Operational Risk Scenario Analysis
Virtual Training: Scenario analysis has become an important tool in the practice of operational risk management. 10:00-11:30 am EST
December 14, 10:00-11:30 AM EST
Scenario analysis has become an important tool in the practice of operational risk management. Subject matter experts develop and analyze unlikely but plausible extreme events that might result in significant losses for a financial services company. Examples are natural disasters, acts of terrorism, data breaches, class action suits and fraud.
Despite the difficulties in scenario assessment and modeling, scenarios can be very useful for:
Risks that have not resulted in a loss so far such as risks caused by new legislation, new products, new technology, or rare events like a pandemic.
Risks for which internal loss data is not available, but business experts anticipate such losses in future. This situation is especially common for institutions that have just started internal risk data collection.
Risks for which business experts have a good understanding of underlying processes and can make reliable assessments of the risks such as some data security risks.
Why you should attend:
Scenario analysis complements the risk assessment process, which often overlooks material events that only happen infrequently. Understanding and estimating the likelihood and impact of extreme events is essential to effective risk response and capital planning, stress testing, risk financing (i.e., insurance), business continuation planning and preparation of own risk and solvency assessment (ORSA) reports.
This webinar will outline the objective; methodology, roles and responsibilities, and reporting of operational risk scenario analysis. It will also discuss the link between scenario analysis and regulatory capital requirements imposed on financial institutions.
Areas to be covered during this session:
• Background: Why Scenario Analysis?
• Objectives and expected benefits
• Methodology for selecting, analyzing, quantifying and reporting operational risk scenarios
• Understanding secondary and tertiary impacts
• Understanding impact to reputation
• Scenario Analysis as a component of the operational risk capital requirement calculations
• Risk Response (avoidance, reduction, sharing and acceptance)
• Reporting results to the Board of Directors and external stakeholders
Registration Fee: Sustaining Members: $110.00 Contributing Members: $125.00 Free Affiliate and Non-members: $135.00
About the Speaker
Mario Mosse is the President of MMosse Consulting, LLC, a company that provides risk management advice and training to the financial services industry. Mosse has significant experience in the areas of enterprise risk management, regulatory compliance, internal audit and project management at major financial services companies.
He also has extensive knowledge of U.S. and international financial services and products (retail and corporate banking, securities brokerage, investment banking, asset management and life insurance) as well as risk management and internal control frameworks such as Basel III, Solvency II and COSO.
Previously, Mosse was with Prudential Financial, Inc. for 18 years where he was in charge of the company’s operational risk management program. Prior to that, he was the Chief Internal Control Officer for Prudential Securities and Vice President, Management internal Control of Prudential Investments.
Prior to joining Prudential, Mosse spent 19 years with The Chase Manhattan Bank, N.A. where he was in charge of risk management and compliance for the Corporate Finance Sector, South America Regional Audit Executive, and Vice President, General Auditing.
Online registration not available.