18
The Basic Indicator Approach
Banks using BIA Approach must hold capital for Operational Risk equal to the
average over the previous three years of a fixed percentage (denoted alpha) of
positive annual gross income
The charge may be expressed as follows:
KBIA = [Σ(GI1…3 x )]/n
Where;
KBIA= the capital charge under the Basic Indicator Approach;
GI = annual gross income, where positive, over the previous three years;
n = number of the previous three years for which gross income is positive;
= 15%.
19. 19
Standardized Approach (SA)
• The Standardized Approach (SA) for measuring the minimum operational risk capital
requirements, shall replace all the existing approaches in the Basel Capital Adequacy
Framework
• Under this methodology, a direct capital charge against the operational risk is
calculated; therefore, the corresponding Risk Weighted Assets (RWAs) will be derived
by multiplying the amount of operational risk capital charge with 12.5.
20. 20
Capital Charge:
Gross income or a combination of gross income and outstanding advances is
assumed to be the exposure indicator based on which operational risk capital
charge is calculated.
Minimum Capital Requirements:
The least amount of money that banks and depository institutions are required
to maintain is referred to as capital requirement. This amount should never be
claimed, should never be lent and should not be on debt. The reserved capital is
meant to deal with unexpected losses.
Risk-weighted assets (RWA):
Risk-weighted assets are used to determine the minimum amount of capital that
must be held by banks and other financial institutions in order to reduce the risk
of insolvency.
Important Definitions
22. 22
What is Business Continuity Plan?
What events we are taking?
• Any unplanned event that can cause death or injury
– Employees, customers, tenants or the public
• An unplanned event that can disrupt banking operations
• An unplanned event that can threaten an organizations financial
standing or image
23. 23
What is Business Continuity Plan?
• A documented plan (BCP) Assists in returning to some
level of normal operations – restoring customer
services, income, jobs, etc.
• BCP is a proactive planning on the part of the
management to keep the business running in case of
disruption due to the events beyond its control.
• Following an “event” or disaster it will be anything but
“Business As Usual”
24. 24
What is Business Continuity Plan?
• Ensure a timely, predefined response to an emergency
situation.
• Ensure emergency situations are dealt quickly and
effectively .
• Goal of initial response plan = minimize human loss,
monetary loss, damage to facilities and restore
business within pre-specified time.
• To cover the reputation of organization.
25. 25
OBJECTIVES OF BCP
Provide uninterrupted banking services to customers.
Mitigate the negative effects of disruptions to remain
in compliance with applicable laws and regulations.
Protect the lives of staffs, customers and damage to
bank’s assets.
Minimize financial loss to the bank.
26. 26
DISRUPTION/UNCONTROLLABLE EVENTS
Fire, Earthquake, Floods, Rains.
Hold up, dacoit, acts of terrorism, riots, strikes.
Breakdown in utility services.
Failure of IT systems and or break-down in
network/communication lines.
War or civil commotions, etc.
28. 28
Determine Degree of Disruption
• Following degree of disruption will be used to
rate the event and subsequent effect.
Degree Recovery Timeline
Low Operations recovery within 0 - 3 hours.
Medium Operations recovery within 3 - 6 hours.
High Operations recovery within 6 - 24 hours.
Extreme Operations recovery over 24 hours.
30. 30
WHEN TO “INVOKE” BCP
• Taking decision for INVOKING BCP is depend on condition faced by branch.
However, following points (not limited to) will help branch to identify their
needs for INVOKING BCP.
Situation Degree of Disruption
Unavailability of Premises Low to High
Unavailability of Systems Medium to High
Unavailability of Network Infrastructure Medium to High
31. 31
SOP under Medium to Extreme Disruption
• In case of Major / Extreme disaster situation or disruption where
operations recovery exceeds more than 6 to 24 hours.
• Branch Manager will contact to BCP Administrator and gravity of the
situation.
• BCP administrator in consultation with BCP Invoking and Recovery
Team will INVOKE BCP.
• Branch will move to Alternate Back up Branch.
• IT Division, Country Operations, Admin and HR will make their
necessary support to restore affected Branch operations.
32. 32
SOP Under Low Degree Disruption (Operations Recovery Expected within 3hours)
• Branch Management will handle the situation locally.
• Inform and seek support and guidance from IT Division &
Country Operations under intimation to BCP Administrator for
restoration of system, network, operational processes.
• Seek support from Remote Operations Unit at Country
Operations for system related processing issues.
