Use a systematic approach to achieve a well controlled and cost effective back office by implementing the latest, leading internationally recognised, management techniques.
- A complete systematic control and management programme suitable for all environments
- Build the correct structure for effective front, middle and back office operations optimising 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
Course objectives
The course will provide you with a simple, but very effective, systematic control and management programme which will greatly enhance your back office operations. By using a pre-emptive control strategy you will be able to prevent problems occurring and create the environment to develop a highly skilled, flexible and well motivated work force which provides full cover for all areas of your operation.
It will show you how to make your operations fail-safe and cost effective, with a high quality performance of which you will be proud.
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 and effect analysis
- Dealing with cause / avoiding effect
- Problem escalation
- Generic cause factors / conformity of products
Bond simulation: participants will use bond analytic software to understand fixed income exposures and the role convexity plays.
Organisation and reporting lines
- Separation of function: front and back office, risk control and audit
- In line with industry standard and best practice
Case study: prioritising actions to ensure optimum positive effect
- Analysing and 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 and reporting
Day 2
The back office as a revenue earner
- Funding and cash management
- Errors, fines and 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 cost s and the impact for back and middle offices
Staff management
- Effective delegation
- Setting objectives
- Acceptance of responsibility
- Motivation and stress control
- Team building / the use of peer group pressure
- Training, job rotation and 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’
New products review
- New products steering committee
- Evaluating and 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 and 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 re “The Biggest Fraud Case in Banking History” Société Générale 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 optimise 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
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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
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