Operational Risk Management & Mitigation

About the Course

This 5-day Operational Risk Management & mitigation training course is designed to equip delegates with essential skills and strategies for navigating the complex landscape of operational risks. Operational risks, ranging from human error to technological failures and external disruptions, pose significant threats to organisations across industries. Effectively managing these risks is not merely a compliance requirement but a strategic imperative for ensuring business resilience and sustainability.

Delegates will learn the foundational principles and advanced methodologies of operational risk management. By understanding the diverse nature of operational risks and their potential impacts, delegates will gain insights into identifying, assessing, and prioritising risks relevant to their organisational context. It will emphasize practical approaches to developing robust risk management frameworks aligned with industry standards and regulatory expectations.

It will also explore the critical role of governance structures in fostering a risk-aware culture within organisations. Delegates will learn how to establish clear roles and responsibilities, cultivate transparency in risk reporting, and integrate risk management seamlessly into business processes. Moreover, it will highlight the strategic importance of aligning risk management practices with overarching business objectives, facilitating informed decision-making and proactive risk mitigation strategies.

By the end of this training program, delegates will possess a comprehensive understanding of operational risk management best practices and be equipped to implement these practices effectively within their respective organisations. Through interactive discussions, case studies, and practical exercises, they will gain actionable insights to enhance resilience, optimise performance, and safeguard organisational value amidst an increasingly volatile and uncertain global landscape.

Core Objectives

By the end of the training course, delegates will be able to:

• Define and differentiate operational risks from other types of risks, and recognise their potential impact on organisational objectives and stakeholders
• Utilise qualitative and quantitative methods to identify, assess, and prioritise operational risks relevant to the organisation's strategic goals and operational activities
• Develop and implement robust risk management frameworks aligned with industry best practices to proactively manage and mitigate operational risks
• Establish clear roles, responsibilities, and governance structures to foster a culture of risk awareness and accountability throughout the organisation
• Embed risk management practices into day-to-day operations and decision-making processes to enhance resilience and mitigate the impact of potential disruptions
• Leverage risk management information systems (RMIS) and other technological tools to monitor, measure, and report on key risk indicators (KRIs) effectively
• Implement feedback mechanisms and processes for reviewing and updating risk management strategies

Training Approach

This training course blends theoretical knowledge with practical application through interactive discussions, case studies, and simulated exercises. Delegates will engage in hands-on learning experiences to reinforce concepts, promote peer-to-peer learning, and cultivate skills that can be directly applied within their organisational contexts.

The Attendees

This training course suits a diverse group of delegates and ensures a holistic perspective on operational risk management, fostering collaboration and knowledge-sharing across various organisational functions and industries.

It will be valuable to the professionals but not limited to the following:

• Senior Executives and Board Members
• Risk Managers and Analysts
• Compliance Officers
• Internal Auditors
• Business Continuity Managers
• Project Managers
• Legal and Regulatory Affairs Professionals
• IT and Security Professionals
• Finance and Treasury Managers
• Supply Chain and Procurement Managers

Daily Discussion

DAY ONE: OVERVIEW OF OPERATIONAL RISK MANAGEMENT

• Understanding Operational Risk: Definition and Scope
• Types of Operational Risks: Identification and Classification
• Risk Assessment Techniques: Qualitative vs Quantitative Approaches
• Risk Appetite and Risk Tolerance: Setting Parameters
• Risk Management Frameworks: COSO ERM, ISO 31000, and Basel II/III
• Compliance and Reporting Requirements
• Tools and Systems for Risk Management 

DAY TWO: RISK MANAGEMENT METHODS

• Scenario Analysis: Forecasting Potential Risk Events
• Key Risk Indicators (KRIs) – Monitoring Early Warning Signs
• Identifying the Source of Risks
• Engaging Business Units in Risk Identification
• Stress Testing and Sensitivity Analysis
• Business Impact Analysis (BIA)
• Risk Mitigation Strategies: Preventative and Corrective Measures

DAY THREE: RISK GOVERNANCE

• Roles and Responsibilities
• Risk Culture
• Risk Appetite Framework
• Risk Reporting
• Internal Controls
• Managing Vendor and Third-Party Risks
• Independent Validation of Risk Management Processes

DAY FOUR: IMPLEMENTING OPERATIONAL RISK MANAGEMENT

• Embedding Risk Management in Business Processes
• Risk Ownership
• Employees in Risk Management
• Response Protocols and Escalation Procedures
• Risk Monitoring and Review
• Metrics for Assessing Risk Management Effectiveness

DAY FIVE: INTEGRATING RISK MANAGEMENT WITHIN THE ORGANISATION

• Linking Risk Management with Business Objectives
• Breaking Silos for Effective Risk Management
• Risk Management Framework Review
• Preparation and Response Strategies
• Business Continuity Planning
• Managing Risks in Organisational Change Initiatives
• Risk-Aware Culture