NCFM OPERATION RISK MANAGEMENT

Chapter 1 Introduction to Operations Risk 

  • Risk & Uncertainty
  • The Financial Sector
  • Risk Types
  • Operations Risk
  • Operations Risk Management
  • Recruitment & Training
  • Work Flow Design
  • Work Flow Documentation
  • Delegation of Authority
  • Independent Internal Audit
  • Independent Compliance Function
  • Independent Risk Management Function
  • Systems Audit
  • Corporate Governance
  • Whistle Blower Policy
  • Risk Management Culture

Chapter 2 Trades in Secondary Market 

  • Trade Intermediaries
  • Stock Broker
  • Trading Member (TM)
  • Clearing Member (CM)
  • Authorised Persons
  • Sub-brokers
  • Screen-Based Trading System
  • NEAT System
  • Corporate Manager
  • Branch Manager
  • Dealer

Order Management 

  • Entering Orders
  • Modifying Orders
  • Cancelling Orders
  • Order Matching
  • Trade Management
  • Risk Management in Trades 

Chapter 3 Clearing & Settlement of Trades 

  • Transaction Cycle
  • Clearing
  • Settlement
  • Pay-in of Funds and Securities
  • Pay-out of Funds and Securities
  • Settlement Risks
  • Counter-Party Risk
  • System Risk
  • Risk Management
  • Investor Protection 

Chapter 4 Workflow Design 

  • Front Office, Middle Office & Back Office
  • Risk Events 

Chapter 5 BASEL Overview

  • Bank for International Settlements (BIS)
  • Basel Accords
  • Basel I
  • Basel II
  • BASEL III
  • Detailed Loss Event Type Classification 

Chapter 6 Basel II: Operational Risk

  • The Three Methods
  • Basic Indicater Approach
  • The Standardised Approach
  • Advanced Measurement Approaches
  • Mix of Three Methods
  • SIGOR (June 2011)
  • Risk Appetite & Risk Tolerance
  • ORMF & ORMS: Verification & Validation
  • Embeddedness
  • Operational Risk Data
  • Gross Loss & Net Loss
  • Dates
  • Distributions 

Chapter 7 Basel: Operational Risk Principles 

  • Background
  • The Principles 

Chapter 8 Basel: Audit 

  • External Audit
  • Audit Committee
  • Internal Audit