Euromoney Audit Training

This highly rated and practical training course has been developed by a group of successful practitioners and has proved its effectiveness in many differing environments. It provides a systematic approach to operational control and a simple methodology for solving difficult problems. The delivery style uses a highly experienced industry specialist and contains a unique blend of straight lecturing, role play and individual tutoring/counseling, specifically tailored to each delegate's individual needs.

This 4 day practitioners guide to achieving a successful and effective Back Office operation:

• A complete Systematic Control and Management Program suitable for all environments
• Build the correct structure for effective Front, Middle and Back Office Operations
• optimizing the use of STP and achieving settlement efficiency
• Create a pre-emptive control strategy and reduce your risks, costs and errors
• Develop a generic, evolutionary approach for the processing of all products
• Improve the efficiency of your control, processing, settlement and reporting activities
• Learn how to use a responsible management philosophy and practice which will create the
• environment for unequalled success
• Gain the knowledge to make your back office a key revenue earner by enhancing cash
• management and controlling non-earning assets
• Develop those essential management skills which will enable you to motivate your staff to
• superior performance

Who Should Attend

• Senior and Middle Management
• Operations Managers
• Middle Office and Risk Managers
• Financial and Product Control Staff
• Treasury Managers
• Auditors and Internal Control Officers
• IT and EDP Operatives
• Regulators
• Compliance Staff
• Accountants and Consultants
• Graduate and Management Trainees

Day 1

Pre-Emptive Control, Improved Quality Performance And Productivity

• Quality defined
• The cost of quality
• The quality-productivity link
• Pre-emptive quality controls
• Effective quality control process
• The optimum control point
• Key risk controls
• Cause & effect analysis
• Dealing with cause / avoiding effect
• Problem escalation
• Generic cause factors / conformity of products

Case Study
DVD   Analyzing Major Banking Collapse
Followed by group discussion for its relevance to Back Office Operations and Senior Management

Organization and Reporting Lines
Separation of function: front and back office, risk control and audit. In line with industry standard and best practice

Case Study
Prioritizing actions to ensure optimum positive effect

Analyzing & solving problems
The hierarchy of problem solving
Empowering the people
Controlling the people


Procedures

Production, use and maintenance
Control diaries / control points
Allocation and Acceptance of responsibility

The value of a simple skills training Matrix

Project Management

Management by Objectives
Use of project briefs
Monitoring & reporting

 

Day2

The Back Office as a Revenue Earner

• Funding & cash management
• Errors, fines & losses
• Margin controls/Cost reductions

Case Study
Non-Earning Assets control / Margin Controls

Processing

• Generic processing approach
• Process management
• Systematic process control
• Control of derivative products

STRAIGHT THROUGH PROCESSING
         
An introduction to the benefits in terms of  quality, efficiency, productivity costs and the impact for  Back and Middle  Offices

Staff Management

• Effective delegation
• Setting objectives
• Acceptance of responsibility
• Motivation & stress control
• Team building / the use of peer group pressure
• Training, job rotation & staff development
• The use of positive reporting
• Controlling stress
• Effective appraisal: the performance / rewards link

Case Study: Staff appraisal
Setting objectives, monitoring performance and rewarding results fairly between staff. This case study covers comparatios, ranking, salary and bonus allocations

 

Day 3


Introduction to: The BIS/BASEL Accord as it relates to Operational Risk

• Analysis / Impact to all Back Office areas
• Key points in new Basel II Capital Accord
• Discussion on the implications for Risk and Control Managers
• How to build an operational risk scoring process
• Review of the major types of operational risks
• Measurement framework / scoring approaches
• Workshop on KRI’s / KPI’s

New Products Review

• New products steering committee
• Evaluating & controlling risk
• Pre-empting problems

Group Discussion: Controlling the Rogue Trader

Controlling potential rogue traders using a matrix of simple control mechanisms

Case Study: Evaluating a new Derivatives Product

Identifying the risks inherent in a proposed new product and engineering its processing into existing work practices and procedures

Business Continuity Planning


Review and Group discussion on the Basle Committee on Banking Supervision for the High Level Principles for Business Continuity.

Crisis Management & New Product Evaluation

• How to deal with crisis
• How to regain control
• Risk limitation

Case Study : Controls in the Money Market, FX and Derivatives Environment

This case study involves the development of a control process which can cover all potential products, using one generic action plan


Management Information

• Status reports
• Comparative analysis
• The use of visual reports
• Structure of reports / the control pyramid

 

Day 4

Case Study – Allied Irish Bank (ALLFIRST)

This case study will clearly highlight how a lack of proper controls, knowledge and infrastructure can have such devastating consequences. It will also show how this could have been identified and easily prevented.


