Explains the principal roles for board of directors and senior leaders when establishing an operational risk governance program. Identifies the importance of effective challenge by the board, risk culture and appetite, three lines of defense, and methods for measuring operational losses, and definition of economic capital. Covers the criteria for key risk indicator (KRI) selection.
Describe the principles of effective operational risk governance and the roles of the board and senior management in overseeing operational risk programs
Identify the elements of an effective operational risk governance program
Describe the three lines of defense approach and its role in establishing effective management and oversight of operational risk across the organization
Identify the methods used in measuring operational risk
Describe criteria for key risk indicator (KRI) selection and best practices in monitoring and reporting operational risk
What You’ll Learn
After successfully completing this course, you will be able to: