Duration of Course: Three day programme
This course is specifically aimed to meet the needs of Hong Kong’s banking staff, particularly those who work in the Middle or Back Office.
Course notes and worked examples will allow the participant to gain practical guidance in the main risks facing banks and the appropriate controls necessary to reduce or minimise those risks. The course is tailored to suit the needs of Hong Kong delegates.
At the end of the course, delegates will be able to:
Understand the role of the middle and back office
Identify the major sources of risk facing a bank
Be able to distinguish between Operational, Credit and Market risk
Be able to establish effective controls to minimise risk
Be familiar with ways to measure a bank’s exposure to Operational Risk
This is an introductory course and will therefore suit those who are new to banking. The course will appeal in particular to accountants and control staff from the middle and back office. The course will also be suitable for Information Technology and support staff.
Operational Risk Defined
Asset safeguarding
Regulatory requirements for Operational Risk
Cormac Butler is currently an active equity and options trader and a former consultant with Lombard Risk Systems London and has also worked with Peat Marwick and Coopers & Lybrand. He has considerable international experience as a training consultant in Derivative Accounting, Corporate Finance and Derivative Mathematics, working with major banks including Salomon Brothers, Robert Fleming and Banque Paribas. He has recently conducted in-house courses for Salomons, Morgan Stanley Dean Whitter (London), PriceWaterhouseCoopers (Holland), Investec (South Africa) and ABB Switzerland. In addition, he has worked for IIR and Euromoney in Singapore, Hong Kong, Thailand, America and Saudi Arabia. Cormac graduated from the University of Limerick, Ireland with a degree in Finance He has recently published Mastering Value at Risk (Financial Times Pitman) which is currently on the best sellers list (for Risk Management books) with Amazon.com, Gloriamundi.org and Financial World Bookshop (London).
Session One Business Model and Flow Diagrams
Market Risk Management
Credit Risk Management
Trade Capture and Operations
Role of the Middle Office
Brief Overview on Regulatory Compliance
Operational Risk and Management Accountability
(page 8)
We introduce entity diagrams and organisational charts and examine the Functional Roles and Operational processes
Session Two - Regulatory Compliance
Brief overview of Regulatory authorities such as FSA
Basle Committee on Banking Supervision (page
45)
Money Laundering Controls
Role of Capital Adequacy
Session Three - Confirmation Documents and
Payments
Characteristics of Effective Controls (Page
106)
Straight Through Processing (photocopies)
Confirmations (18)
Cash Management
Session Four – Interaction between Back Office & Middle Office Functions
Trial Balance and Reconciliation
Marking to Market
Risk and its Measurement
Reconciliation
Stress Testing and Value at Risk
Session Five - Operating Reporting Risk
Database Management
Setting up a Database of risk errors
Product Accounting Control
New Product and New Customer Control
Analysis of Mishandling Losses and Processing Errors
Session Six - Asset Safeguarding and Technology Risk
Developments in Software technology
Middleware
Securities Fraud and Irregularities (147)
Segregation of Duties
Section 7 RIsk Management VaR