Day Two

Embedding operational risk management across the business

Wednesday 23 September 2009

8:30 Regsitration and coffee

9:00 ENTERPRISE RISK MANAGEMENT: DELIVERING THE OPERATIONAL RISK COMPONENT

  • Understanding the ERM requirements coming out of the Basel Committee?
  • Integrating operational risk into market and credit risk metrics
  • Improving efficiency of operational risk capital allocation through an ERM programme
  • Managing reputational risk through an enterprise-wide approach

Tutor

Ferry Bleijenberg, Head of Operational Risk Management, GE CAPITAL GLOBAL BANKING

10:30 Morning Break

11:00 OPERATIONAL RISK REPORTING: BRIDGING THE RISK-BUSINESS DIVIDE

  • Questioning the assumptions: What do senior management actually know about operational risk measurement?
  • The challenges of communicating information on risk and control performance
  • Risk appetite: What is an acceptable level of tolerance?
  • Do we need a re-classification of operational risk events?
  • Undertaking causal analysis of operational risk

Tutor

Jo Powis, Head of Operational Risk and Insurance, SCHRODERS PLC

12.30 Lunch

13:30 THE USE TEST: EMBEDDING OPERATIONAL RISK MANAGEMENT INTO DAY-TO-DAY BUSINESS

  • Establishing the relationship between operational risk and the business control environment
  • Operational risk management as a source of quality assurance
  • Incorporating business feedback into operational risk management frameworks
  • Practical challenges of the use test

Tutors

Jan Hedqvist, Senior Risk Analyst, SWEDISH FINANCIAL SUPERVISORY AUTHORITY
Lars Hansén, Chief Risk Officer, SEB LIFE DIVISION

15.00 Afternoon break

15:30 OFFSETTING OPERATIONAL RISK REGULATORY AND ECONOMIC CAPITAL THROUGH INSURANCE

  • What are the differences between operational risk mitigants and controls?
  • What are the capital discounts available under Basel II if insurance is used?
  • Matching policy coverage with loss type
  • Backtesting of insurance assumptions within model and internal data
  • Applying for regulatory recognition of capital alleviation: the documentation requirements
  • How does the effect on capital of insurance compare to other measures?

Tutor

Andreas Merbecks, Managing Director, Group Operational Risk, UBS

17:30 End of day one