This course, Principles for the Management of Operational Risk in the Financial Industry, is a detailed presentation on best industry practice in the management of operational risk in banks and other financial institutions.

These principles have been developed and issued by the Bank for International Settlements’ (BIS), Basel Committee for Banking Supervision. They also form a part of the well-known “Basel Accords”, which is the set of banking regulations (Basel I, II and III), that provides recommendations on banking regulations in regards to capital risk, market risk and operational risk.

Based on best industry practice and supervisory experience, these principles cover three all-embracing themes: governance, risk management and disclosure.

We examine each of these principles and their relative implementation factors – what the principle means and what should be addressed in putting its requirements in place. We conclude by putting the principles to the test when examining a detailed banking Case Study.

This course brings you up to speed on current practice in the field of managing operational risk in financial institutions. 

 

Learning Objectives
  • Discover the operational risk management principles involved and what they cover.
  • Explore the various implementation issues involved in setting each of these principles in place.
  • Recognize the different types of operational risks and their subcomponents. 
  • Discover the key elements involved in managing operational risk.
  • Explore the three themes involved: governance, risk management and disclosure and their interrelationships.
  • Explore an actual case study and recognize the key operational risk management principles and the issues involved.
Last updated/reviewed: March 27, 2024
18 Reviews (61 ratings)

Reviews

3
Anonymous Author
I don't feel like I learned much in this course because there are 11 principles and on the slides, instead of referring to the description or type of principle, it just says 'Principle 1', 'Principle 2', etc, once you were past the first intro slides. I tried to Google the 11 Principles and this made me wonder - where did the 11 principles come from? Is it from ISO 31000? I would recommend having a brief description of the principle on a slide when discussing that principle, versus just calling it by it's number.
5
Anonymous Author
Very good course. Great introduction for anyone new to the subject and good refresh if you have been away from the subject for a while. The course was well organized and the slides were very detailed.
4
Member's Profile
Very Informative. The supporting materials--slides were great for me, as I am visual learner and like to go back and re-review items I may have missed.
3
Member's Profile
I do not have experiences in the Financial Industry. Thanks to the course, I could see specific principles for the management of operational risk.
4
Member's Profile
A great primer to learning about operational risk management. The case study at the end is a perfect example of how internal controls can fail.
5
Anonymous Author
Compliance and controls aren't the most riveting topic but he did a good job at keeping my attention and the content is relevant.
4
Anonymous Author
This course provides a good understanding of what Operational Risk is and what can be done to manage and reduce Operational Risk.
4
Anonymous Author
The presentation was a little slow, but overall good information on risk management at financial institutions and BASEL.
4
Member's Profile
good course on operational risk and management. members need to go through this course for more info and details
5
Anonymous Author
The instructor provided a comprehensive course that was well organized. The case study was especially helpful.
5
Member's Profile
This is a good Ops Risk refresher course. The course is structured well and is easy to follow along.
5
Member's Profile
Interesting to learn how many of the operational risks exposures come from banks' own employees.
5
Member's Profile
Very interesting. The instructor was very knowledgeable and explained well in a clear way.
5
Member's Profile
Fantastic course, very applicable to every day risk management in capital markets!
4
Member's Profile
banking info was informative even if the field is not one a student is in
5
Anonymous Author
Great course!!! I really enjoyed the two case studies presented.
5
Member's Profile
Very easy to follow and learn from! Five stars, would recommend!
4
Anonymous Author
A very comprehensive course. The course was well organized..
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Prerequisites
Course Complexity: Intermediate

No advanced preparation or prerequisites are required for this course.

Education Provider Information
Company: Illumeo, Inc., 75 East Santa Clara St., Suite 1215, San Jose, CA 95113
Contact: For more information regarding this course, including complaint and cancellation policies, please contact our offices at (408) 400- 3993 or send an e-mail to .
Instructor for this course
  Course Overview CPE
Course Syllabus
INTRODUCTION AND OVERVIEW
  Introduction to Principles for the Management of Operational Risk in the Financial Industry2:56
  The Basel Accords8:51
Principles for the Management of Operational Risk
  The Principles for Managing Operational Risk 9:15
  The Principles for Managing Operational Risk Continued2:03
  Principles 1 & 2 - General9:49
  Principles 3, 4 & 5 - Governance11:53
  Principles 6, 7, 8, 9 & 10 - Risk Management14:30
  Principles 9 & 1015:06
  Principles 11 - Disclosure2:23
  Basel Accords Operational Risk Summary2:37
Case Study
  Operational Risk Case Study10:26
  Operational Risk Case Study Continued9:06
CONCLUSION
  Conclusion10:07
CONTINUOUS PLAY
  Principles for the Management of Operational Risk in the Financial Industry1:49:04
SUPPORTING MATERIALS
  Slides: Principles for the Management of Operational Risk in the Financial IndustryPDF
  Principles for the Management of Operational Risk in the Financial Industry Glossary/IndexPDF
REVIEW AND TEST
  REVIEW QUESTIONSquiz
 FINAL EXAMexam