Fundamentals of Risk and Risk Management Governance Model

Welcome to the 'Fundamentals of Risk and Risk Management Governance Model' Course.

This course will provide you with the fundamental knowledge and practical skillset necessary to work in the 'Risk Management' Function of various regulated Institutions, OR in the risk advisory functions of Risk Consulting Firms.   

LEARNING OUTCOMES

By attending this course, you will learn how 'risk management governance and risk management activities' contribute to the overall corporate governance. You will learn;

• Fundamental concepts of Risk, Risk Events, Risk Outcomes, Major Categories of Risks,

• Examples of Risks and Risk Events,

• Risk Management Process, 

• 'Key Risks' and Risk Mitigation 'Controls' in Financial Services Institutions

  • Key Risks faced by Financial Services Institutions such as Banks, Money Service Businesses MSBs, Payment Gateways,

  • Risks Mitigation 'Controls' Implemented in Financial Services Institutions such as Banks, Money Service Businesses MSBs, and Gateways.

• You will learn Risk Assessment Methodology and how it is practically applied by Risk Professionals to assess the severity and impact of risks.

• You will learn how to classify risks into different categories, such as High, Medium, and Low.

• You will learn about the effective risk management governance models and structures that are implemented in regulated institutions. You will learn Risk Management Governance, Hierarchy, Risk Management Committees, and Roles of the Risk Management Function.

• You will learn about 'Board of Directors', Board Level 'Sub Committees', 'Governance Structure of Risk Management', Three Lines of Defense TLOD Model for Risk Management Governance, Roles and Responsibilities of 'Board of Directors', 'Risk Management Committees', 'Risk Management Function', 'Organogram/Structure Diagram' of 'Risk Management Governance, Committees, Function and Units',

• MCQs

• Downloadable Resources - By attending this course, you will be able to download files including the;

  • Major Risks Slide,

  • 5 by 5 Risk Assessment Methodology,

  • Board Risk Management Governance and Committee Structure, and

  • Management Level Risk Management Committee Structure.

• Download Checklist - By attending this course, you can download '14 Page' document on 'Risk Management in Financial Services Checklist' with 'Process Mapping'

  
  

COURSE MODULES?

In this course, you will learn core concepts and areas of Risk Management and Risk Management Governance Models, such as:

MODULE 1 - UNDERSTANDING CONCEPTS OF RISKS, RISK CULTURES, RISK TYPES, ETC.

- Understanding Risk, Risk Events, Risk Outcomes, and Adverse Impacts of Risks,

- Understanding several Major Types of Risks that cause losses to the Institution, each with specific Examples,

- Risks Segregation - Significant and Insignificant Risks with Examples,

- Strategic and Process Level Risks and Control Application with Examples

MODULE 2 - RISK SOURCES, RISK MANAGEMENT CULTURES AND QUIZ

- Different Risk Sources and their Significance in Risk Management,

- Risk Management Culture, its Importance and Significance in achieving results,

- Outcomes of practicing Weak Risk Management Culture - Negative Outcomes,

MODULE 3 - RISK ASSESSMENT METHODOLOGY AND ITS APPLICATION

In this Module, you will learn the practical application of risk assessment methodology and matrix, used to prioritize risks.

- Understanding Risk Assessment Methodology and Risk Management Process with Example,

- Understanding '5 by 5' Risk Assessment Matrix, a grid used to prioritize risks based on their Significance/Severity and Likelihood/Probability, 

- You will learn the unique combination of '5 by 5' Risk Assessment Matrix, where each cell represents the unique combination of likelihood and severity.  You will learn the practical application of 'Risk Assessment Matrix', using examples.

MODULE 4 - RISK MANAGEMENT GOVERNANCE, HIERARCHY, COMMITTEES, AND RISK MANAGEMENT FUNCTION

In this Module, you will learn how Institutions establish Risk Management Governance/Board, Risk Committees, Risk Functions, and Processes.

