Course details

Overview ?

Course Methodology

The course uses interactive techniques, such as brief presentations by consultant and participants. The course also features several group exercises and simulations to help participants consolidate the learning experience.

Course Objectives

By the end of the course, participants will be able to:

Define the basic terms related to risk and the fundamentals of Enterprise Risk Management
Execute a qualitative risk analysis to determine the overall risk level
Perform a quantitative risk analysis by utilizing techniques such as Value at Risk (VaR), Expected Credit Loss (ECL), stress testing, scenario analysis, Monte Carlo simulations, and decision tree analysis
Develop effective risk-based response and decision-making strategies based on the relative priorities
Identify risk management maturity within an organization, create a risk register, and monitor the entire process

Target Audience

This course has been designed for risk managers, risk owners, internal auditors, governance professionals, financial services regulators, project managers, finance managers, functional managers, senior managers, board members, and all individuals interested in Enterprise Risk Management (ERM)

Target Competencies

Identifying financial risks
Assessing financial risks
Evaluating financial risk responses
Developing decision-making capabilities
Monitoring and reporting financial risks

Course Outline

Introduction to Enterprise Risk Management
- Governance, Risk, and Compliance (GRC) framework introduction
- Three lines of defense
- Definition of risk and identification of risk types
- Enterprise Risk Management (ERM) process
- Definition of risk appetite
- Introduction to financial markets and products
Qualitative Risk Analysis
- Brainstorming and Delphi technique
- SWOT analysis
- Risk probability and impact assessment
- Heat maps and risk score
- Risk urgency assessment
Quantitative Risk Analysis
- Credit risk
  - Credit analysis
  - Credit rating
  - Credit portfolio management
  - Expected Credit Loss (ECL)
- Market risk
  - Classification of instruments and valuation methodologies
  - Value at Risk (VaR)
  - Stress testing
  - Liquidity risk
- Operational risk
Risk management and investment management methodologies
- Monte Carlo simulation
- Sensitivity and scenario analysis
- Expected Monetary Value (EMV)
- Risk-adjusted performance measures
Risk Response Strategies and Decision Making
- Secondary and residual risks: Risk response strategies
- Calibrating Key Risk Indicators (KRIs)
- Contingency planning strategy
- Incident management
- Decision tree analysis
- Decision-making reconciled with risk appetite
Assessment of Risk Maturity and Monitoring
- Implementation of a risk register
- Assessment of the risk management maturity
- Risk-based internal audit
- Risk reviews
- Identification of emerging risks and future trends