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5 - FNB - Finance and Banking

FNB 165 - Financial Risk Management & Corporate Governance

Code Start Date Duration Venue
FNB 165 22 October 2023 5 Days Berlin Registration Form Link
FNB 165 12 November 2023 5 Days Muscat Registration Form Link
FNB 165 24 December 2023 5 Days Istanbul Registration Form Link
Please contact us for fees


Course Description

The financial industry is highly exposed to many types of risks, in most cases those risks are very inherent in nature i.e. risks cannot be avoided, to the best they could be managed, in this way financial industry is truly in the risk taking business.

In addition to traditional risk types, e.g. credit, market & liquidity risks, financial institutions are also exposed to operational risk; many argue that such exposure is much more than the other traditional risk types. Identifying and measuring/assessing drivers for operational risk is quite challenging since operational risk losses typically manifest themselves in the credit, market or liquidity risk profiles, this is in addition to the inherent complexities of the quantification of operational risk drivers, e.g., people, process & control failures due to the qualitative nature of such risk drivers.

This training course is designed to overcome these challenges as well as attempting to provide participants a complete operational risk management cycle on modeling operational losses, explaining the development process for Key Risk Indicators (KRIs), and clarifying the Risk-Control Self-Assessment (RCSA) processes all in line with the latest operational risk management industry best practices & international standards including Basel & regulatory requirements.

Course Objectives

  • Mastering the "Operational Risk" conceptual framework
  • Developing participants' abilities to drill down Operational Risk drivers & factors
  • Drilling down operational risk process
  • Explaining operational risk components & methods for modeling operational loss incidents & key risk indicators
  • Mastering the Risk-Control-Self-Assessment (RSCA) process along with real bank examples
  • Explaining latest banking industry approaches & trends with respect to managing operational risk

Who Should Attend?

  • Risk Management Staff Members
  • Internal Audit Officers
  • Financial Control Officers
  • Basel Implementation Officers

Course Details/Schedule

Day 1

  • Term definitions
  • Operational risk types & sub-types
  • Detailed operational risk classifications
  • Components of operational risk framework
  • Internationally recognized principles for sound operational risk management
  • Operational risk management process
  • Why operational risk should be managed?

Day 2

  • Risk Models vs. Model Risks
  • Risk Models
  • Qualitative Models (Scorecard; SC)
  • Quantitative Models (Loss Data Approach; LDA)
  • Hybrid Models (Scenario-Based Analysis; SBA)
  • Operational loss data (OLD)
  • Definition & attributes
  • Reportable OLD
  • OLD template

Day 3

  • Key Risk Indicators (KRIs)
  • Definition & attributes
  • KRIs development process
  • Monitoring & escalation
  • Documenting KRIs
  • Risk-Controls Self-assessment (RCSA):
  • Definition & attributes
  • Modeling RCSA process overview:
  • Monitoring & escalation

Day 4

    • What is corporate governance?
    • Establishing corporate values
    • Holding the executives to account
    • Maintaining the corporate reputation
    • Company directors and company boards
    • Promoting the success of the company by using corporate governce tools
    • Role of the chairman
    • Executive and Non-executive directors
    • Making a difference using non-executive directors


Day 5

  • Corporate failure resulting from poor governance
  • Protecting shareholders and other stakeholders
  • A Legal framework for corporate governance
  • Corporate social responsibility
  • The pressure for corporate behavior change
  • Win – Win solutions to enhance change in the organisation
  • Strategic risk management while building corporate governance in the organisation
  • Identifying, prioritizing and managing risks
  • Probability & Impact analysis of risks
  • Board approaches to strategic risk