- Overview of 'Board of Directors' and Board Level 'Sub Committees',

- Understanding 'Governance Structure of Risk Management' implemented in Institutions and Organizations,

- Risk Management - Three Lines of Defense TLOD Model for Risk Governance and Management,

- Roles and Responsibilities of 'Board of Directors', 'Risk Management Committees', 'Risk Management Function',

- 'Organogram/Structure Diagram' of 'Risk Management Governance, Committees, Function and Units',

QUIZ AND MCQs

- Quiz Tests

- Multiple Choice Questions MCQs

DOWNLOADABLE RESOURCES

• Downloadable Resources - By attending this course, you will be able to download Risk Management Governance Slides, etc.

• Download Checklist - By attending this course, you can download '14 Page' document on 'Risk Management in Financial Services Checklist' with 'Process Mapping'

WHY IS GOVERNANCE IMPORTANT IN RISK MANAGEMENT

Risk Management is a crucial component of sound corporate governance in institutions and companies, designed to ensure safety, sustainability, financial, and operational performance. Without the 'Risk Management Governance', institutions cannot survive, sustain their reputation, and retain their customers. 

In the past, we have seen that the Risk Management Failure mainly occurs due to 'Lack of Risk Management Governance', 'Weak Risk Culture', 'Poor Implementation of Policies', and 'Ineffective Risk Assessments'. 

Risk Management Governance failure is not limited to banks. In the past, various reputable institutions in the US, UK, and Europe were reported as institutions with 'Weak Risk Management Governance' that caused imposition of heavy penalties and fines from the regulatory authorities.

WHAT IS RISK MANAGEMENT GOVERNANCE?

In Financial Services Institutions, Risk Management Governance and Practices are mandatory Regulatory requirements. Risk Management Governance involves sound Board-Level Governance, establishing an Independent Risk Management Function, implementing strong Risk Culture, Implement risk management policies, and Performing Risk Assessments.

Due to the complexity of operations, technology, systems, and processes, risk management has become a challenge for Institutions and Organizations.  Weak risk management leads to financial, legal, and reputational losses, and Institutions lose millions of dollars due to weak risk management governance.

WHICH SECTORS AND INSTITUTIONS NEED RISK MANAGEMENT GOVERNANCE, AND RISK ASSESSMENT?

Risk Management Governance is crucial for almost all types of Sectors, and Regulated Institutions, especially Banks, Money Service Businesses MSBs, Investment Firms, Payment Gateways, FinTechs, Open Banking, Pharmaceutical Companies, Leasing, Insurance, Oil and Gas Sector, etc. These Institutions are exposed to various existing and emerging risks, and Regulators require them to develop and implement robust 'Risk Management Governance and Oversight Mechanism' to manage risks.

These institutions spend millions of dollars on establishing effective risk management governance, functions, systems, and processes to identify, assess, and manage risks. Therefore, Big Consultancy Firms around the world provide Risk Management Consulting and Advisory services to these institutions and charge handsome fees for their professional services.

BENEFITS OF ATTENDING THIS COURSE:

By attending this course, you will:

- be able to understand how institutions, organizations, and companies identify risks from various sources, assess them, and manage with effective and robust Risk Management Governance Models, Hierarchies, Committees, and a Risk Function,

- be able to talk confidently with risk management professionals and consultants regarding risk management governance, practices and activities of board and management level 'risk management committees' and 'risk function',

- be able to work in consultancy firms or organizations in their risk management departments,

- get a certificate of completion of this course, 

- be able to pursue a career progression in risk management.

WHO SHOULD ATTEND THIS COURSE?

This course should be attended by:

• Risk Management Professionals

  • Operational Risk Management ORM Heads or ORM Managers

  • Liquidity Risk Heads and Managers

  • Compliance Risk Management Heads and Managers

• Risk Management Consultants

• Compliance Professionals and Compliance Consultants

• Cybersecurity and IS Security Professionals

• Professionals working in Banks, MSBs, Fin-Techs, E-Commerce, Oil and Gas, Manufacturing, and other regulated entities or institutions

  • Business and Branch Managers

  • Operations Managers

  • Risk Reviewers

  • Finance Head and Financial Controllers

  • Internal Auditors

  • Internal Controls Professionals

• CFA / FRM / CA / ACCA / CAMS or other Finance students

• Anyone who wants to learn Risk Management and Risk Management Governance