Operational Risk Training Managing Operational Risk & AMA Toronto Nov 3, 2011
Operational Risk Policy. Risk Management Policy Planning of operational risk management....
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Transcript of Operational Risk Policy. Risk Management Policy Planning of operational risk management....
![Page 1: Operational Risk Policy. Risk Management Policy Planning of operational risk management. Identification of business lines. Mapping of business lines.](https://reader036.fdocuments.in/reader036/viewer/2022062410/5697c00a1a28abf838cc7d14/html5/thumbnails/1.jpg)
Operational Risk Policy
![Page 2: Operational Risk Policy. Risk Management Policy Planning of operational risk management. Identification of business lines. Mapping of business lines.](https://reader036.fdocuments.in/reader036/viewer/2022062410/5697c00a1a28abf838cc7d14/html5/thumbnails/2.jpg)
Risk Management Policy
• Planning of operational risk management.
• Identification of business lines.
• Mapping of business lines.
• Determine sources of external loss data.
• Identify process of inferring external loss data.
• Classification of loss events.
• Consolidation of loss events.
• Reporting procedure for loss events.
![Page 3: Operational Risk Policy. Risk Management Policy Planning of operational risk management. Identification of business lines. Mapping of business lines.](https://reader036.fdocuments.in/reader036/viewer/2022062410/5697c00a1a28abf838cc7d14/html5/thumbnails/3.jpg)
Mapping Business Events
• Business units
• Business lines
• Activity groups
![Page 4: Operational Risk Policy. Risk Management Policy Planning of operational risk management. Identification of business lines. Mapping of business lines.](https://reader036.fdocuments.in/reader036/viewer/2022062410/5697c00a1a28abf838cc7d14/html5/thumbnails/4.jpg)
Investment Banking Unit
![Page 5: Operational Risk Policy. Risk Management Policy Planning of operational risk management. Identification of business lines. Mapping of business lines.](https://reader036.fdocuments.in/reader036/viewer/2022062410/5697c00a1a28abf838cc7d14/html5/thumbnails/5.jpg)
Commercial Banking Unit
![Page 6: Operational Risk Policy. Risk Management Policy Planning of operational risk management. Identification of business lines. Mapping of business lines.](https://reader036.fdocuments.in/reader036/viewer/2022062410/5697c00a1a28abf838cc7d14/html5/thumbnails/6.jpg)
Other Business Units
![Page 7: Operational Risk Policy. Risk Management Policy Planning of operational risk management. Identification of business lines. Mapping of business lines.](https://reader036.fdocuments.in/reader036/viewer/2022062410/5697c00a1a28abf838cc7d14/html5/thumbnails/7.jpg)
Audit Policy of Operational Risk Management
• Fixing audit bench standards.
• Recognition of high loss events.
• Suggestive measures of risk mitigation.
• Strategies for functional departments.
• Adequacy of risk assessment.
• Compliance procedures for audit.
• Review of internal audit systems.
![Page 8: Operational Risk Policy. Risk Management Policy Planning of operational risk management. Identification of business lines. Mapping of business lines.](https://reader036.fdocuments.in/reader036/viewer/2022062410/5697c00a1a28abf838cc7d14/html5/thumbnails/8.jpg)
Technology Policy
• Procurement of systems
• Development of software
• Analysis procedures for operational risk
• Data base management
• Estimation of capital charges for technology investment
• Compilation of technology profiles
![Page 9: Operational Risk Policy. Risk Management Policy Planning of operational risk management. Identification of business lines. Mapping of business lines.](https://reader036.fdocuments.in/reader036/viewer/2022062410/5697c00a1a28abf838cc7d14/html5/thumbnails/9.jpg)
Functional Policy
• Identification of operational loss events
– Products
– Processes
– Systems
• Development of reporting formats
– Data collection
– Department reports
– Events reports
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Functional Policy
• Operational risk management committee
• Business line
• Department policy
• Circle office policy
• Bank area policy
• Field level policy
![Page 11: Operational Risk Policy. Risk Management Policy Planning of operational risk management. Identification of business lines. Mapping of business lines.](https://reader036.fdocuments.in/reader036/viewer/2022062410/5697c00a1a28abf838cc7d14/html5/thumbnails/11.jpg)
Circle Office Policy
• Recognition of operational loss
• Measurement procedures
• Review of operational loss data
• Mitigation procedures
• Timely data transfer to head office
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Branch Office Policy
• Identification of operational loss events.
• Preparation of operational loss reports.
• Timely transfer of data to circle office.
• Timely transfer to operational risk management committee.