Showing posts with label operational risk. Show all posts
Showing posts with label operational risk. Show all posts

Monday 1 March 2021

Operational Risk Management - UNITED 328 Engine Failure!

Operational risk happens everywhere. Proper planning and procedures are the key managing and mitigating such events.Just consider flight UNITED 328.

On the 20 February 2021, a United Boeing 777-200, registration N772UA performing flight UA-328 from Denver to Honolulu with 231 passengers and 10 crew, was in the initial climb out of Denver's runway 25 when the right hand engine's (PW4077) inlet separated associated with the failure of the engine. The crew declared Mayday reporting an engine failure. The aircraft stopped the climb at about 13000 feet, the crew requested to return to Denver after running the checklists. ATC offered any runway, they would make it happen. The aircraft returned to Denver for a safe landing on runway 26 about 23 minutes after departure. The aircraft stopped on the runway for a check by emergency services. Emergency services advised of an active fire within the right hand engine and extinguished the fire a few minutes later. The aircraft was subsequently towed off the runway to a remote parking stand, where passengers disembarked and were bussed to the terminal. There were no injuries.

Well trained pilots and air traffic controllers knew just what to do.

 

Thursday 18 February 2021

New Citadel Advantage Online Course on Illumeo on Key Risk Indicators (KRIs)


A new CITADEL ADVANTAGE online training course has just been published by ILLUMEO on Key Risk Indicators.

Key Risk Indicators (KRIs) are the measures and metrics that relate to a specific risk and show a change in the likelihood or result of that particular risk occurring. KRIs provide an early warning to identify potential events that may harm continuity of an activity, operation or a project. Their use is an integral part of the risk management process.

This course provides an introduction into understanding, developing and using KRIs in everyday business activities. In this course, we will discuss how KRIs fit into the risk management spectrum, how KRIs are developed and how they are used.

CHECK THE NEW COURSE OUT HERE

Tuesday 28 January 2020

In-house training

Have you ever considered going IN-HOUSE for your professional training needs?

The benefits are substantial. You can check them out HERE.

Check out available courses HERE.

  • Need something specifically to cater to your company's needs?
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Contact us at courses@citadeladvantage.com

Citadel Advantage's Richard Barr in Amsterdam (January 2020)


Sunday 29 December 2019

Online Training - Managing Operational Risk in Foreign Exchange Activities

This new 2-part online training course provides a practical approach to explaining the unique risks in foreign exchange operations, as well as how to implement an effective operational risk management system for these transactions. Earn CPE credits.

Managing Operational Risk in Foreign Exchange Activities Part 1- Basic Principles

Part 1 presents a practical approach to explaining the unique risks in foreign exchange operations.

Managing Operational Risk in Foreign Exchange Activities Part 2 - Best Practice & Illustrative Case Study

Part 2 offers a range of practices that will help mitigate some of the operational risks that are specific to the foreign exchange industry.

Click on the course title for more information and to register.

Use Coupon Code CITADEL10 for a great discount.






 
 
 

Wednesday 6 February 2019

Operations Risk - Active Management & Compliance - Athens, Greece: 17 & 18 June 2019

GET THE COURSE BROCHURE!
Send e-mail to courses@citadeladvantage.com with ATHENS in the subject line.


Join us in Athens, Greece on 17 & 18 June for an intensive introduction to Operational Risk Management and Mitigation. This training course has been designed to provide a practical "hands-on" approach to participants which will furnish them with all the tools and techniques they need to begin implementing what they have learned almost as soon as they return to the office.

The underlying course philosophy is to move the participants beyond the largely theoretical international compliance requirements for operational risk, and into an understanding of the practice of operational risk management and an ability to actually implement these procedures.

As the size and complexity of financial institutions has increased, so too have the challenges of understanding and reducing operational risks down to truly manageable levels. Increased regulatory concern and scrutiny have also increased the cost of operational risk events in the shape of outright financial loss, regulatory fines

The objectives of this training course is to provide all staff, irrespective of whether they work in the front-, middle- or back-office, with a sound foundation in the theory and practice of Operational Risk Management. This training is provided in a practical "hands-on" manner that allows them to implement what they have learned easily and effectively the minute they return to the office.
, and declining customer confidence.

For full details and registrations CLICK HERE

Register before 1 May 2019 for the Early Bird Discount.

Wednesday 29 August 2018

Managing Operational Risk – What every professional needs to know

By Stanley Epstein

"Operational risk is probably one of the most misunderstood risks in the whole of the risk spectrum.

While risks such as “credit risk”, “liquidity risk”, “market risk” are easily understood by business and other professionals, “operational risk” is a poor relation when it comes to grasping what it really means.

The starting point, of course, is to define what we mean when we speak about operational risk.

My favourite definition is that formulated by the “Basel Committee on Banking Supervision” in its “Principles for the Sound Management of Operational Risk” (BIS - June 2011).

The definition reads;

“Operational risk is defined as the risk of loss resulting from inadequate or failed internal processes, people and systems or from external events.” 
 
To read the rest of this article please visit ILLUMEO's Blog >> HERE

Sunday 22 July 2018

On-line Course - Key Elements in Managing Operational Risk

Inadequate or failed internal processes, people and systems or external events are the key “risk drivers” in operational risk. These “risk drivers” are exceptionally wide-ranging and cover virtually every element of the operations in all forms of business and other organizations.

This on-line training course sets out a step-by-step approach in how to manage your operational risks, covering the fundamental steps required to identify, manage, and mitigate operational risks.

We cover key aspects of operational risk management including critical issues such as risk analysis, risk appetite, probability, impact, risk mitigation process, and prioritization.

Additionally we are also going to give you a great 10% course discount. Just use Coupon Code CITADEL10 when you register.

