1. The learners will gain an understanding of Operational Risk, its causes and its relationship with overall operational efficiency.
2. The learners will understand the guiding principles laid down by BCBS for financial services and continuous enhancements in operational risk management tools through guidelines based on the global best practices.
3. The learners will get to understand the techniques being developed for building resilience and adapting to the environment.

The course is structured in eight modules, with each module catering to a separate risk domain.

Introduction:

• * About the course
• * Brief Objectives
• * Relevance

Module I

Risk:

* Understanding Risk

• o Definition of Risk
• o Financial Risk & Non-Financial Risk
• o Link between Risk, Return & Capital

* Understanding Operational Risk

• o History & Background Of Operational Risk
• o Nature Of Operational Risk
• o Causes of Operational Risk

* Risk Management Process

Module II

Principles:

• * Principles for the Sound Management of Operational Risk (PSMOR)
• * Principles for Operational Resilience

Module III

Loss Data :

• * Basel Guidelines
• * Internal Loss Data
• * External Loss Data
• * Near Miss Events
• * Loss Data Collection
• * Root Cause Analysis

Module IV

Business Environment & Internal Control Factors ( BEICF) :

Risk & Control Self Assessment

• * Basel Guidelines
• * Objective & benefits of RCSA
• * Process for Preparation
• * Identification & Assessment of Risk
• * Risk and control rating scales
• * Risk Profiling and Health Index
• * Ground Rules for the conduct of RCSA Workshop

Module V

Business Environment & Internal Control Factors ( BEICF):

Key Indicators

• * Understanding Key Indicators
• * Type of Key Indicators
• * Attributes of Key Indicators
• * Threshold Setting
• * Review of Key Indicators

Module VI

Scenario Analysis

• * Basel Guidelines
• * Stress testing
• * VaR

Module VII

Capital Computation

• * Simple Approaches: Basic Indicator Approach (BIA), The Standardised Approach (TSA)
• * Advanced Measurement Approaches (AMA
• * Standardised Measurement Approach (SMA)

Module VIII

• * BCP
• * Operational Resilience

Module IX

• * Final Evaluation