Course Overview
During this five-day course you will explore the various risk exposures that may directly affect your organisation. You will gain a clear understanding of up-to-the-minute theories and systems for risk management and develop your own set of tools and techniques for combating risk within your own organisation. This is an innovative course that has been specifically designed to highlight the importance of accurate risk assessment and risk mitigation.
Course Outline
1. Introduction To Risk Management
An introduction of the concepts, theories and systems involved in currentday risk management methodologies, giving you a broad grasp and overview to this five day intensive course.
• What is risk and why worry about it?
• What are the key risk types?
• The evolution of risk management thinking
• Risk principles
• Overview of current and future risk management issues
• Enterprise wide risk management
• Integrated and holistic risk management principles
• Application and implementation within an organisation
• The risk culture versus the risk process
Exercise – Risk Register
This section will introduce you to the concept of risk identification and the construction techniques for the establishment of a risk register. The risk register is the fundamental building block for risk identification process and the eventual management of risk within an organisation.
2. Risk Exposures And Major Categories
Correct risk management requires an iterative process that allows for the identification of exposures within a corporate setting. The process must be rigorous and subject to review. The key task in the process is the contextualisation of t he risks faced and implementation of protective measures to ensure resilience within an organisation.
Categories Of Risk
• Market risk management and market influences
• Liquidity and volatility
• Interest rates
• Foreign exchange
• Operational risk
• Liquidity risk
• Solvency risk
Tools For Identification And Management
• Value-at-Risk (VaR) – calculation and use
• The concept of hedging
• Use of synthetics and markets
• Portfolio management as a risk tool
• Stress testing
• Risk models discussion and overview
Exercise
You will examine and comment on case studies to enhance your ability to identify risk and develop appropriate strategies. Individual and group exercises will be practiced.
3. Operational Risk Management
What is operational risk and how can your business monitor and protect itself from this risk? How do we capture data from across the enterprise to identify these internally focused risks?
• Basel and the development of operational risk
• The three pillars of management
• Capital allocation for operational risk management techniques
• Capital allocation models
• Monitoring operational risk
• Quantifying operational risk
• Data issues and knowledge management
Exercise
The activities in this section will enable you to set the context for operational risk within your organisation setting and allow for the further development of the individual toolkit.
4. Strategic Risk Management
• The families of risk
• Strategic versus Operational versus Tactical risk
• Understanding and applying risk management within the organization
5. Political And Sovereign Risk
• What are these risks and how do they manifest?
• Why monitor this risk?
• Measuring political and sovereign risk
• Practical effects of political and sovereign risk
• International implications of risk management
6. Risk Linkages And Value Add
Broad corporate, enterprise and market risk factors that impact operations, governance and compliance requirements
• Business continuity management
• Quality management
• Corporate governance
• Compliance
7. Identifying And Implementing Risk Standards
Do you truly understand your organisation’s risk profile? To protect your organisation from risk is one issue – finding a balance between being riskadverse – which can materially constrain your operation versus being so low risk that you expose your organisation to potentially devastating scenarios is quite another!
• Risk, reward and regret
• The gulf between data and wisdom
• Review of world standards
- Australia
- UK
- Europe
- USA
- Other
Exercise
You will examine and comment on a case study presented within a structured setting and solutions will be offered in a team basis.
8. Practical Assessment Exercises
Tasks will be issued on an individual and team basis that will confirm your skills and ability to apply risk management techniques. Exercise will be by way of team discussion of case studies and individual comments on practical risk problems.