Delegates will be provided with a detailed case study for an international bank, this will form the basis for the practical exercises on the course.
Delegates will learn about the need to decide how their organization is to be divided so as to ensure full risk coverage; what Entities do we need, functional, product or process – perhaps a mixture of all three!
Delegates, in groups, will interview members of the Board to obtain more detail about the bank and the directors’ view of the risks that confront it.
Next we will discuss the concept of Corporate Risks; are they simply risks that are common across all areas of the organization or are they something different. Corporate Risks often need to be linked to individual Entities within the organization; this aspect will be fully covered here, as will the concept of Strategic Risk.
Delegates will discuss the concept of probability and how to decide on the frequency to apply; how many levels should there be? Also the various Risk Parameters that need to be considered at the Corporate Level will be discussed.
Finally, the subject of Risk Appetite will be discussed; should this be established at the corporate level or by entity. If it is to be by entity, what if the entity is not a function? The “ownership” of the appetite will then be discussed accordingly.
Using the data gathered from their interviews, plus data in the case study, the delegate groups will have to determine:
- The Asset Types to be used in their Risk Profiling
- The Probability criteria to be used
- The Strategic Risks
- The Corporate Risks
The concepts of Emerging Risks and Composite Risks are covered as part of the overall discussion, delegates will get a chance to define either one of them.