33. 33
Remote Operations Unit (ROU)
• This unit under supervision of Country Operations provides support to the
branches located specially in remote areas and facing connectivity and system
issues, poor law and order situation and other contingency situations, where
branch operations are subject to disruption. In such scenarios Remote
Operations Unit provides IT related processing services to facilitate branch
operations like:
• All system related processing like cash deposit, Cash withdrawal, Instrument
realization i.e. CDR, PO, DD, Fund Transfer, Stop Payment, Clearing and system
day end is performed at ROU through fax.
• Dedicated staff on ROU performs the requested services on behalf of the
branch in the light of approved SOPs implemented at branches.
• After successful execution of process /transactions, ROU informs the concerned
branch for any further processing at its end.
34. 34
Centralized Operations as Back up Units
Centralized Operations of TRADE CPU and Credit Admin.
– Centralised operations of Trade CPU and CAD Units
located in South and North Regions will act as back
up site for each other and provide all operational
support to process and record respective
transactions and services of the affected
branch/division.
38. 38
BRANCH ROLE & RESPONSIBILITIES DURING NORMAL CONDITIONS
• Identified CRITICAL STAFF and define their roles & responsibilities.
• Define Staff Backups and ASSEMBLY/ GATHERING POINT
• Duplicate Keys to be in nearest branch
• Duplicate rubber stamps and letter heads to be in fire proof vault
• Fire alarms, sensors, Fire fighting equipment and panic buttons are
kept in working order and serviced regularly.
• Conduct Dry test of all security alarm systems, during off timing.
• Fire drill must be conducted and documented at least once a year.
• Keep Emergency numbers of Fire Brigade, Police, and Ambulance on
notice board.
• Proper signs of No Smoking Zones, Voltage Warning, are displayed at
Branch.
39. 39
BRANCH ROLE & RESPONSIBILITIES DURING NORMAL CONDITIONS
All emergency exits and passages are kept clear & Marked.
Emergency exit can be opened easily from inside.
Branch Manager ensure the proper functioning of CCTV.
Placement of backup-record to remote location.
Placement of safe keys at remote location,
Bank cash, records are locked in vault/ safe.
40. 40
BRANCH ROLE & RESPONSIBILITIES DURING EMERGENCY / DISRUPTION
Immediately inform to senior management and BCP Administrator
Ascertain the degree of disaster and disruptions into low, medium,
high and extreme for making decision to invoke BCP by the BCP
Administrator.
Limit further damage, secure facilities and Identify the need for
invoking of BCP.
Contact emergency services i.e. Police, Ambulance, Fire fighting.
Liaison with Area Manager/ RGM/ BCP Administrator to resumption to
normal.
Relocate available staff to Alternative Site
Provide full support to BCP Invoking & Recovery Team
o for resumption of business from alternative site.
o for recovery of ACTUAL/ DISASTER SITE
41. 41
INITIALIZING OPERATIONS FROM SECONDARY SITES
Ensure that alternate site has the availability of necessary resources (i.e. PC,
Printers etc.
Set up temporary work stations for cash receipt / payment / clearing / remittances
and others
Establish help desk to attend and facilitate customer enquiries.
Display address / contact details of secondary sites at the effected branch site for
the customer’s.
Publish notice in local newspaper (if required).
Move the duplicate keys, critical records / rubber stamps to backup site.
Obtain fresh amount of cash from the SBP or SMBL branch since the retrieval of
cash, critical records and rubber stamps from vault records may be delayed due to
fulfillment of insurance and other requirements.
Co-ordinate with the BCP Invoking & Recovery Teams for the availability of IT
facilities.
Initiate the critical functions form Secondary Branch and Confirm relocation to
Area/ RGMs.
42. 42
RECOVERY PROCEDURES
• Gather all preliminary information on the incident and identify
expected recovery time scale.
• For recovery of loss under insurance claim immediately update
BCP Invoking & Recovery Team for onward processing.
• After restoration of incident site, update BCP Administrator and
relocate employees back to their original location
43. 43
EMERGENCY RESPONSE INSTRUCTIONS
This section will provide effective, predefined framework and
process to respond to following.
◦ On discovery of fire
◦ Bomb threat
◦ On discovery of suspected bomb
◦ Flood/water damage procedure
◦ Act of Terrorism, Civil Commotion & Riots
◦ Hold-up procedure
◦ Strike
It should be noted that safety of Human life should always
remain the number one priority.
