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Operational Risk in Banking and Financial Services
Rating: 4.0 out of 5(10 ratings)
38 students

Operational Risk in Banking and Financial Services

Learn the fundamental concepts required to manage operational risk in banks and financial institutions
Created byVivek Sharma
Last updated 6/2024
English
English [Auto],

What you'll learn

  • Understand concept and types of Operational Risk
  • Understand the fundamentals of operational risk management
  • Learn key steps involved in Operational Risk Management
  • Understand data requirements for operational risk mamagement
  • External Data Sources and Operational Risk
  • Capital Requirement for Operational Risk
  • BASEL-III Capital Requirement Calculation
  • Emerging Trends in Operational Risk

Course content

1 section • 15 lectures • 2h 17m total length

  • Your Instructor for the Course1:37

    The video introduces  you to the instructor of this course

  • An Overview of the Course4:02

    The video provides details of course coverage.

  • Understanding Risk7:29

    The video explains concept of risk and why it is difficult to understand and predict risk,

  • Quiz on Basics of Risk
  • Typology of Risks8:29
  • Understanding Operational Risk7:24

    Understand the Basel committee definition of operational risk, loss from inadequate or failed internal processes, people, systems, or external events, including data entry errors and insider trading.

  • Examples and Categorisation of Operational Risks8:25

    Explore operational risk by identifying examples across internal processes, people, systems, and external events, and learn how to categorize them under Basel's seven operational risk categories.

  • What Defines Operational Risks in a Bank or Financial Institution5:07

    Explore the four drivers of operational risk in banks: nature of business, size, complexity, and risk profile, and see how geography, product complexity, and controls shape risk.

  • Understanding Operational Risk Management Framework11:54
  • Pillars of Operational Risk Management8:26

    Explore the three pillars of operational risk management—prepare and protect, build resilience, and learning and adapting. Emphasize governance, risk culture, risk identification, business continuity, third-party controls, and cyber security.

  • Quiz on Operational Risk
  • Tools used for Assessment and Identification of Operational Risks11:04
  • Understanding Key Risk Indicators in Operational Risk13:39
  • Lines of Defence in Operational Risk8:11

    Explain how the three lines of defense—business unit management, the compliance function, and the audit function—collaborate to identify, assess, and mitigate operational risk within a robust framework.

  • Lecture-13: Internal and External Operational Loss Data10:04

    Discover how to collect internal and external loss data, including near-misses, to reveal operational risk exposure, apply materiality thresholds, and build a structured risk framework.

  • Assessment on Operational Risks
  • Capital Requirement for Operational Risk8:01
  • Operational Risk Capital Calculation18:10
  • Case Study-1
  • Understanding Risk and Its Meaning
  • Quiz on Internal Loss Data in Operational Risk

Requirements

  • There are no requirements in terms of educational or professional background for this course. However, it is recommneded that people joining this course should have basic understanding of how an orgnaistaion works.

Description

Banks and financial institutions are exposed to various types of risks. Operational risk is one of those risks. Operational risk is different from other risks in many ways and hence needs to be studied in detail. When a bank takes credit risk, it may potentially get rewarded with higher return but it is not the case with operational risk. Operational risk have no risk versus reward linkages. Management of these risks help in avoidance of potential losses.

Operational risks have the potential to derail business operations and even result in closure/failure of an organisation. There are many examples across the world which demonstrate how banks and financial institutions suffered millions of dollars of losses because of operational risk. Banks and financial institutions often find it challenging to manage operational risks as they are abstract in nature and difficult to quantify. Because of these factors, it is important to understand operational risk management in a structured way.

This course on operational risk in banking and financial services has been designed with an objective to help students/aspirants/participants learn following key aspects of operational risk:

  1. Understanding various types of risks and their linkages with operational risk

  2. Meaning of operational risk

  3. Types of operational risk

  4. Categories of operational risk

  5. Understanding operational risk management process

  6. Significance of data in operational risk management

  7. Tools and methods to manage operational risk

  8. Issues in managing operational risk

  9. Emerging trends in operational risk

There are case studies and industry relevant examples which will help participants relate to real life instance of operational risk. Quiz is also part of this course which help participants assess their understanding of operational risk.


Who this course is for:

  • Executives working in risk management domain
  • Compliance risk professionals
  • Students wanting to make career in operational risk management
  • Risk champions working in banks and financial institutions
  • Employees working in banks and financial institutions wanting to make career in operational risk management

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