The use of Limits as a Control Mechanism

• Guidance vs Mandatory
• Position controls, Volume, Credit
• Delivery / settlement limits

“Optional”  Case Study: Solving Complex Problems (The Satellite Link)

Using the skills developed on the course, delegates will be introduced to a seemingly complex, real life problem. They will use a systematic problem analysis process to identify cause elements and provide a structure for ultimate resolution and improved standards.

The Role of the Middle Office

• The Middle Office as a part of overall risk control
• Structure
• Reporting Lines / Responsibilities
• How to control your Middle Office
• The central control file
• Expense Control and the Role of the Middle Office

Case Study: Group discussion 

“The Biggest Fraud Case in Banking History” Societe Generale Paris.

Despite Millions of US$ spent on highly developed IT and Risk management systems, one person was allowed to go undetected for years building up positions of $50 billion  and fantastic losses of some US$10 BILLION!
This is just another failure in a very very long line of Banking  failures/crisis in which the only real difference is the size of the actual loss.  
This session will clearly demonstrate how the Middle office/Back Office and other departments with responsibilities for risk could have easily prevented this fraud.

Auditors

• How to optimize the use of auditors as part of the Control Process
• Modern on-going and pro active auditing that pre empts problem generation
• Changing approach to auditing, risk based auditing.

Course Summary and Close

 

 

• Kevin Merry

  Kevin is a leading international trainer and consultant with over 27 years extensive experience with major “blue chip” financial institutions including JP Morgan, CIBC, Mizhuo and other leading global banks. Kevin now specialises in training and focuses on five main areas: "Operational Risk Management & Measurement", "Back Office Management", "Effective Middle Office", “Auditing” and "Understanding Financial Products". 

  Courses run by this instructor

  • Back Office Management - New York City
  • Managing and Measuring Operational Risk - New York City

Interested in holding this course in-house? Please fill out your details and a member of our team will be in touch with more information.

Managing and Measuring Operational Risk - New York City

8-11 May 2012 (New York, United States)

A unique training course designed specifically for Investment / Commercial Banks, Securities and Asset Management Firms, Corporate Treasurers, Auditors and Financial Regulators

Applying IFRS / IAS-New York City

26-29 Mar 2012 (New York, United States)
30 Apr 2012 - 3 May 2012 (Bridgetown, Barbados)
12-15 Nov 2012 (New York, United States)

A training program providing you with a complete up to date practical analysis of the complex requirements of International Financial Reporting Standards.

Corporate Governance - New York City

27 Feb 2012 - 1 Mar 2012 (New York, United States)
23-26 Jul 2012 (Miami, United States)
10-13 Sep 2012 (New York, United States)

This practical training course examines current best practice in all aspects of corporate governance, from the new role of board committees and directors’ responsibilities and powers, to best implementation of governance in day-to-day activities. The costs and benefits of best practice governance will be examined and practical guidance will be given on such issues as the relationship with shareholders and other stakeholders, managing and meeting the expectations of the market, international investors and local government and regulatory authorities.

Applying IFRS/IAS with Optional 5th Day

26-30 Mar 2012 (New York, United States)
12-16 Nov 2012 (New York, United States)

Accurately applying IFRS is a demanding process that requires planning and thought. As well as the technical accounting changes that inevitably flow from the adoption of IFRS, the standards themselves are principles-based standards that require a good understanding of the underlying concepts as well as the application of extensive professional judgment. The application of IFRS also requires the use of fair values to record both transactions and determine balance sheet valuation for many financial assets and financial liabilities. This course will help delegates to understand the significant issues to address when applying IFRS. Participants will also receive information on the latest developments and anticipated changes to IFRS, as well as insight on how to keep their knowledge up to date in the future. Using real-world company financial statements and other case studies, delegates will learn how put IFRS accounting principles into practice and also how to understand and interpret IFRS financial statements.

Back Office Management - New York City

6-9 Nov 2012 (New York, United States)

Risk Management Oversight & Board Members & Executives - New York City

5-7 Nov 2012 (New York, United States)

This course is designed to help corporate board members understand how to respond to this challenge. We walk participants through each of the essential processes of financial and operational risk management highlighting areas where they must be in a position to challenge the risk management function. We then give considerable attention to the formation of the board’s risk sub-committee, discussing when it should take form, how it should take form and how it should function in relation to the board’s audit committee in particular.

 

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