This comprehensive course provides in-depth coverage of operational risk management frameworks, control methodologies, and loss prevention strategies across various industries and organizational contexts. Participants will learn to identify, assess, monitor, and mitigate operational risks that arise from people, processes, systems, and external events. The curriculum covers operational risk taxonomy, control self-assessment, loss data analysis, key risk indicators, and scenario analysis techniques. Through practical exercises and industry case studies, learners will develop the skills to build robust operational risk management capabilities that protect organizational value and support business objectives.
Operational Risk Management: Frameworks, Controls, and Loss Prevention
Governance, Risk and Compliance
October 25, 2025
Introduction
Objectives
Upon completion, participants will be able to:
- Design and implement operational risk management frameworks
- Conduct comprehensive operational risk assessments
- Develop and evaluate operational controls
- Implement loss data collection and analysis processes
- Design and monitor key risk indicators
- Facilitate risk and control self-assessment programs
- Apply scenario analysis for capital calculation
- Integrate operational risk with business continuity
- Manage operational risk in third-party relationships
- Communicate operational risk information to stakeholders
Target Audience
- Operational Risk Managers
- Internal Control Professionals
- Process Owners and Business Unit Managers
- Internal Auditors
- Compliance Officers
- Business Continuity Managers
- Quality Assurance Staff
- Operations Leadership
Methodology
- Operational risk assessment workshops
- Control design and evaluation exercises
- Loss data analysis case studies
- RCSA facilitation practice
- KRI development sessions
- Scenario analysis calculations
- Mini-case studies of operational risk events
- Syndicate discussions on control challenges
Personal Impact
- Enhanced operational risk assessment capabilities
- Improved control design and evaluation skills
- Stronger data analysis and interpretation abilities
- Better incident investigation competencies
- Increased confidence in risk quantification
- Advanced problem-solving in operational contexts
Organizational Impact
- Reduced operational losses and incidents
- Improved control environment effectiveness
- Enhanced regulatory compliance
- Better resource allocation for risk mitigation
- Stronger operational resilience
- Increased stakeholder confidence
Course Outline
Operational Risk Foundation
Operational Risk Concepts- Definition and scope of operational risk
- Operational risk taxonomy and categories
- Regulatory requirements (Basel, SOX, etc.)
- Business case for operational risk management
- Operational risk management framework components
- Governance structure and roles
- Policy and procedure development
- Culture and awareness programs
Risk Identification and Assessment
Identification Techniques- Process mapping and analysis
- Risk and control self-assessment (RCSA)
- Loss data collection and analysis
- External event analysis
- Inherent and residual risk assessment
- Control effectiveness evaluation
- Risk scoring and prioritization
- Emerging risk identification
Control Framework and Design
Control Types and Categories- Preventive, detective, and corrective controls
- Manual vs automated controls
- Design effectiveness evaluation
- Control optimization techniques
- Testing methodology design
- Sample selection techniques
- Testing frequency determination
- Deficiency evaluation and reporting
Risk Measurement and Monitoring
Key Risk Indicators- KRI design and development
- Threshold setting and escalation
- KRI monitoring and reporting
- KRI effectiveness evaluation
- Loss distribution approaches
- Scenario analysis techniques
- Capital calculation methodologies
- Stress testing applications
Loss Prevention and Mitigation
Incident Management- Loss event data collection
- Root cause analysis techniques
- Remediation planning and tracking
- Lessons learned processes
- Risk mitigation plan development
- Insurance and risk transfer
- Business process redesign
- Technology enablement for controls
Specialized Applications
Industry-Specific Considerations- Financial services operational risk
- Manufacturing and supply chain risks
- Healthcare operational risks
- Technology and digital operations risks
- Cyber risk integration
- Third-party risk management
- Conduct risk and culture
- Model risk management
Ready to Learn More?
Have questions about this course? Get in touch with our training consultants.
Submit Your Enquiry