logotype
Shop
2025: Operational Risk Management

2025: Operational Risk Management

R49,00

Course Objective: Deepen Understanding of Operational Risk Management – Explore the COSO ERM Framework’s application to operational risk, Understand operational risk drivers and their impact on organizational performance, Build robust controls to manage operational risks effectively, define and align operational risk appetite with organizational goals, evaluate and communicate risk tolerance thresholds effectively.  Distinguish between inherent and residual risk and their implications and differentiate strategic risks from operational risks and address them uniquely.

Key benefits/ Outcomes: Enhanced Operational Resilience, Improved Alignment of Risk and Performance, Practical Application of Best Practices, Informed Decision-Making, Address operational risks unique to the SADC region using the IRMSA Risk Report.

Category:

Day 1: Foundations of Operational Risk Management

Session 1: Operational Risk Management Overview

  • Defining operational risk and its components.
  • Differentiating between operational and strategic risks, focussing on the alignment between strategic objectives, strategic risks, control processes and operational risk.
  • Exploring the 11 elements of effective operational risk management.
  • Case study: Examples of operational risk failures and successes.

Session 2: COSO ERM Framework for Operational Risk

  • Overview of COSO ERM principles.
  • Applying the framework to operational risk scenarios and exploring the 20 principles.
  • Interactive exercise: Identifying risks using COSO principles. Populate the templates provided to identify, measure, mitigate risk and assess the effectiveness of controls.

Session 3: Risk Appetite and Tolerance

  • Defining and setting operational risk appetite.
  • Align key risk indicators with key performance indicators.
  • Aligning risk tolerance with organizational objectives.

Session 4: Inherent vs. Residual Risk

  • Defining and differentiating inherent and residual risks. Criteria for likelihood and impact. Root cause analysis and the Pareto principle.
  • Assessing the effectiveness of controls in reducing risk. Explore different risk management strategies.
  • Workshop: Assessing inherent and residual risks based on the effectiveness of internal controls.

________________________________________________________________________________________

Day 2: Advanced Practices and Regional Insights

Session 5: Aligning Risk and Performance

  • Linking operational risk management with performance metrics.
  • Using key risk indicators (KRIs) and key performance indicators (KPIs).
  • Understanding the relationship between KPI’s and variation in performance.
  • Understanding how risk appetite can be used to inform Board decisions.
  • Case study: Balancing risk and performance in operational decision-making.

Session 6: IIA INC Best Practices in Operational Risk

  • Internal audit’s role in operational risk management. Independent assurance
  • Combined assurance for effective oversight. The roles of the three lines in combined assurance.
  • Practical examples: Auditing operational risk processes, flowcharting, identification of key controls, automated versus manual controls, prevention versus detection controls.

Session 7: Regional Insights and the 2024 IRMSA Risk Report

  • Key findings and trends from the 2024 IRMSA Risk Report. Alignment with emerging risks.
  • Addressing operational risks specific to the SADC region. Alignment with new and emerging risks.
  • Group exercise: Identifying and prioritizing regional operational risks.

Session 8: Building an Operational Risk Management Plan

  • Participants design an operational risk management framework tailored to their organizations.
  • Operational risk reporting – development of operational risk dashboards and reporting.

Related products