This practical 4-day program will consist of:
- A review of the current state of risk management
- Update on the current crisis sweeping the globe and the role of risk management
- Current initiatives (Basel III, Solvency II) that impact all financial and non-financial organizations
- The structure of risk management
- Risk appetite, probability, uncertainty, and the volatility of cash flows
- Corporate governance – The role of the Board of Directors and Management
- Defining ERM within the strategic plan
- Defining strategic goals and the linkage to risk management
- Key Risk Indicators (KRI’s)
- The universe of risk. Definitions within the categories
- Systemic risk - Country risk, political risk and others
- Organization specific risk, including Operational risk, Market risk and Credit risk
- Identifying the activities that cause the risk
- The use of risk management tools
- Measuring return against risk
- Risk Adjusted Return on Assets (RARoC) and
- Economic Value Added (EVA) are two of the most common
The extensive efforts that have gone into building ERM frameworks over the last several years appears to have been ineffective in dealing with the current global crisis. Industry after industry and country after country appear to have been unable to manage the risks they faced which has led to a significant reshaping of the financial world. This programme will explore the crisis, identifying the weaknesses in risk management programmes and focusing on the things that were done right. Basel II and Basel III will be represented, along with the framework they provide.
This is a comprehensive programme that is essential for:
- Executive management.
- Senior management.
- Risk professionals.