Managing Operational Risk 20 Firmwide Best Practice Strategies by edk11657


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									                                                                                                       RISK MANAGEMENT

Enterprise Risk Management (ERM) for Corporates
11 – 12 JUNE 2009, SINGAPORE

Traditionally, organizations have managed the risks of different business unit using the “silo-by-silo” approach,
which refers to the groups of tall storage bins or “silos” seen on farms and used for grain storage. The various
credit, market, and operational risks faced by the business units of an organization were separately managed. This
program is designed to present the perspectives, concepts, benefits, limitations, best practice and directions
inherent to the enterprise risk management (ERM) process. ERM risks and opportunities are discussed. The roles
and responsibilities of stages and players of the ERM process are detailed. Best practice for the risk response
plans/strategies and risk measurement functions associated with the ERM process are presented. Risk and capital
allocation and risk reports and limits at the enterprise level are discussed. The program closes with comments on
future directions and open ERM challenges.

   Apply enterprise risk management (ERM) best practices, including capital allocation on a risk-adjusted basis
   Assess risk sinks and sources at the firmwide level and take advantage of possible synergies
   Learn better risk communication and reporting procedures between business units
   Take advantages of the benefits of managing an organization as a portfolio of business units

   Senior and Junior Corporate managers
   Senior Management and Other Executive Officers
   Asset/Liability Managers and ALCO Members
   Credit, Market and Operational Managers
   Treasury and Capital Markets Managers
   External and Internal Auditors

   Suggested background is a reasonable understanding of basic financial markets, institutions and instruments,
   along with a basic knowledge of portfolio concepts and risk management practice
   An introductory-level statistics/probability course and proficiency with EXCEL are also suggested

Delegates should bring a laptop loaded with Microsoft Excel 2000 & above.

Day 1: The Enterprise Risk Management (ERM) Process – Perspectives and Fundamentals

    Banana Skins: Surveys of Risk Management Slip-Ups
    Rationale for ERM - Managing Risk Interdependencies versus “Silo-by-Silo” Approaches
    Firmwide Risk Categories and the Components of an Effective Enterprise Risk Management Function
    ERM Cost/Benefit Tradeoffs – Risk and Opportunities from an ERM Perspective
    Role of Senior Management and Other Players in Setting Implementing ERM Strategic Policies
    ERM Event Identification, Assessment, Measurement and Mapping
    Establishing a Firmwide Risk Register and Risk Response Planning
    Establishing an Effective Risk Culture from an ERM Perspective

Day 2: Establishing Best Practice of an ERM Function at Different Organizational Levels

    Policies and Strategies for Risk Management in an ERM Context
    ERM Risk Mapping, Simple Risk Indicators and Risk Factor Sensitivities Measures
                                                                                   RISK MANAGEMENT

Selecting and Setting Risk Limits and Factor Sensitivities for a ERM Function
Capital-at-Risk (CaR) and Other Risk-Adjusted Capital-Based Performance Measures
COSO-based Control and Monitoring in an ERM Framework
Guidelines for Developing and Using Effective ERM Risk Reporting
Basel II and Its Impact on ERM

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