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
DAY 2
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 comparators, 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 Ro gue 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.
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 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 Ro gue 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.
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 re “The Biggest Fraud Case in Banking History” Societe Generale Paris. Despite Millions of US money 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! Societe Generale is just another failure in a 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