Operational Risk in the Modern World

Personal Experience, Understanding and Communication of Operational Risk

• Personal risk experiences (work and life) and risk acceptance

• Case studies: The risk from personal experience

• The ‘most risk-aware individual’

The definition of operational risk:

• How to understand/measure risk and the difference it makes

• Why it matters

This operational risk training looks at risk appetite

Statistics and risk reporting:

• Risk Control Self-Assessments

• Key Risk Indicators

• Resilience

Case studies:

• Lessons from the 2008 Financial Crash – Anglo-Irish Bank

Social Changes: People Aren't Sure What to Say Anymore

• Environment, Social & Governance

• Changes in social awareness

• Risks for organisations

• The risk of top positions

• The power gradient: Entertainment media

• Other organisations

Risks for banks

Legal and reputational risk

Case studies:

• ‘Me Too’, ‘Black Lives Matter’

• Coutts and Nigel Farage, BBC Director General Tony Hall

• Russell Brand (ongoing), BBC, and Director General Tony Hall and Tim Davie

World Crisis I: Global Warming Means Change in Extreme Risk, But Which and How?

• Extreme risk

• The eye on the storm, global: Rise of disaster events

• Economic costs of disasters

• Greenhouse gases

• Disaster fatalities (Earthquakes and Heatwaves)

Case study: Earthquake in Turkey and Syria 2023

Sustainability:

• The challenge of sustainable finance

Lessons for banks

World Crisis II: The Weaponisation of Everything

• Organised crime and state links behind cybercrime:

• Fraud

• Hacking

• Ransomware

Case study: Cybercrime for banks

Industrial espionage and state links

War & Nuclear, biological, and chemical futures

Case Study: The Millennium Hotel and the Salisbury Poisonings

What this means for banks

What this means for customers

Groupthink and hierarchy in risk reporting

Case study: The Bay of Pigs and the Cuban Missile Crisis

A Scenario-Based, Team Role-Playing

• Operational risk workshop: a simulation exercise with the UK financial sector (join a team, make some choices, then make your moves):

• Explanation of the rules

• Up to 5 teams

Make your moves:

• Setting the scene

• Scenario choices

How this crisis plays out:

• Coping with crisis

• Who manages

De-brief:

• What worked well, and what needed improvement?

Case studies: Parallels and lessons

Course Wrap-Up:

• Lessons learned

• Changes planned

• Remaining questions and issues

Training Objectives

This operational risk training will equip participants with the tools and understanding to handle an ever-changing and volatile risk environment. By attending, participants will:

• Develop a deeper understanding of: The personalisation of risk

• Risk appetite

• Legal and reputational risks

Explore extreme risks, risks arising from global crises, and systemic challenges.

Learn how to apply advanced concepts in risk measurement and reporting.

Take part in interactive team-based simulations to solidify learning through practice.

Training Course Summary

This two-day operational risk management course at Redcliffe Training covers the evolving risk landscape in an unstable world.

Delve into social changes, world crises, and their impact on operational risk. Examine high-profile incidents, lessons from the 2008 Financial Crash, and recent global events. Take part in a team-based simulation exercise, where you’ll face real-world risk scenarios in accelerated time. But most importantly, learn from a leading industry expert with unparalleled experience in the fundamentals of operational risk management.

By successfully completing this course, you will leave with a robust understanding of operational risk management. Most importantly, upon success, you'll have actionable next steps to install within their organisations.