INTRODUCTION
Financial risk management (FRM) is an important element of enterprise risk management (ERM) as a transforming element in corporate governance that affects all management levels. Prior to the emergence of FRM/ERM, risk management was handled by various functional disciplines. 21st Century risk management requires the attention of the entire organization. Thus, FRM/ERM processes and decisions are no longer solely owned by the finance professionals.
Compliance with both Financial Risk Management techniques and individual country regulations is the best way to assure our shareholders that we are doing our part to protect their interests. This program addresses both of these in some detail.
WHO SHOULD ATTEND?
- Personnel who are seeking to guide their business to plan and achieve long term superior performance taking into account the risks that may affect the financial objectives
- Employees in any functional area who are seeking to improve the operational performance of their units, or gain an insight into: risk assessment, risk mitigation, and any other risk analyses that affect decision making
- Anyone who has the need to upgrade their understanding of risks in decision making
- Compliance officers
- Senior staff who want to make sure the firm complies with “best practice” worldwide
PROGRAMME OBJECTIVES
- Identify their personal role as risk managers
- Demonstrate how to understand risk at all levels of an organization in an integrated fashion. Business strategy risk, finance risk, operational risk, asset impairment, franchise risk, and competitive risk are among the risks to be discussed. Risks will be measured in quantitative and qualitative terms
- Alternative counter-measures will be defined and assessed. Suitable comprehensive risk models will be reviewed including the OECD model, COSO model, ISACA model, among others
- Place financial risk management into the overall governance model
- Developing an understanding of the Board’s perspective for financial risk
- Recognize the C-level executives’ perspectives for financial risk
- Understand the significance of higher level risk perspectives translated into business unit risk management and functional management
- Discuss financial risk related regulations
- Integrate non-financial risks and financial risk concepts
- Determine a firm’s ‘appetite for risk’
- Develop a compliance plan
TRAINING METHODOLOGY
This programmed will be highly participatory and your programmed leader will present, guide and facilitate learning, using a range of methods including discussions, case studies and exercises. Where appropriate, these will include real issues brought to the training session by delegates.
By leveraging the diversity of participant experiences, each participant generates varying perspectives on risk. These lessons learned offer substantial benefit to each participant as they return to their organizational unit.
PROGRAMME OUTLINE
DAY 1 - Corporate Governance and Financial/Enterprise Risk Management
- Introduction to Corporate Governance
- The need for Corporate Governance
- Elements of Corporate Governance
- Role of Financial Risk Management / Enterprise Risk Management
- Performance measures - the need for FRM/ERM
- Quantitative and qualitative risks
- Developing FRM/ERM strategy - do we need a CRO?
- Deriving lessons learned from Day 1
DAY 2 - Understanding Financial/Enterprise Risk Management
- Understanding uncertainty and risk/opportunity
- Identifying strategic financial risks
- Identifying operational risks
- Identifying functional financial risks
- Assessing financial risks in each perspective
- Finding our personal risk profile (appetite for risk)
- Clarifying desired outcomes, expected outcomes, and actual outcomes
- Deriving lessons learned from Day 2
DAY 3 - Financial/Enterprise Risk Management Implementation
- Implementing, communicating, and cascading Financial/Enterprise Risk Management
- Does the OECD model work?
- Can COSO help?
- Does the ISACA model help functions other than IT?
- What personal risk elements enter the FRM/ERM?
- Auditing the FRM/ERM
- Implementation challenges: are we ready to change our lives to risk management?
- Deriving lessons learned from Day 3
DAY 4 - Measurement and Decision Making in FRM/ER
- Quantifying the world FRM/ERM
- Measuring the unmeasureable = quantifying the qualitative
- Defining FRM/ERM metrics that work in your organization
- Do we speak the natural language of FRM/ERM?
- Recognizing that we are rewarded for risk taking not risk elimination!
- Allocating resources to support strategic intent recognized in ERM
- Recognizing that the FRM/ERM can clarify the business case for risky decisions
- Deriving lessons learned from Day 4
DAY 5 – Compliance – issues & guideline
- Compliance, Explanation, and reporting of ERM
- Financial institution regulations - A to Z
- What they are
- What they mean
- How to use them
- Basel II Accords –
- What they are
- What they mean
- How to use them
- How we can minimum risk using these
- Deriving lessons learned from Day 5