44. 44
BCP Instructions
ON DISCOVERY OF FIRE
◦ Raise the alarm by breaking the glass of the nearest fire alarm
point;
◦ Call fire brigade and try to tell comprehensive address of building
including NEAREST LANDMARK;
◦ Advise switchboard location of fire;
◦ Attack the fire with emergency equipment (only if safe to do so);
◦ If possible, close windows and doors to contain fire
◦ Evacuate building
45. 45
BCP Instructions
BOMB THREAT
◦ Inform Police immediately. While doing so, do not put down the
handset or cut off the conversation;
◦ Care must be taken not to create panic, and if the branch is open
for business that customers are advised calmly of the reason
◦ Evacuate building
ON DISCOVERY OF SUSPECTED BOMB
◦ Look out for the unusual or out of place, which might be indicate
the presence of a bomb;
◦ If as suspicious object or package is found; do not touch or move
the suspect object;
◦ Inform Police, Emergency Service immediately.
◦ Evacuate building
46. 46
BCP Instructions
FLOOD/ WATER DAMAGE PROCEDURE
◦ Check if electronic and electrical equipment is affected;
◦ If equipment is wet, do not touch, but turn off at main power switch;
◦ If electrical equipment is presently dry, power down normally (i.e. PC
and printers);
◦ Attempt to stop the source of water;
◦ Advise switchboard of location
◦ Inform Emergency Service immediately.
47. 47
BCP Instructions
ACT OF TERRORISM, CIVIL COMMOTION & RIOTS
◦ Inform Police, Fire brigade and Ambulance services immediately. While doing so, do not put down
the handset or cut off the conversation;
◦ Staff in vulnerable areas such as near windows overlooking the street on which the commotion is
taking place should draw blinds if available and move to the rear of the office.
◦ Bank’s assets should be stored away in safes/strong rooms/fire proof cabinets
◦ In consultation with country operations close down the branch advise staff to leave (when it is safe
to do).
HOLD-UP PROCEDURE
◦ If possible, Activate/Raise the panic alarm without attracting the attention of the robbers.
◦ Do exactly as demanded by the robbers, do not take any risks.
◦ Study one or more of the robbers carefully, memorize identifying characteristics and other relevant
information.
◦ Do not panic – remaining calm will enable you to be more observant, and less likely to jeopardize
your own life or the lives of others.
◦ Ensure that Police have been informed, particularly if no silent alarm is provided.
◦ Ensure that the BCP Administer has been informed of the entire event.
◦ Ensure the hold-up area is secure and that all evidence is being protected.
48. 48
BCP Instructions
• STRIKE
– Office should be looked un-operative from external view i.e. all
windows/glass cover through windows blinds.
– Guards should be stand inside the main entry.
– Main shatters/grills should be partially downs.
49. 49
EMERGENCY EVACUATION PROCEDURE
• When the building evacuation alarm is activate during an
emergency, leave by the nearest marked exit and alert others to
do the same.
• STOP YOUR WORK> EVACUATE THE BUILDING. IMMEDIATELY!
• USE STAIRWAY; DO NOT USE THE ELEVATOR IN ANY EMERGENCY
SITUATION.
• Use the nearest safe stairs and proceed to the nearest exit.
• Stay calm; do not rush and do not panic.
• If there is time, turn off personal computers to protect SMBL
data from possible damage.
• If it is safe to do, gather your personal belonging (Reminder:
take prescription medications out with you if at all possible; it
may be hours before your are allowed back in the building)
50. 50
If safe to do, close your office door and windows, but do not lock them.
Be alert for individual with disability or injuries who may need assistance.
However, under no circumstances should an individual risk or jeopardize
his/her personal safety in an attempt to rescue another person
Evacuated staff to assemble outside branch/office.
Keep streets and walkway clear for emergency vehicles and fire and medical
crews.
After normalization staff to be back to their office after permission of their
Manager.
EMERGENCY EVACUATION PROCEDURE
51. 51
DO NOT
DO NOT Use lifts;
DO NOT Shout or run as this can cause panic;
DO NOT Remain behind to collect personal belongings;
DO NOT Re-enter the building after evacuation for any reason.
DO NOT Talk to Media people about the situation, let them gather news from
official sources
MANAGERS
Should ensure that all staff in their domain leave the building promptly, along
with any visitors and members of general public in their areas if any.
At Emergency Assembly Point, Take attendance; make sure all staff are
account for (this means you must have a list of your staff, present on the
particular day, in your pocket.
EMERGENCY EVACUATION PROCEDURE
52. 52
If Safe, to do
• Bank assets, cash, records etc. should be quickly locked
away in safe, fire proof accommodation if possible.
• Bank cars to be parked at the safer places if possible.
53. 53
Thank You!
Operational Risk Management Department
Enterprise Risk Management Group
HO | Summit Tower, 11th Floor, Plot No. G-2, Clifton - Block 2, Karachi.