NUS RMI Specialist Diploma in Operational Risk Management

Overview

Operational risk is inherent in all banking products, activities, processes, and systems, and the effective management of this risk is a fundamental element of a bank’s risk management programme. It can be defined as the risk of loss resulting from inadequate or failed internal processes, people, systems and management or from external events.

It is relatively straightforward for an organisation to set and observe specific, measurable levels of market risk and credit risk. By contrast it is relatively difficult to identify and measure or assess levels of operational risk and its many sources. Historically organisations have accepted operational risk as an unavoidable cost of doing business. However, in the wake of significant losses incurred in “rogue trading” scandals, massive regulatory settlements by banks for regulatory breaches, the LIBOR fixing scandal, loss of customer data, cybercrimes and the failure of outsource service providers, operational risk is now in the forefront of CEOs’ and CROs’ agendas and many senior managers acknowledge that operational risk is by far their most significant risk.

The program in Operational Risk Management comprises three (3) modules and is designed to enable participants:

• Gain an understanding of the Singapore Financial System; and the legislative and regulatory structure governing the financial services industry
• Understand the nature of operational risk, the key drivers, and its inter-relationship with other risks such as credit risk, market risk, liquidity risks and reputation risk
• Understand the importance of good risk governance and the impact of risk culture on the effective management of operational risks
• Recognise how operational risk management can add value and assist the organisation in achieving it business objectives
• Understand and apply the principles, framework, policies, tools and methodology for identifying, assessing, analysing, controlling, mitigating, monitoring and reporting operational risk in all the bank’s activities
• Understand the relationship between operational risk exposure and risk capital, and the different approaches for measuring operational risk capital.

Upon completion of the course and meeting a minimum of 75% attendance, each participant will be awarded a Certificate of Attendance (COA) by NUS RMI. Additionally, each participant who successfully completes the course and pass the Assessment requirements will be awarded the NUS RMI Specialist Diploma in Operational Risk Management.

Topics Include:

Module 1

• Overview of the Singapore Financial System and the role of major players and participants in the financial services industry
• The Legislative and Regulatory Structure governing the financial services industry
• Objectives, Functions and Role of the Monetary Authority of Singapore (MAS)
• Current state and trends in the financial services industry from a global perspective

Module 2

• Risk Management Principles
• Operational Risk Management Framework
• Operational Risk Governance and the 3 Lines of Defense
• The Corporate Operational Risk Unit
• Risk Culture and Risk Awareness
• Operational Risk Appetite and Tolerance
• Operational Risk Policies and Policy Management
• Operational Risk Management Process (identifying, assessing, analysing, controlling, mitigating, monitoring and reporting operational risks)
• Operational Risk Controls, Tools and Methodologies including Risk and Control Self-Assessments (RCSA), Key Risk Indicators (KRI), Scenario Analysis (SA) and Action Plans
• Environmental scanning and analysis to identify trends and new/emerging risks

Module 3

• Operational Risk Mitigation (business continuity planning and insurance)
• Operational Risk Loss/Event Management (data collection, classification, analysis, and reporting)
• Operational Risk Captial
• Operational Risk Profliling, Reporting and Management

Target Group Of Participants

This certification program is aimed at the following groups of participants:

• Professionals who are currently working in the Financial Services Industry and are performing Risk Management functions who wish to enhance their knowledge and skills in Operational Risk Management or to upgrade themselves or to obtain formal professional certification for their skills and knowledge.
• Professionals who are currently working in other segments in the Financial Services Industry who wish to acquire skills and knowledge, and to obtain formal professional certification in Operational Risk Management to enable them to value-add or who aspire to move into Operational Risk Management functions.
• Fresh tertiary graduates (Degree holders) who aspire to join the Financial Services Industry and who wish to explore career opportunities in Operational Risk Management.

Minimum Entry Requirements

• Degree holders or equivalent professional certification or qualifications in any discipline from recognised institutions, both local and overseas, with or without relevant work experience in the Financial Services Industry.
• Full GCE A Levels / Polytechnic Diploma holders in commerce, business, accounting or finance-related discipline (other disciplines are on a case by case basis) from recognised institutions, both local and overseas, with at least 5 years of relevant work experience in the Financial Services Industry.

Lecturer

Patricia Jalleh