Course Code: 520

Duration: 1 day

Level: Basic

Fee: $795.00

Instructor: William DuMond

CPE Credits: 7

Prerequisite: No Prerequisite Required.

This course will review the principles of operational control and reporting and explore significant historic lapses that have caused operational losses. We will also review the critical role of STP in the timely management of risk.

The course covers a set of principles that are universally applied in well-run operations. The key is measuring the right metrics on a timely basis and a policy of addressing the inevitable problems immediately, while keeping everyone in the loop. The financial controls and policies needed to manage any operation will be covered. Problems and challenges are inescapable but the principles covered in this course will allow you to manage problems to the most optimal outcome attainable.

Additionally, the factors that continue to impede full STP will be reviewed along with some Unusual Risks including untested insurance risk and the intraday risks of dealing with a counterparty exposure in a world of siloed information.  The Instructor laces his presentation not only with practical principles but also with case studies and "real life" examples that re-enforce the principles learned in successfully managing capital market operations, custody and clearance businesses for one of the largest and most profitable banks in the world.

There will also be an analysis of the causes of the debacle of 2008 and a review of how a return to basic principles will mitigate risks.

Many leading financial companies have used this course to educate professionals throughout their firms. The classes were very well received, with favorable comments made regarding the real world examples used by the instructor to highlight the principles covered in the course.

Topics of discussion include:

Defining and Recognizing Operational Risks

Developing Measures of Operational Health

•  What Should We Be Watching?
•  Setting Standards for Good Operational Performance
•  Developing a Strategy of Early Response to Problems

The Role of an Independent Reporting Function to Assure Metrics Integrity

Controlling Risk in a World Focused on Controlling Costs - What To Do

The Role of STP in Enhancing Intraday Operational Risk Management

How Will Basel Capital Requirements Impact the Management of Operational Risk?

The Operational Risks Inherent in the Explosion of Regulatory Requirements

•  Patriot's Act, Sarbanes Oxley Act and Beyond

Settlement Risks

•  What Are We Living With Now?
•  Can We Get to Virtual T+1?
•  Why Bother?

Learning From Old Problems and the Mistakes of Others

•  Managing Operational Risk With an Eye to History and Today's Newspapers
•  The Need for Truthful and Full, Honest Communications Within and Among Financial Institutions