Overview

This eCourse consists of two modules on operational risk. Module 1 introduces the concept of operational risk, including the difficulties in defining it and distinguishing between the many categories and subcategories of operational risk. The module also provides an overview of a bank’s operational risk management framework (ORMF) and the key issues and considerations associated with managing operational risk.

Module 2 looks at the various measures used to quantify operational risk, the challenges and issues associated with the measurement of operational risk, and the reporting of such measures.

Objective

On completion of this eCourse, you will be able to:
- Define operational risk and recognize the many sources of operational risk for a typical banking institution
- Recognise the key regulatory/supervisory requirements in relation to operational risk
- Identify the components of a bank’s operational risk management framework (ORMF)
- Recognise the necessary requirements for the effective management of operational risk
- Identify the key issues associated with the measurement of operational risk
- Calculate regulatory capital for operational risk
- Recognise the importance of operational risk reporting and the different types of report that banks produce
- List the key operational risk disclosures under Pillar 3

Content

Module 1: Operational Risk - An Introduction
Topic 1: Overview of Operational Risk
Topic 2: Regulatory Requirements
Topic 3: Operational Risk Management Framework (OMRF)
Topic 4: Managing Operational Risk

Module 2: Operational Risk – Measurement & Reporting
Topic 1: Measuring Operational Risk
Topic 2: Capital Calculations
Topic 3: Reporting Operational Risk
Topic 4: Pillar 3 Disclosure Reports