The current environment and recent history has shown the dangers of ineffective or defective Operational Risk Control. Consequences can be massive in terms of financial losses, reputation besides personal career prospects.
Regulators are now also paying much more attention to Risks and Controls in Operations in assessing a companys safety, security, and hence Regulatory Capital as required under Basle 2.
Recent events have also made Regulators far tougher and less forgiving to subjects shortcomings and lapses.
This course within one day provides a good Risk and Controls awareness for operations. It helps the early identification of risks, an application of appropriate and timely controls, and helps reduce the possible escalation of dangerous situations within normal day-to-day activity.
TRADE LIFECYCLE OVERVIEW
Order Management
Trade execution
Trade capture
Trade enrichment
Trade agreement
Settlement instructions
Pre-value date statuses
Failed trades
Trade settlement
Static Data
PRIMARY RISKS IN THE TRADE LIFECYCLE
Focus on each trade lifecycle component to identify risks giving rise to monetary loss and reputation loss, for reasons such as:
Inaccurate securities static data
Trading position differences between FO & BO
Unconfirmed trades with counterparties
Late settling trades
PRIMARY RISKS IN OTHER OPERATIONS ACTIVITIES
Focus on a variety of non trade lifecycle activities to identify risks, for reasons such as:
Safe custody holdings in incorrect accounts
Free of payment settlement
Unnecessary securities borrowing
Inaccurate positions resulting from corporate actions
PRIMARY CONTROLS
Verification
Four Eyes Checking
Reconciliation
Segregation of Duties
Culture
DETAILED RISK ANALYSIS
Delving deep into numerous operations scenarios, pre-fined problems will be analyzed in order to:
State the specific risk
The probable cause
The ideal control
How the control is to operate
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