Course Overview

Changes in markets, techniques, technologies, and products have altered the landscape of Operations and fueled the explosive development of Operational Risk management. The regulators of financial and public companies are demanding a far greater level of disclosure and awareness by directors about the risks they manage and the effectiveness of the controls they have in place to reduce or mitigate these risks. There is also a greater realization that a major source of earnings volatility can be attributed to the way a firm operates and not “financial risk”. All these changes have triggered the need for an efficient Operational Risk Management system in organizations.

Training DurationTotal Training Hours : 12 Hours
Training Duration : 1 Week
Total Training Days : 2 Working Days
Training SchedulesWeekdays (Sunday to Thursday)

WeekEnds (Friday & Saturday)
Certifications:1) Certificate from Laurels Training Institute, Attested by Knowledge & Human Development Authority (KHDA) government of Dubai, UAE

2) Certificate from American Institute of Professional Studies (AIPS) from USA (After 15 Days of course Completion which will couriered to the attendees office address)
Learning AidsYes
Course MaterialHard & Soft Copies of Study Material
Language of InstructionEnglish
Instructor HelplineYes
1. Email
2. Social Media (For Emergency requirements)
Registration Requirements1. Passport Copy
2. Curriculum Vitae
3. Passport size photographs
4. Course Fee
Mode of Payment:Cash / Cheque / Credit Card / Bank Transfer.
Eligibility Criteria
(Who should attend this training)

• The basic qualification is high school completion certificate.

• Proficiency in English language to understand, read and write.

Course Benefits

1. Position to fully understand the need for the creation of operational risk frameworks and their impact on the strategy and processes

2.To develop the understanding of operational risk management necessary to manage, comment and understand an institution’s own risk management plans and reports

3.To provide a practical and realistic approach to the implementing of an effective, best-practice operational risk management programme and the creation of the necessary risk culture

Course Contents / Outline

Introduction to Operational Risk


Defining operational risk

Significance of operational risk

Addressing operational risk

Measuring and modeling operational risk

Basic Concepts


Loss events

Risk Factors, loss types and event/ factor controllability

Dependencies between Risk Factors and Events

Attribution of Loss

Operational Risk in Various Hotels

Introduction and Spectrum of Risks

Accounting policies, costing and pricing model

Developing objectives and identifying risks


Risk Management Agenda

Risk Management Targets

Risk Management Organization and Policies

Benchmarking Internal Processes and Resources

Identifying Process and Resource Risks

Identifying Risk Factors

Identifying and Categorizing Loss Events

Estimating potential losses – Data


Challenges to Operational Risk analysis

General measurement techniques

Historical analysis

Subjective risk assessment

Estimating potential losses – Loss distributions


Overview of probability distributions

Building a distribution

Probability distributions

Estimating risk factors

Choosing an event distribution

Operational Risk database

Analyzing risks


Aggregating risks

Monte Carlo loss simulation

Risk management alternatives

Analyzing loss events

Analyzing risky processes and resources

Analyzing risk factors

Loss prediction and prevention


Loss prediction

Loss prevention

Process reengineering and work restructuring

Product redesign and automation

Human factors engineering

ERP and reliability maintenance

Loss control



Diagnostic controls and Inventory management

Redundant systems and boundary systems

Computer security and physical security management

Internal and external audit

Loss reduction and risk avoidance


Legal risk reduction and loss isolation

Contingency Planning

Crisis Management

Risk avoidance

Quality management

Human resources management

Organizational design, Culture and relationship management

Risk financing



Financial restructuring

Asset-Liability Management

Corporate diversification



Hedging using derivatives

Contractual risk transfer

Measurement framework

ORM cycle

Framework criteria and assumptions

Current framework approaches

Role of technology

Enterprise-wide risk information systems

Challenges to ERM

Project Management for an ERM system

Basic and causal models


Operational Risk Management (ORM) model

Top-down risk models

Bottom-up risk models

Selecting a risk model

Causal models

Security risk

Systems design, implementation, and maintenance flaws

Customer misuse of products and services

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