Operational Risk - FRM Part 1 - Valuation and Risk Models

Operational Risk provides a comprehensive understanding of the principles, frameworks, and practices used to identify, assess, monitor, and manage operational risk. The course examines risks arising from people, processes, systems, technology, and external events, with a focus on developing effective controls and risk mitigation strategies.

Students will explore practical tools such as Risk and Control Self-Assessments (RCSA), Key Risk Indicators (KRIs), operational risk event analysis, incident management, business continuity, and operational resilience. The course also covers governance, risk culture, regulatory expectations, third-party risk, fraud, cyber risk, and technology-related disruptions.

Through practical examples and case studies, learners will develop the ability to evaluate operational risk exposures and contribute to effective risk management and organisational resilience.

The course is designed to connect theoretical concepts with real-world business situations, helping learners understand how operational failures can affect financial performance, reputation, regulatory compliance, and customer confidence. Learners will also gain insight into risk reporting, control testing, root-cause analysis, and the development of appropriate remediation plans. By completing the course, students will be better prepared to recognise emerging operational risks, communicate risk information effectively, support decision-making, and contribute to a strong risk-aware culture within their organisations, and strengthen organisational resilience and preparedness for unexpected events.