Risk Management Oversight

Effective risk management is key to running a successful business. The majority of business failures are not because firms took on too much risk, but rather they did not properly understand and control risk.

With so many aspects of risk management falling to the board to oversee and approve, it’s essential for members to understand how managing risk can affect company strategy and capital management.

Better understand risk to make better decisions

Provide better oversight of your teams – Gaining a firmer grasp of risk management will help you ensure that the actions of senior managers are consistent with your firm’s corporate strategy, capital management and risk tolerance.

Outperform your competitors – You’ll take your firm beyond just keeping the regulator happy. Those senior teams that look at the big picture and effectively identify risks, challenge assumptions and build effective risk frameworks often gain a financial advantage over their competition.

Mitigate risk by getting better information – Learn when and how to challenge others in your firm to make sure you’re getting the information you need to make appropriate decisions (and become better at spotting when you’re not getting the true picture of events).

Focus on growing your firm – Fast track your knowledge and spend less time on the regulatory and compliance issues of risk management. So you can spend more time thinking about the steps you need to grow your business and secure its future.

The Course Agenda

Introduction

• What is “risk management” for a financial services organisation?
• Overview of the key elements of a risk management process
• Regulatory expectations of directors in relation to risk
• The FCA’s focus on “conduct risk”

Risk governance structures

• How should the risk function sit within existing governance structures?
• Learn the “3 lines of defence” model
• The roles of the Chief Risk Officer, the Risk Committee and the Board

Understanding risk appetites

• What is risk appetite?
• What should a risk appetite statement contain?
• The role of the board in defining and using risk appetite
• How does risk appetite link with risk capital and strategy?

Understanding risk management information

• What does the board need to know about risk?
• Risk Dashboards and other summary information
• The role of qualitative information in risk management

Planning for resilience and recovery

• Regulatory expectations for resilience and recovery planning
• The board’s role in resilience and recovery planning
• Recent regulatory publications on delegation to third parties

Embedding risk management and awareness in your company culture

• Indicators of a strong risk culture within a firm
• Tips on how to embed a risk culture