This course provides a comprehensive introduction to key operational activities, the need for well thought out controls and the effects of operational risk. Failed trade settlement can have an adverse affect on many departments including trading, profit & loss accounting, regulatory reporting, in addition to settlements. The course, through case studies, demonstrates these inter-relationships. Emphasis is also on getting the participants to set criteria for reporting risk. Individuals must be able to determine with senior management when risk items get reported up through an organization based on dollar amount, aging of an item, customer exposure, firm or market exposure and many other criteria.

Objectives

By the end of the program the course participant will be able to:

• Understand the different types of risk in financial services
• Identify how their department can create risk for other departments
• Calculate the total cost of a failed settlement
• Understand how to pro-actively prevent fails from occurring
• Establish criteria of when to report situations to senior management
• Understand the difference between a negative and positive fail
• Understand the operational aspects of the Basel II Accord.
• Gain an understanding of various risk measurement techniques
• Create a Risk Assessment Plan

This course is targeted to all operational and trade support staff. This course will create a higher sense of responsibility of individuals toward their positions whether they are at a clerical, supervisory or management level. The intent is to get the attendees to be able to understand the overall effect of an error situation and get them to apply the course content to their jobs.