Operational risks are among the most significant challenges faced by financial institutions and banks in today's world. Through the Operational Risk in Banks course, offered by the British Academy for Training and Development, participants will be provided with a comprehensive understanding of operational risks, their causes, and their impact on the stability of banking operations. The course aims to introduce participants to the different types of operational risks in the banking sector, as well as how to identify, assess, and manage them effectively.

Participants will gain practical skills in identifying potential risks within banking institutions and will learn techniques and risk management tools that help mitigate these risks and enhance the stability of banking operations. The course aims to improve the ability to analyze risks, develop preventive strategies, and comply with international regulatory standards.

Target Audience

• Executives and department heads in banks
• Risk management specialists in the banking sector
• Staff in compliance and internal control departments
• Anyone working in banks who wants a deeper understanding of operational risks and their management mechanisms

Program Objectives

By the end of the training program, participants will be able to:

• Recognize the types of operational risks in banks and how to classify them
• Apply effective tools and techniques for identifying and assessing risks
• Develop risk management strategies suitable for each type of risk
• Comply with international regulatory standards related to operational risks
• Improve the internal processes of the bank and reduce the negative impacts of operational risks

Introduction to Operational Risks and Their Causes

• Introduction to operational risks in banks

  • Definition of operational risks and their sources
  • The difference between operational risks and other types of risks (such as credit and market risks)
  • The impact of operational risks on the stability of banking operations

• Classification of operational risks

  • Classification of operational risks by type: financial and non-financial
  • Risks caused by technology: cyberattacks and system failures
  • Risks related to individuals: human errors and poor management

• Identifying operational risks in banking operations

  • Methods for identifying risks within daily banking operations
  • Identifying risks related to online banking services
  • Risks arising from failure to comply with legal regulations

• Tools for assessing operational risks

  • Evaluation methods such as scenario analysis and impact analysis
  • Using performance indicators and benchmarks to measure risks
  • Quantitative and qualitative assessment of operational risks

• Financial and non-financial impacts of operational risks

  • How operational risks affect the budget and profitability
  • The impact of risks on the bank's reputation and customer relations
  • The role of operational risks in exposing the bank to legal and regulatory issues

Managing Operational Risks in Banks

• Operational risk management strategies

  • Risk avoidance and reduction strategies
  • Prevention tools and strategies such as automation and safety procedures
  • Risk reduction through continuous education and training

• Using Enterprise Risk Management (ERM) systems in banks

  • The role of Enterprise Risk Management systems in identifying and assessing risks
  • How to use digital tools and software to facilitate risk assessment and management
  • Application of information technology to enhance risk management processes

• The consequences of operational risks

  • How to deal with risks after they occur: response and recovery plans
  • Long-term impacts on operations and corporate reputation
  • Crisis management arising from operational risks in banks

• Compliance with international standards in managing operational risks

  • International standards and regulations for risk management, such as Basel III
  • The role of regulatory bodies in reducing operational risks
  • How to comply with regulatory requirements in risk management

• Building a risk management culture in banks

  • Promoting risk awareness within the bank
  • Activating a culture of accountability and transparency
  • Encouraging employees to collaborate and engage in risk management

Risk Assessment and Developing Prevention Strategies

• Assessing operational risks using scenario analysis

  • Scenario analysis to test the bank's preparedness for different risks
  • Developing preemptive response strategies for potential risks
  • Assessing the impact of risks based on likelihood and financial consequences

• Developing strategies to reduce technology-related risks

  • Addressing technological challenges such as cyberattacks and defective systems
  • Prevention and protection strategies against security breaches
  • Improving the bank's response to cyberattacks

• Crisis assessment and impact analysis

  • Managing crises arising from operational risks
  • Assessing financial and operational damage caused by risks
  • Implementing recovery plans and strategies for business continuity

• Developing an emergency response plan and employee training

  • Developing an emergency response plan to handle operational risks
  • The importance of regular employee training on how to handle risks
  • Conducting crisis simulations to assess organizational readiness

• Applying acquired knowledge and future planning

  • How to apply operational risk management strategies in banks
  • Identifying future actions to reduce operational risks
  • Evaluating overall performance and improving the bank's future processes