Enterprise Risk Management Short Certificate Course
On going

The whole function of financing both from the money and capital market perspectives is about managing risk. Indeed, risk management goes beyond the financial and extends to the non-financial sector of the economy.

Enterprise Risk Management goes a step further. It involves taking a holistic look at risk management in the organization, stressing the interrelationship of risk, the impact of any risk taken on the whole organization and the ways of managing such risks in ways that the organizations goals will not be threatened and values will be added rather than eroded in the attempts to achieve the objectives set.

Professionals in the financial and non- financial sectors must therefore be able to understand the concept of enterprise risk management and be able to apply these in the handling of their day-to-day functions.

Specifically, the course aims to equip candidates with the knowledge of:

• The theory and practice of risk management
• The nature of risks faced by financial and non-financial institutions and the impacts thereof.
• Different techniques for identification, evaluation, and analysis of risks
• Risk Mitigation techniques.
• The risk management frameworks and how they are used in managing risks.
• Enterprise Risk Management and the latest developments in Risk Management Practice

Course Content

Section A

Module 1: Introduction

• Evolution of Risk Management
• Definition of Risk Management
• Why Risk Management?
• Classification & Typology of Risks

Module 2: Risk Classification

• Financial & Non-Financial Risks
• Pure & Speculative Risk
• Downside Risk & Upside Risk
• Fundamental & Particular Risk
• Static & Dynamic Risk

Module 3: Perspectives on Risk Management

Traditional View versus Modern view of risk management

SECTION B

Module 1: Explanation of Key Concepts and Terminologies:

• Risk Philosophy; Risk Appetite; Risk Tolerance, Risk Culture, Risk Register, Risk Matrix, Risk Crystallization, Risk Limit, Risk Owner, Risk Policy, Risk Response, Risk Transfer, Risk Mapping, etc.

Module 2: Key Risk Indicators (KRIS)

• Definition and examples of KRIs in different kind of risks
• Usage of KRIs

Module 3: Risk Management Standards

• Explain the various risk management standards, the peculiarities and preference of use in managing risks in different industries and sectors.

Module 4: Risk Management Process

• Risk Identification, Assessment, Measurement, Mitigation, Control and Monitoring

SECTION C

Module 1. Risk Management and the Environment

• Environmental factors influencing the practice of risk management.

External

Regulatory, Financial, Political, Cultural, & Economic environmental factors and their influences on the practice of, and level of, risk management maturity, in the organisation.   

Internal

Strategies, Objectives, Capabilities, Processes, Structure, Systems, Culture and their influence on the adoption of the principles and practices of risk management in the organisation.

Module 2: ESG Risk Management & Sustainability

SECTION D

Module 1: Introduction to Major Risks impacting organizations.

• Operational Risk
• Credit Risk
• Market / Liquidity Risk  
• Regulatory and Compliance Risk
• Legal Risk
• Reputational Risk
• Strategic Risk

Module 2: Operational Risk

• Definition, types, and sources of Operational Risk, with relevant examples.

Operational Risk Identification

• Operational Risk Events (ORE)

Operational Risk Influencers. 

• Factors influencing Operational Risk in organizations.

Operational Risk Management Framework

• Components of the Framework
• Operational Risk Management Tools

Approaches to Operational Risk Measurement

Basic Indicator Approach

Standardised Approach

Advanced Measurement Approach

Description and qualifying criteria for the usage of any of these risk measurement approaches.

 

Business Continuity Management

• What is Business Continuity?
• Objectives of Business Continuity
• Business Continuity Process

Module 3: Credit Risk

• Definition, types and causes of Credit Risk
• Credit Risk Analysis & Assessment
• Credit Risk Mitigation Techniques
• Credit Risk Management (CRM) FRAMEWORK
• Key Components of a sound credit risk management system

Credit Risk Measurement Techniques

• Standardised Approach
• Internal Rating Based Approaches- Foundation IRB & Advanced IRB
• PD- Probability of Default
• EAD- Exposure at Default
• LGD- Loss Given Default
• EL- Expected Loss

Credit Risk Rating

• Obligor, Facility, Portfolio, Project Risk Ratings & Retail Scoring.

Module 4: MARKET & LIQUIDITY RISK

Overview of Market Risk.

• Types of Market Risk: Liquidity Risk, Interest Rate Risk, Foreign Currency Risk, Equity Risk, Commodity Risk
• Trading Book and Banking Book; the distinction between the two

Market Risk Measurement Techniques

Liquidity Risk

• Liquidity Ratios Analysis, Gap Reports, Large Funds Provider Report, Volatile Funds Report, Liquidity Ratio Report

Rate Risk

• Repricing Gap, Simulation/Scenarios, Earnings at Risk & Mark-to-Market

Foreign Currency Risk

• Open Position Limits, Mark-to-Market, Value at Risk

Equity Risk

• Concentration Limits, Portfolio Value (Mark-to-Market), Value at Risk

Others

Dealers’ Limits, Products’ Limits, Counterparty Limits, Stop Loss Limits, Profit taking Limits

Market Volatility & Stress Testing

• Definition of Stress Testing
• Objective of Stress Testing
• Stress Testing Approaches

Module 5: Legal Risk

• Meaning & Importance of Legal Risk
• Legal Risk identification and assessment
• Framework for Managing Legal Risk
• Case studies of Legal Risk Mismanagement

Module 6: Strategic Risk

• Overview of Strategic Risk
• Framework for Management of Strategic Risk in organizations
• Case studies of strategic choices and effect on SRM

Module 7: Regulatory/Compliance Risk

• Definition and Meaning
• Rising Importance of Regulatory and Compliance Risks and the consequences of non-compliance
• AML/ CFT and emerging global compliance issues
• Identification and assessment of regulatory and compliance risks in organizations
• Case Studies of how global institutions manage regulatory and compliance risks

Module 8: Reputational Risk

• What is reputational Risk?
• Objectives of Reputational Risk Management
• Managing Reputational Risk in organizations – whose responsibility?
• Identification and assessment of reputational risk
• Case studies highlighting the importance of reputational risk management in organizations.

SECTION E

Module 1: Enterprise Risk Management

• Evolution of Enterprise Risk Management
• Definition of ERM
• Benefits of ERM
• ERM FRAMEWORKS ; COSO, ISO etc and reasons for their preferential usage by different organizations.
• Practical Application of ERM in various institutions – Case studies

Module 2: Risk Based Supervision (RBS)

• Why Risk Based Supervision
• Modalities for RBS
• How to achieve effective RBS

Module 3: Derivatives

• Definition & Types
• Use of Derivatives
• Effectiveness of Derivatives in Managing Risk
• Limitation of use of Derivatives as a risk management tool
• Case studies

Module 4: Securitization

• Definition and examples
• Why securitize?
• Effectiveness in Managing Risk
• Case studies

Module 5: Contemporary Issues in Risk Management

• Case Studies

This is a  3 - month (12 weekends) short certificate course