Sign up HERE for this course TODAY! 

Check out our other great on-line courses HERE

Tuesday 20 March 2018

Why managing operational risk is so important

By Stanley Epstein



Banks, like any other firm or individual, are exposed to many different forms of risk. So one would not expect it, but the term “risk” still remains one of the most misunderstood terms in the banking industry.

This short article will explain what risk is and some of the different types of risk that banks and other financial institutions are exposed to in their everyday business activities.
The definition of “Risk” as “exposure to the chance of injury or loss” is a typical one (with thanks to Dictionary.com).

There may be other variations on this theme, but what we have is good enough. The key elements of “RISK” are EXPOSURE to the CHANCE of LOSS. Put another way; the possibility that something will cause a financial or other loss. This is the basis for understanding the different types of risks that banks face.

In its basic form, banks take in deposits and lend these deposits out in the form of loans. Should the borrower not repay his loan the bank is faced with what is called “credit risk”. Credit risk is the possibility that a borrower will be unable to make payment of the amount of the loan when it falls due. Credit risk is absolute. It’s the chance that the borrower will never be able to repay the loan. Credit risk and bankruptcy are closely linked.

Liquidity risk is on the other hand not absolute. Liquidity risk is the possibility that a borrower will be unable to make payment of the amount due at the time that it is due. However the reason for this could be cash flow issues. It does not imply that the borrower is insolvent as he may be waiting for funds due to him to arrive. In terms of Liquidity risk the borrower may still be able to repay the loan at a later time.

Between them, Credit risk and Liquidity risk are the major business risks that banks face because they are the major part of the business of banking.

Over the last few years there has been a growing awareness that Operational risk is another source of danger to a bank. This was given “official” voice and form in the Basel Accords, where Operational Risk has been defined as “the risk of direct or indirect loss resulting from inadequate or failed internal processes, people and systems or from external events”. Take note of this definition – it is very important.

Operational risk in terms of the Basel Accords has been subdivided into seven separate categories. We examine each of these categories and briefly explain what types of risks they cover.

  • Internal Fraud. By and large this covers fraud by bank staff such as the stealing of assets, theft of client information, covering up errors, intentional mismarking of positions, bribery etc.
  • External Fraud. This occurs where non-bank staff is involved such as in computer hacking, third-party theft, forgery.
  • Employment Practices and Workplace Safety. Inequitable staff policies, workers compensation claims, employee health and safety issues.
  • Clients, Products and Business Practice. This is a very wide field and generally covers market manipulation, antitrust issues, improper trading activities, bank product defects, fiduciary breaches, account churning. The sub-prime Mortgage debacle is a clear example of a product defect. The huge LIBOR rate rigging scandal which has dominated the news these past few years falls into this category as well.
  • Damage to Physical Assets. This covers things like natural disasters, terrorism and vandalism – anything that results in actual damage or destruction of the bank’s physical assets. These actions may be deliberate or purely accidental.
  • Business Disruption and Systems Failures. Power failures, computer software and hardware failures. A hurricane or a flood that results in banking services being disrupted also falls into this category.
  • Execution, Delivery and Process Management. This covers things like data capture errors, accounting errors, failure to meet legal reporting requirement, negligent loss of client assets.
There are other risks too, such as legal, reputational, market – the list goes on. But that is another story.

Friday 24 November 2017

On-line CPE Certified Training Courses


Citadel Advantage is proud to be associated with Illumeo, a provider of continuing education courses and webinars.

If you are one of the millions of certified professionals in the corporate world, it's critical to you, your current job, and your future career aspirations to remain certified and continuously improve your skills. For managers it’s increasingly important to hire and retain certified professionals in critical roles.

Illumeo delivers continuing education courses and webinars of the highest quality, for over two dozen of the most popular certification types for corporate professionals, at an incredibly affordable price.

Citadel Advantage is a providing a growing range of professional courses that are being marketed under the Illumeo brand.

Most of our Citadel Advantage’s Illumeo courses carry CPE credits for CPA, CPD, CMA, CFE, CGFM, CIA, CRMA.

Citadel Advantage’s two Principal Associates, Richard Barr and Stanley Epstein are both certified Illumeo instructors.

We list below titles of our growing range of on-line courses presented through Illumeo.

If you register through ourselves we are able to offer you a great 10% discount on course fees. Just use Coupon Code Citadel10 when registering.

For more information on each course and to start the registration process simply click on the course title.

Key Elements in Managing Operational Risk

Understanding the Blockchain

Understanding Supply Chain Finance

Business Continuity Planning Risk vs Reward 

Enterprise Risk Management (ERM) - A Comparison of COSO & ISO

Foreign Corrupt Practices Act Compliance

International Trade - Part 1: Trade Finance Instruments

International Trade - Part 2 - Payment Instruments

International Trade - Part 3 – International Payment Systems

International Trade - Part 4 - Supply Chain Finance  

Principles for the Management of Operational Risk in the Financial Industry

Understanding FinTech – Part 1 (FinTech Basics) 

Understanding FinTech – Part 2 (Financial Service Functions & Innovation Clusters) 

Understanding FinTech – Part 3 (Blockchain, Bitcoin & Other Cryptocurrencies) 

Understanding Operational Risk in Financial Institutions

Globalization, Finance and the Supply Chain 

Thursday 13 July 2017

On Demand Course – Understanding Operational Risk in Financial Institutions


Join Citadel Advantage’s Stanley Epstein in this ILLUMEO on-demand training course.

This course examines each of the seven operational risks categories, and provides a detailed explanation on each risk explaining what it is, what type of events are involved, why these activities pose a risk, and provides participants with clear practical examples.

For Details & Registrations CLICK HERE

 
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