Operational Risk Management and Mitigation (ORM)

Introduction

This is a risk management and risk mitigation training course. The goal is to equip participants with the skills to effectively manage risks throughout their operations.

The course emphasizes the importance of Operational Risk Management (ORM) certification, focusing on the critical balance between risk and reward in today's advanced and competitive environment.

Participants will gain an understanding of risk governance, including the identification, quantification, and mitigation of risks that could disrupt the smooth operation of their organization.

The course covers the characteristics and causes of risks associated with people, processes, systems, and organizations, along with strategies to avoid such risks. It also addresses risk-avoiding behaviors and risk management practices for both internal and external factors.

By the end of this course, participants will have the skills and knowledge to conduct thorough self-assessments of their operations, develop effective risk management plans, and implement operational risk mitigation strategies in their respective environments.

Objectives

Upon completion of this ORM Operational Risk Management course, participants will be able to:

• Understand the benefits of proactive Operational Risk Management.
• Formulate an Operational Risk Management Plan that includes all risk management processes and identifies key risks.
• Perform Risk Identification and Risk Analysis using tools and techniques learned in the training.
• Develop a risk response strategy and implement the identified strategies.
• Establish an Operational Risk Management Framework tailored to their organization.
• Efficiently assess, document, report, and manage Operational Risk.
• Apply the Risk Management approach in their daily operations.
• Integrate Risk Management into their operational processes.

Training Methodology

• Classroom and tutorial presentations and lectures
• Case studies showcasing practical aspects of operational risk management
• Group discussions on various risk management topics
• Hands-on activities with ORM tools
• Simulated exercises for risk assessment and response
• Guided workshops on risk management planning
• Risk response simulations
• Individual and group assignments
• Feedback sessions
• Q&A sessions
• Selection of ORM software and online resources for report compilation

Course Outline

Unit 1: The Foundations of Operational Risk Management

• Definitions of Risk and Operational Risk Management
• Advantages of Operational Risk Management
• Understanding the Operational Risk Management Framework
• Overview of the six stages in the Operational Risk Management Cycle
• Introduction to Enterprise Risk Management
• Risk Identification and problem understanding
• Applicability of risk standards
• Effective risk evaluation

Unit 2: Risk Management Methods

• Addressing Risk Management challenges
• The role of Operational Risk Management in corporate structure
• Application of probability and statistics in Operational Risk Management
• Risk Modeling Techniques
• Failure Modes and Effects Analysis (FMEA)
• Risk Quantification techniques
• Assessment of Risk Maturity Level and Risk Appetite
• Developing an appropriate Risk Response plan

Unit 3: Risk Governance

• Implementing non-legally binding risk controls
• Creating Key Risk Indicators (KRIs)
• Qualitative and quantitative risk analysis
• Strategic risk actions implementation
• Periodic updates of risks
• Risk Governance and the Three Lines of Defense model
• Risk Management documentation and oversight
• Project Risk Management

Unit 4: Bringing the Operational Risk Management Framework into Action

• Overcoming barriers to Risk Management
• Long-term communication strategies for Risk Management
• Developing a Risk Management Vision Statement
• Ensuring stakeholder ownership of Risk Management
• Creating a risk-aware organizational culture
• Understanding the impact of politics and culture on ORM implementation

Unit 5: Integrating Risk Management into Business Activities

• Utilizing web-based Risk Management tools
• Conducting Risk Management for routine activities
• Best practices for Operational Risk Management implementation