Operational Risk Management Fundamentals Training Course

Operational Risk Management Fundamentals Training Course

Introduction

Operational Risk Management (ORM) has evolved from a siloed compliance function into a fundamental strategic pillar for organizational resilience in the modern, digitally-driven enterprise. With global digital transformation accelerating, and new threats emerging from cybersecurity vulnerabilities, complex supply chain dependencies, and the integration of AI-driven processes, organizations face an unprecedented level of exposure to potential losses arising from failed internal processes, people, and systems. A robust ORM framework is no longer a luxury but a necessity for safeguarding capital, maintaining regulatory compliance, and preserving hard-earned reputational capital. Operational Risk Management Fundamentals Training Course provides participants with the core knowledge, methodologies, and practical tools to effectively identify, assess, manage, and monitor operational risks across all business lines, moving from a reactive loss-prevention mindset to a proactive, value-protecting one.

This comprehensive training empowers professionals to not only understand the theoretical concepts of ORM but also to embed a risk-aware culture within their daily operations. By mastering techniques like Risk and Control Self-Assessment (RCSA), establishing powerful Key Risk Indicators (KRIs), and applying effective scenario analysis, participants will be equipped to tackle critical contemporary risks, including those related to third-party risk management, process failure, and human error. The training focuses on a systematic, internationally-recognized approach to build and sustain an effective ORM program that supports business continuity and delivers operational excellence in a challenging and fast-changing global landscape.

Course Duration

5 days 

Course Objectives

Upon completion of this course, participants will be able to:

1. Define and differentiate the core components of Operational Risk versus other risk types.
2. Implement a best-practice Operational Risk Management Framework (ORMF) within their organization.
3. Conduct thorough Risk and Control Self-Assessments (RCSA) to identify and analyze key process-level risks.
4. Develop, track, and interpret high-impact Key Risk Indicators (KRIs) and Key Performance Indicators (KPIs).
5. Analyze and utilize Internal Loss Data (ILD) for effective risk measurement and control enhancement.
6. Perform meaningful Scenario Analysis to quantify and prepare for high-impact, low-frequency risks.
7. Integrate the Three Lines of Defense model into the organizational risk governance structure.
8. Understand and manage critical Third-Party Risk Management and Outsourcing Risks.
9. Develop robust Business Continuity Planning (BCP) and Operational Resilience strategies.
10. Identify and mitigate risks associated with Cybersecurity and Digital Transformation.
11. Foster a strong, pervasive Risk Culture through effective leadership and communication.
12. Design and execute effective Risk Response strategies, including mitigation, transfer, and acceptance.
13. Prepare clear and actionable Operational Risk Reporting for senior management and regulatory bodies.

Target Audience

1. Risk Management Professionals
2. Operations Managers and Process Owners across all business lines.
3. Internal Audit and Compliance Managers.
4. C-Suite Executives and Senior Management with oversight of risk.
5. Project Managers involved in process change or system implementation.
6. Business Continuity and Crisis Management Specialists.
7. Financial Control and IT Security Personnel.
8. Aspiring professionals seeking a career in Enterprise Risk Management (ERM).

 Course Modules

Module 1: Foundations of Operational Risk

• Defining Operational Risk.
• The evolution of ORM.
• The Operational Risk Management Framework cycle.
• Integrating ORM with Enterprise Risk Management
• Case Study: The Barings Bank Collapse

Module 2: Risk Identification and Assessment

• Techniques for proactive risk identification
• Conducting Risk and Control Self-Assessment workshops.
• Qualitative and Quantitative Risk Scoring and prioritization.
• Understanding and mapping inherent vs. residual risk.
• Case Study: Process Failure at a Global Bank

Module 3: Control Effectiveness and Mitigation

• Principles of effective internal controls
• Control Design and Control Testing methodologies.
• Developing effective Risk Treatment Plans and Action tracking.
• The role of root cause analysis and post-incident reviews.
• Case Study: Toyota's Unintended Acceleration Crisis

Module 4: Risk Measurement and Quantification

• Collecting and analyzing Internal Loss Data and External Loss Data
• Developing and monitoring Key Risk Indicators and Key Control Indicators
• Introduction to Scenario Analysis for tail risks
• Simple statistical approaches to operational risk measurement
• Case Study: The TSB IT Migration Failure

Module 5: Risk Governance and Culture

• Implementing the Three Lines of Defense model in practice.
• Defining and communicating Risk Appetite and Risk Tolerance statements.
• The importance of Risk Culture and behavioral risk management.
• Roles and responsibilities for effective risk reporting and escalation.
• Case Study: Wells Fargo Fake Accounts Scandal

Module 6: Managing Modern Operational Risks

• Cybersecurity Risk and Information Security controls.
• Managing Third-Party and Outsourcing Risk
• Data Risk
• Human Error and Malicious Acts
• Case Study: Target Corporation Data Breach

Module 7: Operational Resilience and Business Continuity

• Defining and building Operational Resilience
• Developing a practical Business Continuity Plan and Disaster Recovery
• Crisis Management, Communication, and Simulation Testing.
• Interdependency Mapping of critical business services.
• Case Study: Hurricane Katrina and Business Continuity

Module 8: Reporting, Review, and Embedding ORM

• Designing effective Operational Risk Reports for different stakeholders.
• Integrating ORM into strategic planning and major projects.
• Regular review and challenge of the ORM framework
• Roadmap for embedding ORM into day-to-day decision-making.
• Case Study: Nick Leeson and Barings Bank

Training Methodology

This course employs a participatory and hands-on approach to ensure practical learning, including:

• Interactive lectures and presentations.
• Group discussions and brainstorming sessions.
• Hands-on exercises using real-world datasets.
• Role-playing and scenario-based simulations.
• Analysis of case studies to bridge theory and practice.
• Peer-to-peer learning and networking.
• Expert-led Q&A sessions.
• Continuous feedback and personalized guidance.

Register as a group from 3 participants for a Discount

Send us an email: info@datastatresearch.org or call +254724527104 

Certification

Upon successful completion of this training, participants will be issued with a globally- recognized certificate.

Tailor-Made Course

 We also offer tailor-made courses based on your needs.

Key Notes

a. The participant must be conversant with English.

b. Upon completion of training the participant will be issued with an Authorized Training Certificate

c. Course duration is flexible and the contents can be modified to fit any number of days.

d. The course fee includes facilitation training materials, 2 coffee breaks, buffet lunch and A Certificate upon successful completion of Training.

e. One-year post-training support Consultation and Coaching provided after the course.

f. Payment should be done at least a week before commence of the training, to DATASTAT CONSULTANCY LTD account, as indicated in the invoice so as to enable us prepare better for you.