Emerging Trends in Operational Risk, Risk Appetite, and Governance
Enhancing Resilience through Forward-Looking Risk Management and Controls
Course Schedule
| Venue (InHouse) | Fees |
|---|---|
| At Your Organization Premises | Ask For The Quotation |
Course Introduction
As financial institutions face increasing complexity, evolving technologies, and regulatory expectations, operational risk management must evolve from reactive controls to forward-looking governance frameworks. This course explores emerging trends in operational risk, the articulation and application of risk appetite, and the integration of sound governance practices to strengthen resilience and align risk-taking with strategy.
Course Objectives
By the end of this course, participants will be able to:
- Understand evolving trends and challenges in operational risk
- Define and apply an institution’s risk appetite effectively
- Enhance risk culture and operational governance practices
- Integrate risk identification, assessment, monitoring, and reporting
- Prepare for non-financial risks, including cyber, conduct, and third-party risks
Key Benefits of Attending
- Stay current with global trends in operational risk and governance
- Learn how to align risk appetite with business strategy
- Build a proactive risk culture across departments
- Benchmark your risk framework against industry best practices
- Prepare for evolving supervisory and regulatory expectations
Intended Audience
This program is designed for:
- Risk and Compliance Officers
- Operational Risk Managers
- Governance, Audit, and Control Professionals
- CROs, CFOs, and Business Heads
- Professionals involved in enterprise risk or strategy
Individual Benefits
Key competencies that will be developed include:
- Forward-looking operational risk identification and analysis
- Practical skills in risk appetite development and usage
- Improved risk reporting and escalation frameworks
- Enhanced ability to align risk, governance, and strategic planning
- Competence in addressing conduct, cyber, and emerging non-financial risks
Organization Benefits
Upon completing the training course, participants will demonstrate:
- Enhanced operational resilience and risk awareness
- Stronger governance and accountability structures
- Aligned risk appetite and tolerance across business units
- Better integration of risk insights into decision-making
- Improved regulatory compliance and stakeholder confidence
Instructional Methdology
The course incorporates:
- Case Studies – Based on global operational risk events
- Group Exercises – Mapping risk appetite to strategic priorities
- Expert Insights – From regulatory and industry frameworks
- Facilitated Workshops – Building governance and control mechanisms
- Scenario Analysis – Planning responses to emerging threats
Course Outline
DETAILED 5-DAY COURSE OUTLINE (Customizable)
Training Hours: 07:30 AM – 03:30 PM
Daily Format: 3–4 Modules | Breaks: 09:30 & 11:15 | Lunch: 01:00 – 02:00
Day 1: Foundations of Operational Risk and Governance
- Module 1: Overview of Operational Risk (07:30 – 09:30)
- Definitions and types of operational risks
- Risk drivers in modern financial institutions
- Frameworks from Basel, ISO 31000, and COSO
- Module 2: Governance and the 3 Lines Model (09:45 – 11:15)
- Roles and responsibilities in risk governance
- The 3 Lines of Defense model
- Integrating controls, assurance, and management oversight
- Module 3: Operational Risk Culture (11:30 – 01:00)
- Embedding risk awareness into daily activities
- Behavioral factors and incentives
- Culture assessment and change management
Day 2: Risk Appetite Development and Implementation
- Module 4: Defining Risk Appetite & Tolerance (07:30 – 09:30)
- Key concepts and distinctions
- Translating strategy into risk capacity and limits
- Stakeholder engagement and board alignment
- Module 5: Risk Appetite Statements (09:45 – 11:15)
- Structure and format of effective risk appetite statements
- Quantitative vs. qualitative metrics
- Cascading risk appetite to business units
- Module 6: Monitoring & Breach Escalation (11:30 – 01:00)
- Early warning indicators and triggers
- Breach management and escalation protocols
- Feedback loops and reporting
Day 3: Tools and Techniques for Managing Emerging Risks
- Module 7: Scenario Analysis and Stress Testing (07:30 – 09:30)
- Using scenarios for operational risk insights
- Linkage to capital planning and resilience testing
- Cross-functional scenario development
- Module 8: Key Risk Indicators and Dashboards (09:45 – 11:15)
- Design and implementation of KRIs
- Threshold setting and alert systems
- Risk visualization and executive dashboards
- Module 9: Third-Party and Outsourcing Risks (11:30 – 01:00)
- Vendor risk management frameworks
- Onboarding, monitoring, and exit strategies
- Contractual controls and SLAs
Day 4: Non-Financial Risks and Response Strategies
- Module 10: Cyber & Technology Risk (07:30 – 09:30)
- IT and digital risk assessment
- Controls against cyber threats and fraud
- Incident response and recovery
- Module 11: Conduct and ESG Risks (09:45 – 11:15)
- Integrity, ethics, and reputational impacts
- Integration of ESG into operational risk frameworks
- Regulatory trends and global developments
- Module 12: Crisis Management and BCP (11:30 – 01:00)
- Business continuity planning essentials
- Communication plans and crisis simulations
- Aligning BCP with operational risk programs
Day 5: Integration, Review and Governance Optimization
- Module 13: Risk Governance Review (07:30 – 09:30)
- Assessing board and senior management oversight
- Enhancing committee structures and reporting
- Aligning risk governance with corporate governance codes
- Module 14: Operational Resilience Framework (09:45 – 11:15)
- From risk management to resilience
- Identifying important business services
- Mapping impact tolerances
- Module 15: Final Workshop & Action Plan (11:30 – 01:00)
- Team exercise: building an integrated OR framework
- Key takeaways and lessons learned
- Creating a roadmap for enhancement
Certification
Participants will receive a Certificate of Completion in Emerging Trends in Operational Risk, Risk Appetite, and Governance, recognizing their advanced understanding of proactive risk management, governance structures, and strategic alignment of operational risk practices.