Managing Operational Risks in business line Strategies for Executive managers #253002

Upon successful completion of this course, participants will be able to:

• Integrate operational risk considerations directly into business line strategic planning and decision-making processes

• Identify and assess business line-specific operational risks using advanced risk assessment techniques

• Develop effective risk mitigation strategies that balance control costs with business objectives

• Establish key risk indicators (KRIs) and early warning systems tailored to specific business lines

• Evaluate the risk-return tradeoffs in strategic business decisions and resource allocation

• Communicate risk effectively to stakeholders, including boards, investors, and regulatory bodies

• Foster a risk-aware culture within their business units that supports strategic objectives

This advanced course is designed for executives and senior managers with responsibility for business line performance and strategy:

• Business Line Heads and General Managers

• Division Presidents and Regional Directors

• Senior Vice Presidents with P&L responsibility

• C-Suite Executives (COOs, CFOs, CROs) overseeing multiple business lines

• Directors of Operations, Strategy, or Business Development

• Senior Risk Managers supporting specific business lines

• Executives preparing for increased leadership responsibilities

• Pre-assessment
• Live group instruction
• Use of real-world examples, case studies and exercises
• Interactive participation and discussion
• Power point presentation, LCD and flip chart
• Group activities and tests
• Each participant receives a binder containing a copy of the presentation
• slides and handouts
• Post-assessment

Day 1: Foundations of Business Line Risk Management

• Morning Session: The Strategic Importance of Operational Risk

  • Understanding Operational Risk in the Business Line Context

  • The Business Case: How Effective Risk Management Creates Competitive Advantage

  • Aligning Risk Management with Business Line Objectives and KPIs

• Afternoon Session: Risk Governance for Business Lines

  • Three Lines of Defense Model: Roles and Responsibilities

  • Establishing Effective Risk Governance Within Business Units

  • Workshop: Map current risk governance structure and identify gaps in participant’s business line

Day 2: Risk Identification and Assessment Techniques

• Morning Session: Advanced Risk Identification

  • Business Process Analysis and Risk Mapping

  • Scenario Analysis and Stress Testing for Business Lines

  • Emerging Risk Identification: Horizon Scanning Techniques

• Afternoon Session: Risk Assessment and Quantification

  • Risk Assessment Methodologies: Quantitative vs. Qualitative Approaches

  • Developing Business Line-Specific Risk Metrics and KRIs

  • Practical Exercise: Conduct a risk assessment for a critical business line process

Day 3: Risk Mitigation and Decision-Making

• Morning Session: Risk Response Strategies

  • The Four T’s: Tolerate, Treat, Transfer, Terminate

  • Cost-Benefit Analysis of Risk Mitigation Options

  • Integrating Controls into Business Processes

• Afternoon Session: Risk-Informed Decision Making

  • Incorporating Risk into Strategic Business Decisions

  • Capital Allocation and Risk-Adjusted Return Analysis

  • Case Study: Analyze a major business decision failure due to poor risk assessment

Day 4: Implementation and Monitoring

• Morning Session: Risk Culture and Communication

  • Building a Risk-Aware Culture Within Business Lines

  • Effective Risk Reporting to Different Stakeholders

  • Change Management for Risk Initiatives

• Afternoon Session: Monitoring and Adaptation

  • Developing Early Warning Systems for Business Lines

  • Key Risk Indicators (KRIs) and Dashboard Development

  • Workshop: Design a risk dashboard for executive monitoring of business line risks

Day 5: Integration and Leadership Application

• Morning Session: Strategic Risk Integration

  • Embedding Risk Management into Business Planning Cycles

  • Risk-Based Resource Allocation and Budgeting

  • Managing Interdependencies Between Business Lines

• Afternoon Session: Capstone and Action Planning

  • Final Exercise: Develop a comprehensive risk-informed strategy for a business line facing multiple operational risks

  • Executive Presentation: Participants present their strategies to a simulated board/executive committee

  • Personal Action Planning: Creating an implementation roadmap for their business line

  • Course Recap and Certification